THE EMIRATES GROUP ANNUAL REPORT ǀ 2018-19

THE EMIRATES GROUP

ANNUAL REPORT

2018-19

| OVERVIEW

EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

KEEPING WILDLIFE IN THE WILD

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The human race has much to be proud of – whether it is pushing the boundaries of science and technology,
EMIRATES evolving art, culture and creativity, or innovating at an astonishing pace to benefit mankind.

DNATA
But there are also things we just cannot be proud of.

GROUP
The serious damage to our ecosystems, the defacement of our beautiful planet, the plundering and annihilation of
FINANCIAL so many amazing creatures that inhabit our world is shocking.
INFORMATION

It needs to stop.
ADDITIONAL
INFORMATION

The illegal trade in the sale of wild animals either as pets, or for their hides, tusks or other parts for use in food,
medicine, exotic leathers, jewellery and ornaments is worth US$ 20 billion every year. The increase in illegal
poaching worldwide is a worrying trend.

Today, there are 7,000 endangered species in the world, and many are nearing extinction. We all have a role to
play in protecting the planet, and the actions we take today as individuals, communities, corporates and countries
will determine their future for generations to come.

So, what’s being done?

The World Travel & Tourism Council (WTTC) is leading the industry’s effort to fight this challenge. The
Buenos Aires Declaration is a commitment to reach one billion travellers with our messages and to work with
communities to develop sustainable tourism that provides livelihoods and protects wildlife. WTTC and the
World Wildlife Fund are developing guidelines to eliminate illegal wildlife trafficking from our supply chains.

United for Wildlife, spearheaded by the Duke of Cambridge and the Royal Foundation, is implementing projects
to end the entire illegal wildlife trade chain. It believes combining forces with the private sector is crucial in
stopping the trafficking of wildlife products. The Buckingham Palace Declaration, signed in March 2016, commits
to taking steps to shut down the routes exploited by illegal wildlife traffickers and remove the vulnerabilities in
transportation and customs to tackle the criminals.

As one of the world’s largest businesses in the aviation industry, the Emirates Group is committed to making a
positive difference in combatting illegal wildlife trade, and to marshalling our resources in support of this cause.

Read more on pages 56 to 63

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2018-19

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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

H I S H I G H N E S S S H E I K H M O H A M M E D B I N R A S H I D A L M A K TO U M
V ICE P R E SI D E N T A N D P R I ME MI N I ST ER O F T HE UAE AN D RU LER O F D U BAI

From an early stage, the UAE’s growth journey was guided by a human-centred development model
with a primary aim to serve the people and ensure their happiness. In this vision for development, our
ambitions were not limited to matching the progress of the world’s most developed countries. We set
our sights on being a frontrunner on the global stage, a leader in shaping the future of humanity.

The aviation, travel, tourism and leisure industries have always been a key part of this vision. They
represent important pillars of our national economy and are vital to our global aspirations. These sectors
are also at the heart of our efforts to be a global commercial hub and a lifestyle destination. The Emirates
Group was one of the major initiatives we launched in our pursuit of excellence in these sectors.

Today, the Group is a market leader and industry trendsetter. It is an achievement we can all be
proud of. We can never underestimate the role that Emirates has played in various dimensions of
our development.

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EMIRATES
DNATA
GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
Emirates has helped us tap the power of our strategic
geographic location. It has also been instrumental in the
city’s rapid rise as a tourism hub. Dubai was ranked the
world’s fourth most visited city for the fourth year in a
row by the MasterCard Global Destination Cities Index
(GDCI) 2018. Dubai also topped the list of global cities
with the highest international overnight visitor spend for
the third year in a row.  themes – ambition and sustainability. In 2022, we are set
Parallel to Emirates’ rise as a world-leading airline, we
were able to create high-quality infrastructure, some of
the world’s best hotels and hospitality service levels that
are unrivalled globally. We have shown the world that we
never rest on our achievements.
Dubai has set itself an ambitious target of welcoming
25 million visitors by 2025. Next year, we will be
welcoming millions of guests to Expo 2020, the largest
event to be ever organised in the Arab world. It will be an
The Arabian Oryx was reintroduced into the Dubai Desert
Conservation Reserve and now forms one of the largest,
free roaming herds of its kind in the region. It was the
first animal to be reclassified - from extinct in the wild to
vulnerable - by the IUCN Red List of Threatened Species.
opportunity to showcase our finest hospitality,
organisational capabilities, infrastructure, and investment
opportunities. Expo will be a catalyst, not only for ideas
and innovation, but also connectivity and growth across
the world.
Our development journey today is marked by two key
to be the first Arab country to have conducted a mission
to Mars. As part of our longer-term space aspirations,
we plan to establish the first-ever inhabitable human
settlement on Mars by 2117. We are at the global
forefront of harnessing a range of other advanced
technologies, including artificial intelligence and Internet
of Things. Dubai's and the UAE’s success has
essentially been a story of partnerships between the
government and citizens, and between the public and
private sectors. Investors, entrepreneurs, scientists,
creative professionals and innovators from all over
DUBAI HAS SET ITSELF
AN AMBITIOUS TARGET
25 million
OF WELCOMING
VISITORS
BY 2025
the world have come together here to achieve their
dreams. Our spirit of peaceful coexistence goes
hand in hand with our ethos of collaboration and
partnership. We have opened our doors for everyone
seeking opportunities to contribute their talent and
innovation. That is why it has become a preferred
destination for people across the world, whether it
be for investment, work or lifestyle. More than 200
nationalities live in Dubai in harmony, making the city
a model for cultural coexistence.
The Emirates Group continues to be one of the key
enablers of our unique role in the world – a bridge
between markets, cultures and regions. In the years
ahead, I believe it will be an even bigger player in
the UAE’s economic march and further enhance its
leadership in shaping the future of the world’s
aviation, travel, tourism and leisure industries.
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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates is a global airline, serving 156 airports in 84 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.

dnata is one of the largest combined air services providers in the world, serving over
320 airlines in 37 countries. dnata’s main activities are the provision of cargo and ground
handling, catering 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 document, they are
together referred to as the Emirates Group.

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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

8 FINANCIAL HIGHLIGHTS 16 EMIRATES 38 DNATA 54 THE EMIRATES GROUP 84 FINANCIAL INFORMATION

10 CHAIRMAN’S STATEMENT 18 PRESIDENT'S MESSAGE 40 PRESIDENT'S MESSAGE 56 PROTECTING WILDLIFE 85 EMIRATES FINANCIAL COMMENTARY

14 LEADERSHIP 20 FLYING BETTER 42 SECURING SAFETY GLOBALLY 58 WILDLIFE CONSERVATION 95 DNATA FINANCIAL COMMENTARY

24 CONNECTING THE WORLD
26 FLEET FOR THE FUTURE
30 GROWING OUR WORLD
32 MAKING LOYALTY COUNT
34 ONLINE MARCHES ONWARDS
36 SUPPORTING PEOPLE AND
THEIR PASSIONS
44 BEING OUR BEST AT THE
WORLD’S BUSIEST
46 AIRPORT OPERATIONS SPANNING
THE GLOBE
48 SPICING UP THE WORLD
OF CATERING
50 TRAVEL EXPANDS ITS HORIZONS
60 PRESERVING OUR PLANET
64 SUPPORTING COMMUNITIES AROUND
OUR NETWORK
68 OUR PEOPLE, OUR PRIDE
72 GROUP KEY EVENTS
80 OUR GROWING NETWORK
101 EMIRATES INDEPENDENT AUDITOR’S REPORT
106 EMIRATES CONSOLIDATED FINANCIAL STATEMENTS
149 DNATA INDEPENDENT AUDITOR’S REPORT
152 DNATA CONSOLIDATED FINANCIAL STATEMENTS
190 ADDITIONAL INFORMATION
192 EMIRATES TEN-YEAR OVERVIEW
194 DNATA TEN-YEAR OVERVIEW

196 GROUP TEN-YEAR OVERVIEW

197 GROUP COMPANIES OF EMIRATES

198 GROUP COMPANIES OF DNATA

200 GLOSSARY

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THE EMIRATES GROUP
ANNUAL REPORT

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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION
Emirates Group
Financial highlights 2018-19 2017-18 % change
Revenue and other operating income* AED m 109,255 102,409 6.7
Operating profit AED m 3,925 5,282 (25.7)
Operating margin % 3.6 5.2 (1.6) pts
Profit attributable to the Owner AED m 2,316 4,113 (43.7)
Profit margin % 2.1 4.0 (1.9) pts

Financial position
FINANCIAL HIGHLIGHTS Total assets**
Cash assets
AED m
AED m
142,267
22,159
141,625
25,365
0.5
(12.6)

Employee data
Average employee strength number 105,286 103,363 1.9

* After eliminating inter company income/expense of AED 3,071m in 2018-19 (2017-18:

AED 2,987m).

** After eliminating inter company receivables/payables of AED 222m in 2018-19 (2017-18:
AED 254m).

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.

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Revenue and operating income in AED m Profit attributable to the Owner in AED m Revenue and operating income in AED m Profit attributable to the Owner in AED m
| OVERVIEW
18-19 97,907 18-19 871 18-19 14,419 18-19 1,445
EMIRATES
17-18 92,322 17-18 2,796 17-18 13,074 17-18 1,317
DNATA
16-17 85,083 16-17 1,250 16-17 12,182 16-17 1,210

GROUP 15-16 10,630 15-16 1,054

15-16 85,044 15-16 7,125

FINANCIAL 14-15 88,819 14-15 4,555 14-15 9,160 14-15 906

INFORMATION

ADDITIONAL
INFORMATION
Emirates dnata
Financial highlights 2018-19 2017-18 % change Financial highlights 2018-19 2017-18 % change
Revenue and results Revenue and results
Revenue and other operating income AED m 97,907 92,322 6.0 Revenue and other operating income AED m 14,419 13,074 10.3
Operating profit AED m 2,647 4,086 (35.2) Operating profit AED m 1,278 1,196 6.9
Operating margin % 2.7 4.4 (1.7) pts Operating margin % 8.9 9.1 (0.2) pt
EBITDAR AED m 24,291 24,970 (2.7) Profit attributable to the Owner AED m 1,445 1,317 9.7
EBITDAR margin % 24.8 27.0 (2.2) pts Profit margin % 10.0 10.1 (0.1) pt
Profit attributable to the Owner AED m 871 2,796 (68.8) Return on shareholder's funds % 19.2 19.3 (0.1) pt
Profit margin % 0.9 3.0 (2.1) pts
Return on shareholder's funds % 2.4 7.9 (5.5) pts Financial position
Total assets AED m 15,091 14,292 5.6
Financial position Cash assets AED m 5,122 4,945 3.6
Total assets AED m 127,398 127,587 (0.1)
Cash assets AED m 17,037 20,420 (16.6) Key operating statistics
Net debt (including aircraft operating Aircraft handled number 698,739 659,591 5.9
lease) to equity ratio % 209.8 216.4 (6.6) pts Cargo handled tonnes '000 3,091 3,083 0.3
Meals uplifted number '000 70,889 55,718 27.2
Airline operating statistics
Travel services:
Passengers carried number '000 58,601 58,485 0.2 Total Transaction Value (TTV) AED bn 11.5 11.3 1.6
Cargo carried tonnes '000 2,659 2,623 1.4
Passenger seat factor % 76.8 77.5 (0.7) pt Employee data
Overall capacity ATKM million 63,340 61,425 3.1 Average employee strength number 45,004 41,007 9.7
Available seat kilometres ASKM million 390,775 377,060 3.6
Aircraft number 270 268 2 nos

Employee data
Average employee strength number 60,282 62,356 (3.3)

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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Despite global challenges, the Emirates Group

delivered its 31st consecutive year of profit in 2018-19

C H A I R M A N' S M E S S A G E

Our financial year 2018-19 was an interesting period of contrasts and challenges for

109
the aviation industry. While global passenger traffic was up through the year, it was

AED buffeted by shifting economic realities and geopolitics.

Demand for air cargo faced significant headwinds and, according to IATA, global
economic activity and consumer confidence weakened by March this year. The
Purchasing Managers Index (PMI) indicated falling global export orders since
September 2018. Political posturing and slow progress on pressing global issues,

bn
including several ongoing trade wars, Brexit and the refugee crisis, conspired to bog
down the global economic outlook even further.

GROUP REVENUE 2018-19

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ANNUAL REPORT
HH Sheikh Ahmed bin Saeed Al Maktoum,
2018-19 Chairman and Chief Executive
Emirates Airline & Group
| OVERVIEW
EMIRATES
DNATA
GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
Crude oil prices rose sharply in the first half of our
financial year, and then remained volatile. As a result, jet
fuel prices soared by 22% over our financial year. There
were significant currency fluctuations in India, Iran
and Brazil, and volatility and devaluations in Africa and
South America.
Although passenger traffic in the Middle East jumped
by 4.2% in 2018, it was down from the 6.9% growth
in 2017, marking the second consecutive year of
tempering demand growth. IATA believes this growth
deceleration reflects the impact of policy measures and
geopolitical tensions.
Competition in the aviation industry was stiff globally,
and more so regionally. Our regional competitors
constantly snapped at our heels, with a one-point
business plan to always undercut Emirates’ fares at all
costs. Unlike some, we must operate on a commercial
basis. We took a broad and fresh approach to our
traditional pricing strategies to avoid engaging in price
wars and to improve yield, even if it meant conceding
market share. This allowed us to continue
to invest in product and service excellence.
Both Emirates and dnata managed to ride these
challenging waves, thanks to two key factors: our
hub, centrally located on the map, is a global and
regional powerhouse; and our clear focus on our
long-term strategy.
Globally, major airlines strengthened their networks,
bought longer range aircraft to bypass hubs, enhanced
their inflight product and created better airport
experiences. Our response was to up our own game.
The Group invested AED 14.6 billion in new aircraft,
equipment, acquisitions, facilities, state-of-the-art
technologies, and employee initiatives. We enjoyed our
31st consecutive year of profit, earned record revenues
and maintained a robust cash balance.
OUR GROUP INVESTED
AED 14.6bn
IN NEW AIRCRAFT,
EQUIPMENT, ACQUISITIONS,
FACILITIES, TECHNOLOGY, AND
EMPLOYEE INITIATIVES.
We declared a dividend of AED 500 million to the Investment
Corporation of Dubai. Through the year, the airline focussed
on delivering what the customer has come to expect from
us: the unexpected. We invested in the latest aircraft, pinned
more destinations on our route network, created more
connections through partnerships, and delivered even better
experiences on the ground and on board.
At dnata, we continued without breaking stride, acquiring
new businesses, expanding our network globally,
investing in people, equipment and safety, and
consolidating our operations.
We tightened our cost discipline. Across the Group, we
streamlined our support services operations with new
technology, systems and processes. While Emirates’ overall
employee count declined and productivity improved,
dnata’s workforce increased by 10% to 45,000, mainly due
to acquisitions. Our total workforce grew by 2% to 105,286
employees, across our business, including our
120+ subsidiaries.
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EMIRATES

DNATA

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FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

The Emirates Group has been built by our committed,

professional and immensely talented employees. We
recognised their performance and spirit with more than
13,800 awards, and invested in upskilling our people
with cutting-edge training programmes. We celebrated
our female colleagues on Women’s Day, completed
another successful Dubai Fitness Challenge and
supported a variety of wellness initiatives.

We implemented a new personal data privacy policy

and adopted the European Union’s General Data
Protection Regulations (GDPR) as our standard
worldwide, not just in the EU. We resolved to treat
people’s privacy with respect, fairness, transparency
and integrity, honouring the trust they place in us. Our
Data Privacy Office liaises with regulatory bodies, sets
policies and guidelines, rallies internal stakeholders, and
coordinates training and awareness.

The Emirates Group’s workforce increased

by 2% to 105,286 employees
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EMIRATES
DNATA
GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
Both Emirates and dnata meticulously prepared for the
southern runway rehabilitation at Dubai International
airport (DXB) in April and May 2019. No question – this
is going to hit us hard, and we expect it to impact our
financial results next year.
The UAE’s 47th National Day on 2 December was a proud
occasion for all of us at the Group and for everyone in
the country as Emirates, Etihad, flydubai, Air Arabia and
Al Fursan took to the skies in unison to celebrate the
day and commemorate the legacy of the nation’s late
founding father HH Sheikh Zayed bin Sultan Al Nahyan.
It showcased the UAE’s aviation success story to the
nation and the world.
We are marking the countdown to Expo 2020 Dubai by
gearing up to attract 25 million visits and by building a
show stopping pavilion. Our 40 aircraft in the Expo 2020
livery fly across the six continents on our network, upping
awareness and anticipation. We launched a limited
edition collection of Expo 2020 themed A380 and 777
40
EMIRATES HAS
AIRCRAFT IN THE
EXPO 2020 LIVERY
aircraft models, and a series of podcasts and films The Emirates Group remains committed to Dubai,
inflight to educate our customers about the six-month our customers, employees and stakeholders. Our
event of global entertainment, inspiration and ongoing investments in our people, technology, and
unique experiences. infrastructure will help us sharpen our competitive
edge, ensure we are ready for opportunities, and stay
Emirates and Dubai Future Accelerators launched a sixth on course for sustainable growth.
cohort with seven teams dedicated to working exclusively
on the challenges put forth by the airline. We also
support and partner with Intelak, the first aviation, travel
and tourism incubator established in the UAE. Intelak
has boosted the country’s innovation ecosystem by
encouraging a number of young entrepreneurs to come
together and transform their ideas into reality.
HH Sheikh Ahmed bin Saeed Al Maktoum
Sustainability and the future of the planet are global Chairman and Chief Executive
issues close to our hearts, and we are acutely conscious Emirates Airline & Group
of our position to influence stakeholders and champion
advocacy. Our leadership team, our employees and our
brands are spearheading several initiatives internally and
with global partners to make an enduring difference.
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INFORMATION

LEADERSHIP
H H SH EI K H AH M E D B I N SI R T I M C L ARK GARY C HAPM AN
SAE ED AL M AK TOU M
President President
Chairman and Chief Executive Emirates Airline Group Services & dnata
Emirates Airline & Group

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EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

ADEL AHMAD AL REDHA THIERRY ANTINORI ABDULAZIZ AL ALI ALI MUBARAK AL SOORI NIGEL HOPKINS

Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President
Chief Operations Officer Chief Commercial Officer Human Resources Chairman’s Office, Facilities Service Departments
Emirates Airline Emirates Airline Emirates Group & Project Management and Emirates Group
Non-Aircraft P&L

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DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

E M I R AT E S

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FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION
EMIRATES IS THE WORLD'S LARGEST
INTERNATIONAL AIRLINE. YOU DON'T
JUST FLY WITH EMIRATES, YOU FLY BETTER.
THAT'S OUR BRAND PROMISE.

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| EMIRATES

DNATA

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FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates invested in its inflight

and on ground product to deliver
unforgettable experiences

P R E S I D E N T' S M E S S A G E
Emirates retained its pole position as the world’s largest international airline – crossing
63 billion ATKMs in 2018-19.

58.6
Despite cutthroat competition, our revenue increased by 6%. However, fuel and
currency volatility, as well as global trading conditions, conspired to reduce our
profitability and our profit margin significantly.

Our total operating costs increased mainly due to the sharp 22% upswing in jet fuel
prices, on top of last year’s 15% surge. Fuel now forms 32% of our operating costs, and
remains our biggest expense. We were also negatively impacted by the strengthening
of the US Dollar to the tune of AED 572 million, a swing of
AED 1.2 billion from the previous year.

Emirates SkyCargo bucked the trend and did us proud with a strong performance in
a highly competitive market with weak demand. The division contributed 14% of the
MILLION PASSENGERS CARRIED airline’s total transport revenue and played a role in expanding our network.

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270
175,000
2018-19 Emirates Skywards members
have flown and earned over 14%
32% 550 million Skywards Miles contribution of
share of fuel in on flydubai Emirates SkyCargo
our operating costs to the airline's
OVERVIEW
transport revenue

| EMIRATES
AIRCRAFT AS OF 31 MARCH 2019
DNATA

GROUP A330neos and A350s gives us the required flexibility.

FINANCIAL
INFORMATION
A330NEOs
AND A350s
ADDITIONAL
INFORMATION will bring flexibility
to our young fleet
AED 2m
revenue earned per
airline employee
Last year, we got smarter, more connected, and far
more inventive, both operationally and commercially.
We rationalised our routes further, and took a more
dynamic approach to deploying capacity to take the
best advantage of global seasonality in demand.
This optimised our fleet and network as we adjusted
frequencies during peak travel periods. Our dynamic
scheduling has been made possible by integrating
smarter operational intelligence with customer insights,
and close ties with airports and other partners.
The drive to revolutionise air travel and always be better
is hardwired into our DNA, and it enables us to deliver
unforgettable experiences at every touchpoint, every
time. In October, we introduced our bold new brand
promise Fly Better to the world, through a series of
marketing activities, including inspiring TV commercials
and our global sports sponsorship branding. We
reaffirmed our customers’ conviction that they can
expect product and service superiority - from the
moment they browse to book with us to the time they
say their lingering goodbyes.
7 A380s &
6 BOEING 777s
were added to our
fleet in 2018-19
Our Emirates-flydubai partnership has created
significant synergies by reducing route overlaps and
realigning schedules to common destinations. Customers
benefitted from greater global connectivity, schedule
flexibility, an integrated loyalty programme, and the
convenience of travelling on a single ticket with seamless
baggage handling.
In 2018-19, the two airlines jointly carried 3.4 million
customers on codeshare flights across 84 destinations.
This year, we will expand our codeshare network further.
Over 175,000 Emirates Skywards members have flown and
earned more than 550 million Skywards Miles on flydubai.
We are strong believers in the A380 programme, despite
Airbus’ decision to stop production in 2021. Our current and
future investments in the iconic Emirates A380, including
the introduction of Premium Economy in 2020, will continue
to wow our customers.
We have been reviewing our fleet mix options for some
time now, so converting some of our A380 orders into
In 2019-20, we plan to receive six A380s and retire eight
Boeing 777s, keeping our fleet strong and young. Our next
stop will be Porto in Portugal, where we will offer four weekly
services from 2 July.
Our employee numbers declined by 3% to 60,282, due to
natural attrition, reduced recruitment, and smarter ways of
working that led to productivity gains. Productivity remained
high at AED 2 million revenue earned per airline employee,
an 11% increase from the previous year. Proud, committed
employees – from our award-winning crew, lounge, check-
in and contact centre agents to all our specialists and
professionals who work behind the scenes – were unified by
our brand promise to create memorable travel experiences
and ensure our customers fly better with us every day.
As a business with a big conscience, we don’t just want our
customers to fly better, we also want to do better for the
planet and be good corporate citizens. Our close partnership
with United for Wildlife; our long-standing conservation
efforts at Dubai Desert Conservation Reserve and the
Emirates One&Only Wolgan Valley; and our extensive work
with underprivileged children globally through the Emirates
Airline Foundation are our sincere efforts to give back to the
community, and leave a lasting legacy for future generations.
At Emirates, we’re passionate about soaring higher,
flying better.
Sir Tim Clark
President Emirates Airline
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DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates’ First Class Private Suites on its

Boeing 777-300ER wowed customers worldwide

F LY I N G B E T T E R

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Despite severe challenges and several distractions, Emirates did not
lose sight of its long-term strategy or forget its role as a connector
of people, places and the planet. We made flying better for our
customers and delivered another year of trendsetting products and
services across our fleet and network. Our game-changing First Class
with fully enclosed Private Suites on our Boeing 777-300ERs continued

million+
to capture worldwide attention, as did our newly refreshed two-class
777-200LR with extra wide seats in Business Class.

PASSENGERS CONNECTED TO OUR

WI-FI ON BOARD LAST YEAR
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WE NOW OFFER OVER
1,000 MULTILINGUAL MOVIES

4,000
OVERVIEW
AS PART OF OUR

| EMIRATES

DNATA

GROUP

FINANCIAL
CHANNELS ON ICE.
INFORMATION

ADDITIONAL
INFORMATION

Movies, music and much more

ice, our award-winning inflight entertainment system,
continued to be at the forefront of innovation,
connectivity and entertainment. In 2018-19, over 12
million passengers connected to our Wi-Fi on board.
Over the summer, football fans passionately cheered
their national teams during the World Cup on board
175 aircraft equipped with live TV. This year, 50 more
aircraft will be retrofitted with live TV, providing
even more choice for customers to watch live sport,
breaking news and much more.

We now offer over 1,000 multilingual movies as

Live TV is available on 175 Emirates aircraft,
and 50 more will be retrofitted this year
part of our 4,000-channel selection on ice. Our
very own Food & Wine channel, launched this year,
gives customers a glimpse into how we create our
menus, and source the best artisanal ingredients and
beverages from global partners. We also launched
two dedicated TV promotional channels - Dining and
Entertainment and Attractions and Activities - to help
passengers plan unforgettable days out in Dubai.
21
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

INTRODUCED
DNATA
• Emirates Vintage collection
• High-tech airside buses
GROUP
• New 'Fly With Me' animal toys
NEW LUXURY • New Emirates Lounge in Cairo
FINANCIAL PRODUCTS • Home Check-in
INFORMATION in First and Business Class
• Bowers & Wilkins headphones
ADDITIONAL • Bulgari amenity kits
INFORMATION • BYREDO skincare

Five star dining among the stars

Dining is an experience not to be missed, both in
our lounges and on our flights. Before they fly, our
customers can easily browse the menus on their specific
flight, via our mobile app or our website. Our customers
on special diets can pre-book a delicious range of
choices from our menu. In January, also known to
vegans as Veganuary, we served over 20,000 plant-
REVAMPED based meals, which represents a 40% increase.
• Lounges in Rome,
New York JFK and DXB Lifting spirits
• Selection of wines and spirits
CELEBRATED inflight in all classes In April, we revamped the selection of our wines and
Festive occasions like Christmas, spirits inflight, across all classes, introducing a range of
Diwali, Easter, Eid, Holi, new premium brands as well as exclusive selections. We
Lunar New Year and Ramadan introduced the Emirates Vintage collection, a selection
with special menus and dishes
of fine wines that have been stored for 15 years, on
select routes in First Class.

Our First and Business Class customers also experienced

new luxury products that we developed in collaboration
with BYREDO skincare, Bowers & Wilkins, and our long-
22
THE EMIRATES GROUP
ANNUAL REPORT
2018-19
OVERVIEW
| EMIRATES
DNATA
GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
Emirates offers a five-star dining
experience in every class
standing partner Bulgari for the amenity kits, which we
regularly refresh.
During the busy summer period, we delighted children
with a new ‘Fly With Me’ animal toy selection and new
Lonely Planet activity kits. At Emirates Terminal 3,
we made people instantly happy with complimentary
ice-cream.
The on-ground experience takes off
Our customers’ on-ground experience received a
major boost with massive investments in new products
and solutions. With our new Home Check-in service,
launched in April, customers could check-in for their
flights and handover their baggage from the comfort of
their own home, hotel or office.
Through the year, our close collaboration with
stakeholders helped us launch trials for the world’s
first ‘biometric path’ that offers customers a smooth
and seamless journey at DXB. Using the latest
in biometric technology – a mix of facial and iris
recognition – our customers can check-in, complete
immigration formalities, enter an Emirates Lounge,
and board their flights, as they walk through different
airport touchpoints.
A brand new fleet of 40 high-tech airside buses now
ferry our passengers in ultra-comfort between terminals
and aircraft parked away from gates. By 2020, the fleet
will increase to 128 buses.
For our customers, our lounges are luxurious havens
in busy airport environments, and so we refreshed
the ones in Rome, New York JFK and DXB, and
inaugurated a new one in Cairo, marking our 42nd
dedicated lounge worldwide.
Our customers travelling through DXB faced fewer
delays associated with aircraft turnarounds, thanks to
our innovative new application, built in-house, called
the Hub Monitor. It helps our operational teams share
and monitor real-time information on all the activities
carried out to prepare an aircraft for departure.
We successfully rolled out AS Connect, a ground-
breaking, multifunctional application, across our
network, linking all customer facing areas at the airport
from check-in to baggage and reservations, enhancing
customer experience and effectively managing any
operational disruption.
We received the IATA Resolution 753 compliance
certification for our baggage operation in Dubai,
underlining our capability to diligently track bags
that flow through our hub for departing, arriving
and connecting customers. We developed Wasla, an
integrated baggage management system, to provide
full control of our hub baggage operations.
23
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 The Emirates-flydubai partnership is set to

evolve even more, offering customers a wider
network and seamless transfers

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

CONNECTING THE WORLD

119
Customers got more choice, connectivity, convenience and comfort as we
forged partnerships to expand our network, beyond our own routes.
Three new Emirates routes – London Stansted, Edinburgh, Santiago – the
relaunch of services to Sabiha Gökçen Airport, Istanbul, plus additional
frequencies to 14 points and upgraded capacity to six cities marked a busy
period of network expansion for us.

With the Emirates-flydubai partnership, our customers can access 61 more

destinations served by flydubai, with seamless connections at our Dubai
hub. Since December, our customers have direct access to 12 flydubai
destinations from Emirates Terminal 3, and both airlines continue to
INTERLINE PARTNERS IN further enhance inter-terminal transfers in Dubai for our customers.

102 COUNTRIES
24
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 O U R CO D E S H A R E PA RT N E R S

OUR CUSTOMERS

61
CAN ACCESS
OVERVIEW

AIR MALTA AIR MAURITIUS AL ASKA BANGKOK COPA

| EMIRATES AIRLINES AIRWAYS AIRLINES

DNATA

GROUP
MORE DESTINATIONS
FINANCIAL THROUGH FLYDUBAI'S
INFORMATION
NETWORK
ADDITIONAL FLYBE FLYDUBAI JAPAN JETBLUE JETSTAR
INFORMATION AIRLINES AIRWAYS AIRWAYS

JETSTAR ASIA JETSTAR KOREAN MAL AYSIA QANTAS

PACIFIC AIRLINES AIRLINES

During the year, we announced a new codeshare agreement

with Jetstar Pacific and signed an MoU with China Southern
Airlines. We enhanced our commercial strategic partnership
with South African Airways, further expanding our network
and the array of choices we offer to our customers.
SIBERIA SOUTH AFRICAN TAP PORTUGAL THAI AIRWAYS WESTJET
AIRLINES AIRWAYS INTERNATIONAL
Codeshare partner networks
Emirates takes pride in its extensive global network of
158 destinations in 85 countries/territories. While our
business strategy is to grow organically, we forge strategic
partnerships, agreements and codeshares to expand our
offering and benefit our customers.

LINHAS AÉREAS TGV AIR (SNCF) TRENITALIA We now have 23 codeshare partners and 119 interline
INTELIGENTES
S.A. (GOL) partners in 102 countries, extending our network by over
5,250 additional destinations.

For more information, log on to emirates.com

25
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates is the largest operator of

Airbus A380s and Boeing 777s

FLEET FOR THE FUTURE

In February, we ordered 40 A330neos and 30 A350-900s worth US$ 21.4 billion at list

6.1
prices in an agreement signed with Airbus, to be delivered from 2021 and 2024. We will
receive 14 more A380s from 2019 until the end of 2021, taking our total A380 fleet to
123 aircraft.

In 2018-19, we received 13 new aircraft – seven A380s and six Boeing 777-300ERs – and
retired 11 older aircraft, bringing our fleet count to 270 on 31 March 2019. The fleet
roll-over involving 24 aircraft was again one of the largest managed in a year, keeping
our average fleet age at a youthful 6.1 years.

YEARS We hit two fleet milestones in 2018-19: we celebrated 10 years of A380 operations last
August, and took delivery of our last Boeing 777-300ER on our order book. This makes it
our 146th 777-300ER and the 190th 777 aircraft delivered to us. It means one out of every

AVERAGE FLEET AGE eight 777 aircraft ever manufactured by Boeing has been delivered to us.

26
 4,900
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
IN 2018-19

13
WE RECEIVED
OVERVIEW

| EMIRATES

DNATA

GROUP
NEW AIRCRAFT
FINANCIAL
MAINTENANCE JOBS
INFORMATION

ADDITIONAL
We remain the world’s largest operator of both the
30 AIRCRAFT
INFORMATION REPAINTED
A380 and the 777 aircraft, and also the only airline in
21 A380s and
the world to have operated all the six variants of the 9 Boeing 777s
777 family. Our A380s continue to command awe and
stir excitement. We support governments and airports
with one-off services, and in 2018-19, we flew to five
cities: Beirut, Muscat, Islamabad, Riyadh and Accra, and 683,853
included temporary services to St Petersburg. IN-HOUSE
REPAIR ORDERS
Our teams are busy finalising the next generation 560,000 man-hours
MAINTENANCE
bespoke cabin designs of our Boeing 777Xs and the EFFORTS: 2.7 MILLION
Premium Economy on our A380s, which is scheduled for MAN-HOURS
delivery from 2020.

Keeping our fleet airworthy and in mint condition is

the job of our dedicated team of engineers. Last year, 254 ENGINE
the team successfully accomplished the first complete CHANGES
replacement of the entire landing gear on one of our
A380s. Our engineers converted 10 of our 777-200LRs 7,373
from a three- to a two-class configuration by investing ENGINE
16,000 man-hours and sourcing 2,700 spare parts from REPAIR
30 suppliers. ORDERS
74,000 man-hours

Our engineering team also launched four important 106 C-CHECKS

projects: iShare, in collaboration with Airbus, e-logbooks,
Safety Equipment RFID tracking and the Hub Monitor,
10 777-200LR
all of which give us excellent real-time visibility in converted from 3-class to
tracking and early identification of potential disruptors 2-class configuration
for timely resolution.

27
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 F L E E T I N F O R M AT I O N A S O F 3 1 M A RC H 2 0 1 9

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION A380-800 A330neo A350-900
In fleet: 109 On order: 40 On order: 30
ADDITIONAL On order: 14
INFORMATION

BOEING 777-300 BOEING 777-300ER BOEING 777-200LR

In fleet: 1 In fleet: 138 In fleet: 10

BOEING 777-200LRF BOEING 777-8X BOEING 777-9X

In fleet: 12 On order: 35 On order: 115
Options: 50

28
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

20 APRIL

WORLD TRAVEL AWARDS 4 OCTOBER

OVERVIEW
MIDDLE EAST 2018 AIRLINE ECONOMICS
• Middle East’s Leading Airline • Aviation 100 ‘Middle East & Africa Airline of the Year’
| EMIRATES • Middle East’s Leading Airline Brand
• Middle East’s Leading Business Class Airport Lounge 16 NOVEMBER
• Middle East’s Leading Cabin Crew
DNATA
FUTURE TRAVEL EXPERIENCE (FTE)
23 APRIL ASIA AWARDS 2018
GROUP • Best Customer Experience Initiative in the ‘Up in the Air’ category
BUSINESS TRAVELLER • Best Customer Experience Initiative in the ‘On the Ground’ category

FINANCIAL
MIDDLE EAST AWARDS 2018
• Best Airline Worldwide
INFORMATION
• Airline with the Best Business Class AIRLINERATINGS.COM
• Best First Class Airport Lounge in the Middle East AIRLINE EXCELLENCE AWARDS 2019
ADDITIONAL • Airline with the Best Cabin Crew • Best Long Haul Airline - Middle East and Africa
INFORMATION • Best Inflight Entertainment, third consecutive year
24 MAY

THE EMIRATES AIRLINE FOUNDATION 22 NOVEMBER

Is recognised by the UAE Ministry of Foreign Affairs and 2018 ULTRAS
International Cooperation (MoFAIC) for its outstanding • Best Airline in the World
humanitarian and outreach projects globally. • Best Airline in the Middle East

AWARDS
6 JUNE 10 SEPTEMBER NATIONAL GEOGRAPHIC
BIAL PINNACLE AWARDS 2018 THE FILIPINO TIMES AWARDS 2018 TRAVELLER AWARDS 2018
• Customer Choice Airline of the Year – International Full Service • Preferred Airline of the Year by Filipinos, second consecutive year
• Best International Airline
• Airline of the Year – International Full Service

12 SEPTEMBER BUSINESS TRAVELLER RUSSIA AND

INTERNATIONAL TRAVELLER 2018 FUTURE TRAVEL EXPERIENCE (FTE) CIS AWARDS 2018
READERS CHOICE AWARDS GLOBAL AWARDS • Best Middle Eastern Airline
• Preferred Airline • Best ‘Up in the Air’ Initiative (for First Class Private Suites)

18 JULY
TRAVEL MAGAZINE AWARDS 2018
25 SEPTEMBER • Best Long Haul Airline 2018
SKYTRAX WORLD AIRLINE AWARDS 2019 GLOBAL PASSENGER CHOICE
• World’s Best Inflight Entertainment, 14th year consecutively
• Best Airline Staff Service in the Middle East AWARDS 17 JANUARY
• Best Entertainment, second consecutive year 2018 BUSINESS TRAVELLER
5 SEPTEMBER
• Five-Star Global Airline Official Airline Rating AFRICA AWARDS
• Best Business Class, second consecutive year
CONDÉ NAST TRAVELLER READER'S 26 SEPTEMBER • Best International Long-Haul Airline
TRAVEL AWARDS • Best Airport Business Lounge (for Johannesburg).
• Best Business Airline GLOBAL FINANCE
• Best Airline – Long-Haul Holiday • ‘Corporate Innovator’ Middle East 2018
25 JANUARY

GRAND TRAVEL AWARD

• World’s Best Airline

29
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates SkyCargo’s network of 158

destinations, including 16 freighter-only routes,
create new trade routes and broaden markets

GROWING OUR WORLD

Emirates SkyCargo ferries freight that makes an enormous and positive impact on economies and the lives

2.7
of millions of people. We create new trade lanes and broaden existing markets. We connect producers with
consumers, and exporters with importers. Our combination of freighters and belly-hold capacity directly
connect not just major trade hubs, but also secondary markets to our vast network.

Supporting economies
We help create markets for growing economies. In Vietnam, for example, we worked closely with Vietrade,
and as a result, the export volume of fruits like rambutans and lychees has increased fivefold. Perishable
exports from Vietnam to Dubai touched a record 1,433 tonnes by end-March.

We support agricultural economies with our expertise in handling perishables, end-to-end cool-chain
facilities, and flexible freighter operations. We work with millions of farmers, growers and horticulturists to
explore international markets and auctions for their produce. Our daily freighter service from Nairobi, for
example, carries freshly harvested roses and flowers to Amsterdam, the world’s largest flower distribution
MILLION TONNES OF centre, helping support thousands of people who depend on the floriculture industry.
CARGO CARRIED
30
THE EMIRATES GROUP
ANNUAL REPORT
500 HORSES
2018-19 UNUSUAL CARGO CARRIED on 19 charter flights from AWARDS
Liege, Belgium to
31 May
Greenville-Spartanburg, USA
World Air Cargo Awards 2018
OVERVIEW
• Air Cargo Industry Achievement Award

| EMIRATES Quality Awards Italy

• Best Carrier ‘Flown as Booked’
DNATA SPECIAL CARS
1 DeLorean • Customer Satisfaction
1 Koenigsegg Agera RS1
GROUP
1 Aston Martin One 77 BIAL Pinnacle Awards
FINANCIAL
• Best International Cargo Airline 2018
INFORMATION

9 July
ADDITIONAL
DHL Global Forwarding 2018
INFORMATION
2,000 YEAR OLD • Carrier Award for Reliability and Excellence (CARE)
statue of Buddha – 2 metres
and 1,700kg - from
6 PIANOS Peshawar to Zurich for 20 November
including the oldest one
an exhibition Global Freight Awards
to have arrived in Australia
in 1788, to the UK • Cargo Airline of the Year

Helping save lives
Pharma customers trust us to transport vaccines and
critical medicines worldwide, securely and rapidly,
thanks to our fleet and facilities, including the world’s
largest EU GDP certified hub at Dubai.
In August, we carried the equivalent of 1.8 million doses
of vaccines from Italy to Brazil in 36 special purpose
containers on our freighter – a challenging shipment
that we handled with huge success. We introduced
21 pharma corridors in select destinations by working
with ground handling partners and key stakeholders
to maintain consistently high standards from origin
to destination for the handling of these temperature-
sensitive products.
Consumers were able to savour a diverse range of food:
salmon from Norway, mangoes from South Asia, meat
from Australia, fresh seafood from Sri Lanka, Scotland
and South Africa, dairy and chocolates from Ireland,
green beans from Kenya, lychees and rambutans from
Vietnam, strawberries from California, and wine and
cheese from France.
Connecting the world
We expanded our network with new freighter services
and belly-hold capacity, and we extended our reach into
regional routes through our extensive global trucking
network. At our hub in Dubai, our fleet of 49 trucks make
375 trips every day between DXB and DWC (Dubai World
Central), offering a 24x7 bonded trucking service.
Cainiao, the logistics arm of the Alibaba Group, signed an
MoU with us to support their growing operations.
In 2018-19, Emirates SkyCargo transported
51,714 tonnes of flowers
257,050 tonnes of food
2,039 horses
1,061 luxury cars
75,241 tonnes of pharma
397 charters for entertainment and sports events equipment
7,800 domestic animals with Emirates Pets (new product)
807 tonnes with Emirates AOG (new product)

185,951 tonnes globally by trucks

Flying food from farm to fork According to Cargo iQ, we are one of the largest air
cargo airlines on total shipments tracked, coupled with 327,807 tonnes between DXB-DWC by trucks
Emirates Fresh, our specialised portfolio of solutions
for perishable cargo, flew food fresh and on time. exceptional on-time delivery rate. No surprise then that

31
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates Skywards offers its members

exclusive and personalised experiences

M A K I N G L O YA LT Y C O U N T

The steady growth of Emirates Skywards, now the loyalty programme for Emirates and flydubai, over
the past 19 years stems from our focus on offering members value, choice, flexibility, and many more

24
ways to earn and redeem rewards. Our members spent their Miles on flights, hotel stays, shopping,
dining, humanitarian causes, and lifestyle experiences, including exclusive world-class sports and
cultural events sponsored by Emirates.

This year, we offered a true digital inflection with richer, engaging content and hosted the card
digitally on the Emirates App, making it eco-friendly and easily available. We rolled out two special-
purpose apps to enhance our frequent flyers’ destination experience. The Emirates Skywards Go, in
partnership with The ENTERTAINER, gives members access to thousands of 2-for-1 dining and leisure

million
experiences in more than 160 destinations. On Emirates Skywards Cabforce, our dedicated app for
taxi services, members can earn Miles on rides in over 800 cities worldwide.

Our members enjoyed seamless Wi-Fi connectively inflight, and personalised promotions on
SKYWARDS MEMBERS emirates.com, which we achieved by leveraging Big Data and predictive data modelling.

32
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA
1million TRANSACTIONS ON
UPGRADES AND
117 MILLION
Miles redeemed daily
400,000
customers used Cash+Miles

23%
of Skywards Miles
GROUP CASH+MILES earned through partners

FINANCIAL
INFORMATION
We launched an industry first: dynamic, personalised
23% GROWTH
ADDITIONAL flight upgrades and Cash+Miles offers for members who in product and
INFORMATION
book via emirates.com. partnership revenue

We introduced ‘My Family’ to offer family groups the

flexibility to consolidate their Miles for quicker rewards.
Family members could also adjust their contribution
towards the common pot. We also made it easier for
members to buy, transfer and extend the validity of
Miles online.
19 FINANCIAL
partners in 8 countries

We make our programme relevant by tailoring it around

the lifestyle and preferences of our diverse membership
base. Today, our members can earn and redeem Miles
at thousands of hotels and properties worldwide. Our
popular Cash+Miles initiative enables members to
redeem their desired benefits with just 2,000 Miles in 1 MILLION+ MEMBERS
their account. We expanded our members’ earning in 6 countries: Germany, UK, US,
Australia, India, UAE
opportunities with the launch of new partnerships with
The Dubai Mall, Dubai Islamic Bank, Al Masraf Bank and
Noor Bank in the UAE, SABB in Saudi Arabia, and Capital
One in the US.

In January, we opened our first-ever Skywards Centre in

Emirates Terminal 3, offering members a wide range of
support - from enrolment and activation to consultation.
AWARDS
19 February
11th Annual Loyalty Awards 2019
• Excellence in Management, second
consecutive year
33
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Emirates is the world's first airline to

introduce 3D seats and cabin models

ONLINE MARCHES ONWARDS

15
In the physical world, we take our customers places, but in the digital space, we go where
our customers take us. We make things easy and sync with our customers' choices and
preferences, which is why more users are engaging with us through our direct digital
channels, both web and mobile, than ever before.

We continued to invest in technology to give our customers a unique blend of the

digital and physical worlds, while getting the basics spot on. Travellers can experience
our signature services, even before they board our flights. We revamped the Emirates

million
Experience on our website and aligned the booking process across our mobile website and
apps, across all devices.

DOWNLOADS OF MOBILE APP We are the world’s first airline to launch 3D seat models using web-based virtual reality
technology, so customers can preview our superior onboard products and select seats.

34
THE EMIRATES GROUP
ANNUAL REPORT
ONLINE
2018-19

345m
CHECK-IN
43% of all check-ins
(>50% is on mobile)

OVERVIEW CUSTOMER
SATISFACTION
| EMIRATES
ONLINE USERS - Across all digital
+14% touchpoints: 4.4/5
>14m monthly
DNATA
active online users
- Online check-in: 4.6/5 PRO-ACTIVE APP
- Online booking: 4.4/5
NOTIFICATIONS, EMAILS,
GROUP
MOBILE APP SMS TO CUSTOMERS
>14m downloads (+40%)
FINANCIAL
>1.4m monthly active
INFORMATION
users (+40%)
>99.5% crash-free app sessions
ADDITIONAL
INFORMATION

Customers can now browse our app for thousands of movies,

music and shows on ice and create playlists before they fly.
These can then be synced from their devices to the onboard
personal seatback screens inflight for a seamless experience.

We enhanced our pre-flight communications and send

customers personalised messages which link to ‘What’s on
your flight’ on emirates.com. Here, customers can access
information on our dining options inflight, lounges,
APP RATINGS
- iPhone 4.6/5 chauffeur drive service, ice content and much more for
(UAE App Store) their specific flight.
- Android 4.5/5
(overall Play Store) >150,000
live chats per month, (+100%)
From boarding gate notifications to baggage tracking, we
keep our customers informed via app notifications, email and
sms throughout their travel. The popular Livechat feature has
ONLINE FLIGHT continued to grow in demand across our digital channels.
REVENUE
+10% Emirates Skywards members can now choose to be
automatically logged-in when coming to our direct digital
EMIRATES.COM channels, and enjoy a far more tailored experience. Logged
AVAILABLE IN in users on emirates.com have increased by 66% since the
ONLINE ANCILLARY 26 LANGUAGES
New languages added: launch of this new functionality.
REVENUE Vietnamese, Hungarian,
+28%
Norwegian We also continue to support more languages on our website
than any other airline, reflecting the needs of our global
customer base. 35
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

| EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

The unmissable Emirates brand revs up the action

and takes centre stage at major sporting events

S U P P O R T I N G P E O P L E A N D T H E I R PA S S I O N S

The Emirates brand is synonymous with sponsorships, culture and sports – from

9
football, rugby, cricket, tennis and golf to horseracing and Formula 1®. Our

OUR BRAND WAS VIEWED sponsorships bring the Emirates brand to life through a global approach and
consumer engagement. It creates the perfect platform to link us with people’s
passions across our network and demographics.

We create exclusive and high-end opportunities, including music and literary

events, for our Emirates Skywards members and loyal customers, and help bring

billion+
some of the biggest sports stars and cultural icons closer to fans and young talent.

One of our longest running partnerships is with Arsenal Football Club and the
Emirates Stadium. In March this year, the London-based club made their first visit
to Dubai since 1976 to play a friendly match against Dubai’s own Al Nasr Club as
TIMES BY PEOPLE WORLDWIDE part of their winter training break. They visited Dubai landmarks and met 60 lucky
WATCHING SPORTING ACTION children from the Arsenal Soccer School.

36
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW
490 MILLION
TV viewers throughout
the F1 season
| EMIRATES

DNATA

GROUP 4TH MOST VISIBLE BRAND

32.7million
on social media
FINANCIAL
INFORMATION 977 EVENTS
489,678 hours branded TV coverage
ADDITIONAL US$ 5.7 billion media value
INFORMATION

OUR SOCIAL FAN BASE

10 million on Facebook
4 million on Instagram DEDICATED TV AUDIENCE AT THE
1 million on LinkedIn
RYDER CUP IN PARIS

We renewed our partnership for a further five years with
Formula 1®, which is a truly global sponsorship that
attracts well over 100,000 people for each race and over
490 million TV viewers through the season.
As a partner of the PGA European Tour, Emirates
was front and centre at the Ryder Cup in Paris with a
dedicated TV audience of 32.7 million and 3,947 hours
of broadcast coverage generating over US$ 10 million in
media value.
Emirates was a key partner to the Middle East’s UAE
Tour Cycling Race. As the official airline for the ICC
Men’s Cricket World Cup 2019, we proudly revealed our
themed livery on our A380, bringing the tournament to
life, particularly in the nine participating nations that we
serve. We also refreshed our Arsenal and Real Madrid
themed liveries on our A380s with action images of the
clubs’ top players.
We are committed to expanding the art and cultural
scene in Dubai. We are the title sponsor of the Emirates
Airline Festival of Literature, the Middle East’s largest
celebration of the written and spoken word that brings
people of all ages together with international authors
to promote education, debate and reading. For the
11th edition of the festival in March, we flew 182 top
international authors to Dubai, for a nine-day event
embracing more than 220 sessions.
Over the course of 14 years, the Emirates Airline Dubai
Jazz Festival has invited hundreds of acts from all over
the world – legends, divas, and pop artistes to perform
for more than 500,000 fans. Dubai’s critically acclaimed
two-day music festival RedFestDXB, now in its 6th year,
attracted thousands of music lovers and festival goers
who danced all night long to some of the world’s best
artists and DJs.
In 2018-19, 9 billion+ people worldwide saw our brand
during sporting action, while 977 events generated
489,678 hours of dedicated branded TV broadcast
coverage with a media value of US$ 5.7 billion.
While sponsorships is an important pillar of our brand
marketing efforts, our focus has always been consumer-
centric. We communicate with our diverse audience
across geography, gender, age, nationality and culture
using data, customer insights and a multi-channel
approach to ensure they receive relevant, practical and
timely information based on their preferences.
Emirates is now the world’s most followed airline on
Instagram, LinkedIn and YouTube. We produced well
over 300 pieces of content this year, covering everything
from the launch of new routes, our vegan meal offering
and changing the landing gear on an A380 to marriage
proposals inflight. We continued to build awareness and
interest in topics relating to our products and services,
our people, our sponsorships, our work with partners
to progress the aviation industry, and our participation
in world events like World Environment Day and
International Women’s Day.
Some of our content went viral and was picked up by
mainstream media worldwide. 37
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

d n a t a

38
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ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION
DNATA IS ONE OF THE WORLD'S
LARGEST AIR SERVICES PROVIDERS,
AND OUR VISION IS TO BE THE
MOST ADMIRED.

39
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

dnata makes the aviation world go

around, touching customers’ lives at
one or more touchpoints

P R E S I D E N T' S M E S S A G E
dnata’s global network includes ground handling, cargo, catering and travel. Our
45,000 employees form a chain of customer touchpoints, each contributing to our
vision of being the world’s most admired air services provider.

320
As we are conducting safe aircraft turnarounds on the runways of DXB, the world’s
busiest international airport, we are also serving up authentic, regional cuisine
onboard our 13 Chinese airline customers in Australia, shipping supercars to Europe,
and booking bucket-list holiday experiences across the world. Day in and day out,
dnata provides the support, infrastructure and expertise needed to help the travel and
aviation industries operate safely and efficiently.

We never lose sight of the fact that, in many parts of our business, our customers
have customers. So our performance is integral not just to our reputation, but also
to theirs. Keeping the promises our customers make is our central mission – whether
you are a global airline promising your passengers a superior inflight experience or a
AIRLINE CUSTOMERS parent promising your kids an exciting holiday, we are here to help you deliver.

40
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA
AED 700m
INVESTMENT IN OUR
GLOBAL PRESENCE
• 127 airports
• 37 countries across 6 continents
120 MILLION
passengers
helped annually

INFRASTRUCTURE, INNOVATIVE
GROUP TECHNOLOGY AND OUR PEOPLE
AED 11.5bn
total transaction value
FINANCIAL
INFORMATION
While 2018-19 was our most profitable year on record, in Travel
70.9 MILLION
meals uplifted
we benefitted from a significant income boost due to
ADDITIONAL the divestment of our 22% stake in the Hogg Robinson
INFORMATION
Group. Without this one-time transaction, our profits
would actually have fallen by 15%. While that may have
been predictable given the many challenges facing our
industry in the last year, it is a useful reminder that we
45,000+ 698,000+ FLIGHTS
need to continuously find better, smarter, safer ways employees handled annually
of working.

So, as the next 12 months roll out, we will keep on

investing wisely in people and technology, and assessing
our processes, our agility and our structure to ensure
we are running the business the right way – being fully
aware that the concept of ‘the right way’ may look very
different year on year. Despite the challenges, we were
still able to grow our revenue by 10% and our cash
balance by 4%. We invested AED 700 million back into
the business, particularly in Australia, Canada, Ireland,
Pakistan, Switzerland, the UAE, the UK and the US.
We looked at where we need to restructure to grab
opportunities and respond to industry challenges, and in
Asia Pacific we now have a regional CEO who oversees
operations at 10 airports in Australia, the Philippines and
Singapore, managing a total workforce of 6,000 people.
Our consistency in delivering world-class safety and
service last year helped us win more than 100 key
contracts across our business. It has also cemented our
relationships with our current customers and partners
– a factor that has in turn led to significant business
growth. For example, when British Airways planned
to start a service out of Nashville, they turned to us
to establish ground handling and catering operations
there. We invested in equipment, created 50 new jobs
and today serve five flights per day in Nashville, our
14th US location.
The bedrock of our growth strategy is making smart
and organic acquisitions. We are not aiming for global
domination, or creating the world’s largest air services
network – we look for opportunities with businesses
that are aligned to our values, have strong management
teams, good track records on safety and standards, and
are willing to work the dnata way. This year we invested
more than AED 600 million alone in smart and strategic
acquisitions in Australia, Germany, Italy, the US, and
the UAE.
Safety and sustainability will remain our top priorities
this year. Safety, because we believe that everybody
should return safely to their families at the end of their
shift. We will not compromise at all when it comes to
establishing a safe workplace and safe practices, and
making the investments required to make that happen.
Sustainability, because the future of the industry, and indeed
the world, depends on it. We are making great progress on
minimising waste, cutting out single use plastic and reducing
energy and water consumption across our facilities. We have
also just signed a MoU with the University of Pretoria to
support wildlife research and rescue, under the umbrella of our
corporate responsibility programme, dnata4good.
We have finished the year in a good position – proud of our
growth and achievements, yet armed with a practical to-do list
that will keep us on our path of ongoing improvement. Across
our employee ranks, we are fortunate to work with people who
are passionate about aviation, safety conscious, innovative
and service oriented and together, we are looking forward to
another great 12 months.
Gary Chapman
President dnata & Group Services 41
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

dnata introduced common Safety Performance

Indicators across its business for transparency,
benchmarking and continuous improvement

S E C U R I N G S A F E T Y G LO B A L LY

84
Safety is a fundamental, uncompromising tenet of our business globally, and one of
our six organisational values. We promote a safe culture through systemic processes,
technology and leadership communications.

We launched our Stop observation programme with a clear message: if you see
something, say something. It was designed with simplicity and ease in mind, and proved
so successful that we are set to launch a mobile app later in the year. A safety stand down
day for forklift activities across our network raised awareness following an incident, and
achieved a significant reduction in forklift incidents. Our leadership team raised their
visibility at safety tours globally.

STANDARDS AND
GUIDELINES ISSUED
42
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

45,000
OVERVIEW employees can access Safety Hub
43
EMIRATES
trained investigators

| DNATA

GROUP 44,839
1,600 observations under the

5,300
Report Only
FINANCIAL
INFORMATION incidents raised
STOP programme
IN 2018-19

ADDITIONAL
INFORMATION

ACTIONS WERE UNDERTAKEN AS PART

OF THE STOP PROGRAMME

We continued to implement our Integrated
Management System and to focus on incident
management, reporting of incidents and near misses,
investigations, and tracking actions. We trained
employees on our Safety Hub to ensure data is
accurate, incidents are reported and classified properly,
and we learn from our investigations. In November,
our new incident classification Report Only on the
dnata Safety Hub captured even minor incidents and
near misses.
We introduced common Safety Performance Indicators,
both leading and lagging, across the business
for transparency, benchmarking and continuous
improvement. Our agreed risk management framework,
coupled with the identification of top 10 risks across
our businesses, helped us to prioritise our investments
in safety.
Our people, our culture
Our Hearts and Minds programme is all about, and
for, our people. We implemented several initiatives to
ensure alignment and to reinforce our organisational
culture globally.
Our culture surveys continued to be rolled out across
the business – the third time for some locations. As
of 31 March, 75% of our wholly owned businesses
worldwide had participated in the survey, with the rest
scheduled to do so this year.
It was a journey of cultural discovery for us
worldwide. We took a broad look at the way we do
things across our network, with safety permeating
everything we do. Some key aspects where we
exceeded expectations were: we celebrate our people
worldwide; we love the aviation industry, even though
we do not fly planes; we know safety is a priority and
understand when it is time to speak up.
We have set action plans in all locations that have
completed the survey, and in some we have established
KPIs to track progress. We continue to implement and
embed Just Culture across the business. Just Culture
means that our people are not punished for mistakes
they make as a result of lack of experience or training,
but the organisation will not accept negligence,
intentional violations of safety procedures or company
policies, or destructive actions.

43
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

marhaba welcomed thousands of travellers in

Dubai, Melbourne and Karachi, and plans to
expand its network further

B E I N G O U R B E S T A T T H E W O R L D’ S B U S I E S T

Dubai International (DXB) remained the world’s busiest international airport with
88.6 million passengers going through its doors in 2018-19. It made dnata’s
challenges – space, size, scope, slot and resource constraints – even more acute.
We turned to technology, innovative solutions and to our teams to minimise these

12,000+
challenges and continue to offer our exemplary service to both airlines and travellers.

We acquired a majority stake in DUBZ, a baggage technology and logistics company

that emerged from Dubai’s incubator programme Intelak. Arriving passengers at DXB’s
terminals 1 and 2 can get their baggage delivered, and those departing can check-in
their baggage and receive boarding passes anywhere in the city. It makes travel
stress-free for passengers, and minimises the pressure on airlines and the terminals.

EMPLOYEES IN DXB AND DWC

44
THE EMIRATES GROUP
ANNUAL REPORT
2018-19
DXB
• 542,855 tonnes of cargo handled   GROUND SERVICE
• 200,996 flights handled
OVERVIEW
EMIRATES 50
| DNATA
GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
DWC
• 184,154 tonnes of cargo handled
• 9,518 flights handled
We strengthened our position in the freight forwarding
industry, both regionally and globally, by acquiring
more shares to become the owner of Dubai Express,
Freightworks LLC and a 51% majority stakeholder of
Bolloré Logistics LLC, UAE that operates in 106 countries.
Last year, we focused on realigning our business to
address customer demands, both above and below the
wing. We launched a hotline for customer feedback
and issues management, manned by a team that works
collaboratively with key airport stakeholders. Using Net
Promoter Score as a key performance measure of our
customer relationships helped us foster employee and
customer engagement.
Data science is helping our teams review the performance
of the business and our employees, and is reducing
deviations between planning and execution. We are now
researching how we can better move bags around the
airport and forecast numbers for special assistance. To
optimise our operations of 12,000+ employees at both
DXB and DWC, we launched a new cutting-edge resource
150 ECO-FRIENDLY
EQUIPMENT MEANS
80% reduction in carbon footprint
47 tonnes of CO2 saved
Toyota Prius Hybrids
as ramp cars
management system that supports AI, autonomous
vehicles, and advanced analytics.
The cargo team invested in technology to achieve a more
efficient flow of operations. Our new One Cargo tool, a
first for ground handlers, digitised our customers’ booking
process and service, ensuring a seamless experience at
delivery bays. One Cargo connects our global operations
on a single technology platform.
We automated our appointment and dock management
to unify our engagement with freight forwarders. We
have also trialled drones in the warehouse to identify and
monitor shipments with 100% accuracy.
Choosing green or hybrid options is a prime
consideration in all our Ground Support Equipment (GSE)
fleet planning. We replaced the majority of our diesel
powered forklifts with electric alternatives, and continued
to refurbish our GSE fleet to extend their life-cycles,
reduce waste and update them to the latest safety and
quality standards.
AWARDS
11 October
Aviation Business Awards
• Ground Support Services Provider
of the Year, ninth time
IN 2018-19, MARHABA SERVED
365,162
MEET-AND-GREET CUSTOMERS
Extending our warm Arabian hospitality
marhaba, our airport hospitality brand, set out its
global ambition with the creation of a design playbook
for consistency in our international lounges. An AI
component on our marhaba website now empowers our
team to deliver faster and swifter responses.
We served the one millionth customer of 2018 in July and
celebrated the one-year anniversary of our Karachi and
Melbourne lounges. We welcomed 41,300 passengers
and served as many world-class meals in our Melbourne
lounge through the year. Our new, well-appointed lounge
in Singapore T3 is set to open in May 2019, and will be
the 10th in our network.
45
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

dnata expanded its international

airport operations business across
the Americas and Europe

A I R P O R T O P E R AT I O N S S PA N N I N G T H E G L O B E

25
dnata’s international airport operations evolved through acquisitions, partnerships and organic
growth as a result of new contracts, services offered in new airports, and customers expanding
their operations. We won over 100 new contracts mainly in key markets, including Australia,
Canada, Italy, the US, and the UK, and coupled it with solid customer retention.

We built tailor-made cargo solutions across new facilities in Dallas, London Heathrow, Adelaide
and Karachi, and implemented bespoke refurbishments in Singapore and Amsterdam. We
invested at London Gatwick and Manchester to meet our customers’ growth, and opened new
cargo facilities in Islamabad and Multan airports.

This year, we will start building dnata City East, a new bespoke facility in London Heathrow,
YEARS OF INTERNATIONAL that will give airlines access to industry leading technology and additional warehouse space at

OPERATIONS the UK’s busiest airport.

46
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 AWARDS
488,225 AIRCRAFT
handled, up 9% 29 April
2019 Air Cargo News Awards
• Ground Handler of the Year,
OVERVIEW for the fifth consecutive time
USA – A KEY MARKET
EMIRATES • US$ 35 million invested since 2016
• 45 new contracts in 2018-19
| DNATA • 60 airlines
2.4 MILLION • 20 airports
tonnes of cargo handled, up 1% • 3,190 employees
GROUP

FINANCIAL
INFORMATION

14,000 m2
ADDITIONAL
INFORMATION 3 AIRPORTS ADDED
95 AIRPORTS • Brussels: EUR 8 million investment
SERVED • Los Angeles: US$ 8 million investment
in 15 countries • Nashville: US$ 1.4 million investment

NEW CARGO CENTRE AT BRUSSELS AIRPORT

It will expand our capacity at Heathrow across eight facilities
and build on the multi-million pound investments at the
airport in the last five years.
At Manchester Airport, our second biggest operation after
Heathrow, we are working on a project to develop the new
dnata City North cargo complex.
Our significant investments in our pharma facilities mean that
we offer more handling capability than any other company in
the UK, the Netherlands, Australia and Singapore. A planned
EUR 8 million investment in building a 14,000 m² cargo centre
at Brussels Airport announced our arrival in Belgium. It
proved to be a major capacity boost in the Benelux states
for our customers.
In Italy, we increased our share in Airport Handling SPA,
a Milan-based ground handler, to 70%. We added four
new customer airlines in Amsterdam. At Zurich Airport, we
were re-awarded the ground and cargo handling licence
In North America, we launched ground and cargo
handling at Los Angeles, began passenger services at
New York JFK, and more than doubled our operations at
Toronto, where we began handling for Air Transat. We
opened an innovative cool-chain perishable cargo
facility in Dallas and employed experts skilled in
maintaining temperature integrity during the entire
air transport journey.
Gerry’s dnata in Pakistan celebrated its silver anniversary
on 1 July, marking 25 years of our international
operations. We are now the country’s largest cargo and
ground handling business, operating at seven major
airports. We invested in a new state-of-the-art import
cargo facility that contains the first automated storage
and retrieval system in Pakistan.
Industry certifications underline corporate compliance
and excellence. Our ability to provide safe and reliable
pharma handling services globally was recognised with
We received ISAGO*** Station Accreditations at Manila, Cebu
and Clark airports in the Philippines following successful
audits. Gerry’s dnata became the first ground services
provider to achieve ISAGO registration in Pakistan.
Our new global cargo management system One Cargo is
set to automate our key business and operational functions,
including ULD management, quality monitoring and mail
management, through real-time info. By 2020, more than
5,000 employees across 27 stations in 10 countries, from the
US to Australia, will use One Cargo.
* Center of Excellence for Independent Validators
in Pharmaceutical Logistics

through to 2025, allowing us to serve our customers IATA’s CIEV* Pharma certification in Dubai and Toronto, ** Good Distribution Practice
without interruptions. and GDP** certification in London and Zurich. *** IATA Safety Audit for Ground Operations 47
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

dnata Catering diversified and

expanded its business globally

S P I C I N G U P T H E W O R L D O F C AT E R I N G

70.9
As one of the world’s leading airline caterers, we extended
our global footprint through strategic acquisitions and new
facilities in Australia and North America. New and expanded
partnerships, increased capacity and performance, particularly
in the UAE, Romania, Czech Republic and Italy, led to significant
revenue growth.

We enhanced our operations across the globe, following

expanded partnerships with American Airlines, British Airways,
Etihad, and other key customers. On the inflight retail front,
which includes food, beverage and duty-free, we partnered
with new customers and extended existing relationships in

MILLION MEALS UPLIFTED Australia and Czech Republic.

48
THE EMIRATES GROUP
ANNUAL REPORT AWARDS
2018-19 9 April
110 PAX International
60 LOCATIONS CUSTOMER
• Airline Caterer of the Year, North America, 2019
12 countries airlines

OVERVIEW

EMIRATES
7,000+
2 NEW ACQUISITIONS employees
| DNATA
• Qantas Catering
• 121 Inflight Catering
GROUP
600 CHEFS
OUR CANBERRA FACILITY HAS THE
FINANCIAL

60,000
INFORMATION CAPACITY TO PRODUCE MORE THAN
ADDITIONAL 40+RESTAURANTS
INFORMATION cafes, bars and lounges
AUSTRALIA
IS OUR
BIGGEST
MARKET
45 airlines
9 airports MEALS A MONTH
15 facilities

We also invested in our crew incentive and
engagement programme, point-of-sale technology,
and sustainable packaging and product design. In
the UAE, we saw strong performance at our Sharjah
kitchen, delivering significant improvement for our
flagship inflight retail customer Air Arabia.
In Australia, we doubled the size of our operations by
acquiring Qantas’ catering businesses - Q Catering
and Snap Fresh. The acquisition added nearly 2,000
employees and combined our global network
strength with Qantas’ domestic catering expertise. We
inaugurated a 2,000 m² state-of-the-art catering facility
in Canberra with an investment of AU$ 6.5 million and
capacity to produce more than 60,000 meals a month
for commercial and charter airlines.
In North America, we laid a strong foundation for our With such massive production schedules, consistency
regional expansion strategy. We launched operations in is key to maintaining world-class quality standards
New York and Nashville, through the acquisition of 121 and customer service. We achieved this by rolling out
Inflight Catering, a leading airline and VIP caterer. We an impactful employee initiative called ‘5 Winning
will commence operations in purpose-built facilities in Ways’, developed in-house.
Boston, Houston and Vancouver in the first quarter of the
new financial year, with more facilities being built across Our highly experienced chefs have served in the
the US. world’s leading hotels and restaurants and, together
with skilled teams, deliver authentic international and
We operate more than 40 F&B outlets and lounges in ethnic cuisine that invoke genuine emotion and leave
Australia, the UAE, the US, Jordan, Bulgaria and Romania. a lasting impression.
We expanded our F&B operations in Romania and in the
US, where we now operate two off-airport restaurants.
Our relationships with global restaurant and café brands
include illy, Brioche Dorée and Burger King. As a leader
in VIP catering, we are the preferred partner for many
operators and charters worldwide.

49
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

dnata’s Travel division made strategic

acquisitions to gear up for the future of travel

T R AV E L E X PA N D S I T S H O R I Z O N S

AED
Our Travel division had a busy year across its diverse portfolio of leading travel brands, which offer

11.5bn
seamless and holistic experiences to individuals, corporates and the travel trade. We overcame tough
trading conditions and operating challenges, and we diversified globally.

We announced our arrival in Germany with the acquisition of Tropo, a dynamic tour operator selling
through online travel agents (OTAs) and more than 7,000 independent travel agencies. This expanded
our travel network in Europe, and created further synergies with our other travel businesses.

We signalled our commitment to innovation when we acquired a majority stake in BD4travel (Big Data
for travel), an award-winning tech company, which provides AI driven IT solutions in the travel sector.
BD4travel worked with Travel Republic on several initiatives and introduced a recommender widget
TOTAL TRANSACTION VALUE to help customers find the right holiday online. This increased conversion rates by over 2% pts, and

FOR THE FIRST TIME average booking value by 15%.

50
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

40
EMIRATES HOLIDAYS OPERATES IN

OVERVIEW

EMIRATES

| DNATA
MARKETS GLOBALLY
GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Our contact centre operations grew significantly. We
completed the construction of our second contact
centre facility in Clark, Philippines and the purchase of a
facility in Belgrade, Serbia. We increased the scale of our
operations for the Group’s medical services team, and
signed a five-year agreement with Etihad Airways to
run its contact centre operations globally. We continued
to serve our travel brands with our 2,500 strong team,
now based across 14 locations in the UAE, Serbia, the
Philippines, India and the UK.
The e-commerce unit and the call centres continued to
deliver, and the business grew four times bigger than it
was just two years ago.
Our bed-bank Yalago completed its first full year of
trading, offering competitive rates to travel brands via
a portal or API connection. Featuring direct contracts in
600 destinations across 90 countries, the Yalago team
helped us hit the milestone of delivering over 1,000
3rd party bookings in one day.
Emirates Holidays now operates in almost 40 source
markets globally and continues to strengthen its position
as the airline’s leisure-focused tour operator. Over the
past three years, we have witnessed strong growth year-
on-year, achieving an overall 34% uptick last year and a
sturdy show in all our key markets. As the largest source
market, the UK experienced the greatest growth at 56%,
while the UAE, our second largest, grew at 27%.
Our focussed strategy to be the largest operator for
destination Dubai successfully increased tourist numbers
by 32%, with the city’s overall contribution rising to 59%
in the destination mix. We launched services in new
high-potential and strategic growth markets, Ireland and
China, and ramped up business operations in the US. This
year, we will add Scandinavia to our network.
Our Dubai-based B2C dnata Travel sustained its growth
and bucked market trends. The retail arm increased its
contribution and expanded its footprint, proving its
resilience and value.
We recently launched Rehlaty, extending our brand family in
the UAE. Created by a team of travel loving Emiratis, Rehlaty –
which means journey – specifically serves the needs of Emiratis
with customised packages and recommendations based on
first-hand travel experiences.
We have entered a strategic partnership with Dubai’s
Department of Tourism and Commerce Marketing to deliver
a B2B marketplace for Dubai tours and attractions. The
platform will connect Dubai attractions with international
resellers, offering greater distribution capability and access to
new markets.
Sustainability is a hot topic across our businesses, particularly
at Arabian Adventures and Destination Asia, which are
running initiatives to reduce the impact of travel on the
environment. As an example, Arabian Adventures reduced
single plastic use by 77% and Destination Asia saved 28,000
plastic bottles from going to landfill last year.
51
THE EMIRATES GROUP
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2018-19

OVERVIEW

EMIRATES

| DNATA

GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

AWARDS

ARABIAN ADVENTURES TRAVEL 2 19 OCTOBER

• TripAdvisor Certificate of Excellence 24 MARCH NORTHERN IRELAND TRAVEL
TTNG CONFERENCE 2019 AWARDS 2018
• Long haul Operator • Best Worldwide Tour Operator 2018

DESTINATION ASIA 5 OCTOBER

8 MAY
• Singapore Tourism Awards 2018
• Best Meetings/Incentive Organiser
10 SEPTEMBER
ADVANTAGE TRAVEL TRAVEL BULLETIN STAR
PARTNERSHIP AWARDS 2018 AWARDS 2018
• Star Agent Friendly Operator
• Leisure Partner of the Year 2018
• Star Long Haul Operator

17 SEPTEMBER
GOLD MEDAL UK TTG AWARDS 2018
17 JANUARY • Supplier Sales Team of the Year
TRAVEL WEEKLY GLOBE
TRAVEL AWARDS 1 NOVEMBER
• Best Long Haul Tour Operator SPAA AWARDS 2018
• Best Consolidator • Independent Long Haul Tour Operator of the Year 2018
• Consolidator of the Year 2018

52
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

| DNATA
GOLD MEDAL AND TRAVEL 2 BD4TRAVEL TRAVEL REPUBLIC
17 SEPTEMBER 17 JANUARY 24 JANUARY
TTG TRAVEL AWARDS TRAVEL WEEKLY GLOBE TRAVEL TRAVOLUTION
GROUP • Supplier Sales Team of the Year
AWARDS 2019 • Best for Holidays
• Innovation in Travel
FINANCIAL 10 SEPTEMBER
INFORMATION
TRAVEL BULLETIN STAR AWARDS
• Star Agent Friendly Operator DNATA TRAVEL
ADDITIONAL BD4TRAVEL & TRAVEL REPUBLIC 27 FEBRUARY
INFORMATION 24 JANUARY CONDÉ NAST TRAVELLER MIDDLE EAST
TRAVOLUTION AWARDS 2018 • Favourite Travel Agent
TROPO • Best Technological Innovation
28 JANUARY 25 APRIL 2019
DISQ (GERMAN INSTITUTE FOR WORLD TRAVEL AWARDS
• UAE’s Leading Travel Agency 2019
SERVICE QUALITY) TRAVELBAG • Abu Dhabi's Leading Travel Agency 2019
• Best Travel Website in Germany
28 NOVEMBER
BRITISH TRAVEL AWARDS 2018
• Best Large Company to Australasia
IMAGINE CRUISING • Best Large Company to Southeast Asia DNATA AIRLINE SERVICES
• Best Large Company to USA, Bronze 25 APRIL
10 DECEMBER • Best Large Company to Middle East, Bronze
WORLD TRAVEL AWARDS
CLIA AWARDS 2018 • Best Large Company to Indian Ocean, Bronze
• Middle East’s Leading Airline GSA 2019
• Innovation Award

19 NOVEMBER

TRAVOLUTION AWARD 2018 NETFLIGHTS DNATA CORPORATE TRAVEL

• Best for Cruising FEEFO 25 APRIL
• Gold Trusted Service Award 2019
24 JANUARY
WORLD TRAVEL AWARDS
• Middle East's Leading Corporate Travel Company 2019
UK CRUISE AWARDS 2019
• Princess Cruises - Partnership Development Award
• Cunard highly commended outstanding contribution EMIRATES HOLIDAYS
28 NOVEMBER
BRITISH TRAVEL AWARDS
• Best Holiday Company to the Middle East 2018 – Overall Winner
• Best Luxury Holiday Company 2018 – Overall Winner
• Best Holiday Company to Southern Asia – Overall Winner
• Best Holiday Company to Southeast Asia – Overall Winner
• Best Holiday Company to Australasia – Overall Winner
• Best Family Holiday Company 2018 Winner – Medium
• Best All-inclusive Holiday Company 2018 Winner – Silver
• Best Holiday Company to the Indian Ocean 2018 Winner – Silver

53
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

T H E E M I R AT E S G R O U P
Our passion for our planet

54
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION
SUSTAINABILITY AND THE
FUTURE OF THE PLANET ARE
GLOBAL ISSUES CLOSE TO OUR
HEARTS, AND WE ARE ACUTELY
CONSCIOUS OF OUR POSITION
TO INFLUENCE STAKEHOLDERS
AND CHAMPION ADVOCACY.

55
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 The Emirates Group is committed to

conserve wildlife and biodiversity, and
combat illegal wildlife trade and transport

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

W E A R E PA S S I O N AT E A B O U T P R OT E C T I N G W I L D L I F E

5
Emirates is committed to using its global brand power to uphold world agreements,
be vigilant during cargo acceptance, and to raise awareness and direct funds into
conservation. We have zero tolerance on carrying banned species, hunting trophies or
any products associated with illegal wildlife activities.

Our ground handling colleagues are trained in IATA’s Live Animal Regulations and our
internal policies on carrying wildlife. Our frontline employees are trained to recognise
and report suspicious cargo. We have established a dedicated reporting channel
to empower our people and partners to stop illegal trade by flagging confidential
information that can protect endangered species. We have rolled out poster
A 380s FEATURE ANIMALS campaigns across the organisation to create awareness.

THREATENED BY POACHING
56
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 KEY MILESTONES

7,000
THERE ARE

OVERVIEW

EMIRATES

2015
DNATA
• Became a partner of ROUTES (Reducing Opportunities for
ENDANGERED SPECIES Unlawful Transport of Endangered Species) to combat illegal
| GROUP
IN THE WILD TODAY wildlife trafficking.
• Announced support for United for Wildlife with a wildlife decal
FINANCIAL on two A380s, and introduced a ban on carrying hunting trophies
INFORMATION made from elephant, lion, tiger and rhino.

ADDITIONAL
INFORMATION
Five of our A380s feature animals threatened by
poaching, helping to raise awareness among the millions
of passengers we carry every year across our network.
We engage our customers in the discussion by regularly
featuring interviews, wildlife programmes and films on
ice, our inflight entertainment system, and articles in
Open Skies, our inflight magazine.

Safeguarding wildlife is at the heart of our global

dnata4good community, which actively engages and
supports wildlife conservation and nature campaigns to
protect biodiversity and maintain balanced ecosystems.

Recently, dnata signed an MOU with the University of

Pretoria, South Africa to support its wildlife research
and rehabilitation projects. We will collaborate with the 2016
university on: Became a founding signatory of the 2016
Buckingham Palace Declaration. A 1:3 scale model

• Education: strengthen and enhance research,

of our A380 with the special wildlife decal was 2018
installed at London Heathrow Airport. Three more
A380s with the wildlife decal took to the skies. Signed the Buenos Aires
veterinary training and awareness. Declaration on Travel
and Tourism and Illegal
• Employee engagement: increase volunteer Wildlife Trade.
opportunities, including fundraising and treks, to
bridge the gap between donations and impact.

• Rescue and rehabilitation: provide care for injured

animals and rehabilitate them into the wild.

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OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Since it was established in 2003, the DDCR

has climbed great heights in wildlife
conservation and research

W I L D L I F E C O N S E R VAT I O N
Dubai Desert Conservation Reserve (DDCR)

The DDCR is fully funded and sponsored by Emirates. In 2018, the reserve was
accepted as a candidate for the IUCN Green List for Protected and Conserved
Areas, a global standard for the world’s most effectively managed of protected
areas. DDCR promotes local sustainable tourism and hosted 285,000 tourists

285,000
last year, making it one of the most visited of protected areas in the region.

VISITORS TO DDCR
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2018-19

10
WE COMPLETED
ARABIAN ORYX                
686, increase of 111

OVERVIEW

EMIRATES

DNATA

MAJOR RESEARCH
| GROUP ARABIAN GAZELLE
448, increase of 105 PROJECTS ON ANIMALS,
FINANCIAL VEGETATION AND THE
INFORMATION
DESERT ECOSYSTEM
ADDITIONAL
INFORMATION

SAND GAZELLE HOUBARA

105, increase of 23 250 released,
25 fitted with tracking devices

Our programme to re-introduce antelopes has been so
successful that we are now looking at relocating oryx
and gazelle to other protected areas within the region.
We continued our collaboration with the National Avian
Research Centre to release the endangered Macqueen’s
Bustard, locally called Houbara.
The DDCR is a regional leader in ecological research,
actively collaborating with local and international
universities. We completed 10 major research projects
on animals, vegetation and the desert ecosystem,
hosted students and offered summer internships.
Volunteers at the annual citizen science programme
with Biosphere Expedition helped collect valuable
scientific data.
Emirates One&Only Wolgan Valley, Australia
We have been helping protect Australia’s extraordinary
flora and fauna for over 10 years through the
conservation-based resort in New South Wales. Last
year, our focus was on water conservation, reducing
plastic usage, restoration of the Wolgan River, feral
animal control, weed management and fundraising to
support wombats.
Rainwater and the pristine Carne Creek’s water are
carbon and UV filtered at the resort’s onsite plant for
use across the resort in reusable glass bottles. We
installed three outdoor water stations to encourage the
use of refillable bottles among guests and colleagues.
We recorded sightings of around 25 species, listed
as vulnerable or interesting and uncommon, and
continued to support various Western Sydney University
research projects.

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OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

As one of the largest entities in aviation,

the Emirates Group recognises its role in preserving
this beautiful planet for future generations

PRESERVING OUR PLANET

40m
As a leader in the aviation and travel industries, the Emirates Group recognises
that environmental responsibility is core to our long-term business success.
We are committed to minimising the environmental impact of our operations
across all our businesses and activities, including our supply chain. Our
environmental policy articulates this positioning for all employees and
stakeholders across the Group.

US$
INVESTMENT IN BUILDING THE WORLD'S
LARGEST VERTICAL FARMING FACILITY
Though we have a significant and positive impact on economies globally, our
fuel consumption has an environmental impact. We minimise that impact by
investing in a multi-billion dollar fleet that is one of the youngest in the skies
and sports state-of-the-art technology, reducing fuel use, noise and emissions.
Working with air traffic management providers, aviation authorities and airports,
we establish fuel-saving routes and flight procedures.

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2018-19

82,200
SINCE SEPTEMBER 2018

OVERVIEW

EMIRATES

DNATA

TONNES OF REDUCED
| GROUP
CARBON EMISSIONS
FINANCIAL FROM NEW OPERATIONS
INFORMATION
EFFICIENCY INITIATIVES
ADDITIONAL
INFORMATION

Last year, we created a permanent Operations Efficiency
Steering Group that set stakeholder targets and
implemented several initiatives, including the monitoring,
reporting and verification of fuel-saving initiatives. We
leveraged data and analytics to optimise fuel quantities
on every flight.
From 1 September to 31 March, we reduced our fuel
consumption by 26,000 tonnes, which in turn reduced
carbon emissions by 82,200 tonnes and saved costs
worth around AED 68 million.
We support the introduction of the Carbon Offsetting
and Reduction Scheme for International Aviation
(CORSIA) through the International Civil Aviation
Organization (ICAO) and have been monitoring our
carbon emissions since January. From 2020, we will
begin reporting these to the UAE authorities.
We encourage, and are eagerly awaiting, the
development of a viable supply chain for sustainable
aviation fuel. Our flight crew reduce noise by flying
noise abatement routes, where practical. We switch
off aircraft auxiliary power units where ground power
and pre-conditioned air are available. Our teams
have installed equipment to increase energy and
water efficiency in our facilities. Emirates Engineering
uses dry washing techniques to clean aircraft and
have installed solar arrays to generate electricity in
our facilities.
Emirates Flight Catering and US-based Crop One
Holdings, an industry leader, are co-investing
US$ 40 million to build the world’s largest vertical
farming facility near DWC. When complete, it will
cover 130,000 sq.ft, but with production matching
900 acres of farmland.
The facility will have the capacity to harvest
2,700 kg of high-quality, herbicide- and pesticide-
free leafy greens daily, using 99% less water than
outdoor fields. The first products are expected to
be delivered to Emirates Flight Catering’s customers
from December 2019.

61
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2018-19

OVERVIEW

EMIRATES
EMIRATES ENGINEERING
EMIRATES ENGINEERING
uses dry
useswashing techniques
dry washing to clean
techniques to clean
aircraftaircraft
and haveandinstalled solar arrays
have installed to
solar arrays to
DNATA
generate electricity
generate electricity in our facilities

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

AT DNATA'S BRISBANE, CANBERRA

AND ADELAIDE
catering sites, bio-digesters diverted more than
72 tonnes of food waste from landfill since they were
installed in July 2018

MORE ECOTHREAD TM BLANKETS

made from recycled plastic bottles are being used by
Emirates inflight

IN AUSTRALIA
• dnata donates around 1.5 tonnes
of food every month, providing
6,000 meals for the vulnerable
• Menus on iPads save paper and
AU$ 250,000 every year

62
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2018-19
OVERVIEW
EMIRATES
DNATA
| GROUP
FINANCIAL
INFORMATION
ADDITIONAL
INFORMATION
To promote the use of indigenous vegetation in
landscaping, we plant ghafs, the UAE’s national tree
that is perfectly adapted to desert conditions, in
the sites and facilities managed by us. We refurbish
and repurpose equipment to reduce waste and we
recycle from our offices and operational facilities. We
are designing solutions to reduce single-use plastic
items and other waste onboard, and are using more
sustainable products such as our ecoThread™ blankets,
which are made from recycled plastic bottles.
In dnata, we developed a set of environmental
standards, covering key aspects of our operations
including waste management, energy efficiency, water
and wastewater management. These standards form
part of the dnata Integrated Management System.
dnata Cargo launched a project to reuse polythene
sheeting in operations as part of the Lean Six
Sigma Green Belt programme, which resulted in a
significant reduction in resource consumption, cost
and landfill waste.
Around one-third of all food grown in the world goes to
waste and landfills. dnata Catering’s core commitment
is to reduce that and carbon emissions, and develop
sustainable products and packaging. Bio-digesters at
our Brisbane, Canberra and Adelaide catering sites
have diverted more than 72 tonnes of food waste from
landfill since we installed them in July 2018. This has
prevented more than 300 tonnes of carbon emissions
and the disposal of 150 plastic bin liners every day. Our
UK-based En Route creates fibre-based food packaging
using waste materials from sugar processing.
In Australia, we are reviewing food and beverages
coming off meal trays on inbound flights to identify
items that can be recovered – like unopened bottles
and pots of jam. Where liquid wastes have been
segregated on board, we dispose them through our
on-site treatment systems. Optimised production
processes are reducing waste per meal served.
In a number of operations, we support charities and
reduce our food waste through donations. For example,
in Australia, we donate around 1.5 tonnes of food every
month, which provides 6,000 meals for vulnerable
people. We have also designed an iPad app for our
kitchens to review airline menus. This has dramatically
reduced paper wastage and saves us around
AU$ 250,000 per year.
We recycle packaging materials and waste cooking
oil across our operations. Where energy recovery
from waste is an available option, like in our Dublin
operations, we opt for this over landfill disposal
of residual waste. We are enhancing our systems
for measuring, monitoring and tracking our waste
generation, and aim to set targets in the coming year.
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OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

The Emirates Airline Foundation

takes impoverished children
under its wings

SUPPORTING COMMUNITIES AROUND OUR NETWORK

31
The Emirates Airline Foundation, set up in 2003, aims to improve the quality of
life for children, regardless of geographical, political, or religious boundaries.
The foundation focuses on children trapped in extreme poverty. It provides food,
medicine, housing and education, and strives to reduce illness and childhood
mortality rates.

With four new ones – in Pakistan, Kenya, Tanzania and Nigeria – we now support
31 projects around the world. We channel funds and Skywards Miles donated by
our customers to support these projects and to fly doctors, engineers and other
professionals on humanitarian missions worldwide.

PROJECTS WE SUPPORT
AROUND THE WORLD
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2018-19

OVERVIEW

EMIRATES 31

DNATA

| GROUP

FINANCIAL 14 9
INFORMATION
10
3
ADDITIONAL 11
INFORMATION 12 1
13

5 8

4 2
28 19 7
The Emirates Airline Foundation 20 6
23
16 AFRICA
15 18
PROJECTS NETWORK 27
17
MOROCCO
14 Shams Al Maarif Society

26 KENYA
29 15 Little Prince Nursery and School
30 16 Havilla Children’s Centre
17 Alfajiri Street Kids
18 Starehe Boys Centre
21
ASIA ETHIOPIA SOUTH AMERICA
22
19 Kidane Mehret Children’s Home
BANGLADESH 20 Kidane Mehret School BRAZIL
1 The Emirates-Friendship Hospital Ship 29 Santa Rita de Cássia Orphanage
ZIMBABWE 30 Externato São Francisco de
INDIA 24 21 St Marcellin’s Children’s Village Assis Day Care Centre
2 The Emirates-CHES Home 22 Water for Prosperity
3 IIMPACT Girls Education Project
4 Emirates AIM for SEVA Student Home 25 UGANDA EUROPE
for Girls 23 Outreach to Africa
5 Lifeline Express Hospital Train MIDDLE EAST FRANCE
SOUTH AFRICA 31 HumaniTerra International
SRI LANKA JORDAN 24 Singakwenza
6 The Lady Ridgeway Hospital for Children 10 Kharja Charitable Society 25 Fikelela Children’s Centre
7 Prithipura Communities
DUBAI, UAE TANZANIA
PHILIPPINES 11 Al Noor Training Centre for Children 26 CDTF Albino Project
8 Virlanie Foundation with Special Needs 27 Aljeco Home Organisation
12 Safe Centre for Autism and
PAKISTAN Asperger’s Syndrome NIGERIA
9 Roshni Homes Trust 13 Rashid Centre for The Determined Ones 28 Festival Road Primary School

65
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

127m
LAST YEAR, WE DONATED

OVERVIEW

EMIRATES

DNATA

| GROUP
SKYWARDS MILES TO FLY 35
NGOS TO 23 COUNTRIES ON
FINANCIAL
INFORMATION
OUR PROJECTS WORLDWIDE

ADDITIONAL
INFORMATION

The Emirates Friendship Hospital Ship provides vital medical

assistance to more than two million people living in communities
isolated by the annual monsoon flooding in the most deprived
region of Bangladesh. The Foundation funds a full-time team of
doctors, nurses and support staff, plus annual operating expenses,
and has served over 600,000 patients to-date.

Outreach to Africa (OTA) is a Uganda-based NGO and a partner

of the foundation since 2010. We agreed to fund the Emirates
Airline Foundation Campus at OTA’s Paul Devlin Academy. The
school, with a capacity to house and educate 900 students,
includes dormitories, a dining hall, a library, staff housing, an
infirmary, and sports fields.

The Emirates-CHES Home takes care of HIV positive children

abandoned on the streets of Chennai. Complete with dormitories,
a medical centre, play area and swimming pool, its home to more
than 100 destitute children infected with the virus.

Lifeline Express in India is a hospital train that reaches patients in

the remotest parts of the country, where there is no medical facility
available. We have sponsored nine projects so far, which have
benefited over 50,000 people, and committed to more this year.

Dubai Safe Centre for Autism and Asperger’s Syndrome in the

UAE has constructed a new building funded by the foundation.
The state-of-the-art 20,000 sq.ft. facility has more than tripled the
centre’s capacity from just over 40 to 140 children.

66
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 A SNAPSHOT OF OUR EMPLOYEE CONTRIBUTIONS

RAMADAN
1,000 meals

OVERVIEW
DONATION DRIVES
EMIRATES 250 blankets; SPECIAL NEEDS
5,000 clothing items AED 50,000

DNATA

| GROUP AUSTRALIA,
SALVATION ARMY
FINANCIAL AED 10,000
WILDLIFE
INFORMATION CONSERVATION
AED 50,000 raised by
ADDITIONAL dnata dynamos
INFORMATION

BREAST CANCER
CHARITIES
AED 125,000 globally

Last year, dnata raised over AED 500,000 to support

the three pillars of dnata4good: education, wildlife
conservation and humanitarian initiatives.

In partnership with Dubai Cares, we have contributed

to eight schools, helping to educate more than 1,500
children and 400 adults to date.

We continued to work with local breast cancer charities

and marked our Global Observation Day in October.

In 2019, we will build a school in Cambodia and we are

gearing up to rollout a global initiative ‘dnata runs the
world’ to support our three pillars.

67
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2018-19

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

The Emirates Group’s dedicated employees saved lives and costs,

created innovative solutions and delivered exceptional customer service

OUR PEOPLE, OUR PRIDE

We were known for our diversity, long before it became

THE EMIRATES GROUP'S

170+
fashionable, with our people coming from more than 170

EMPLOYEES COME FROM nationalities. Women form over 40% of our total workforce,
and are employed across 1,100 wide-ranging job roles
covering all major operational, commercial and business
support functions.

NATIONALITIES
68
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

1,100 13,800+
WOMEN WORK IN

OVERVIEW

EMIRATES

DNATA
WIDE-RANGING NAJMS AWARDED IN 2018-19
| GROUP
JOB ROLES
FINANCIAL
INFORMATION PLATINUM 15
ADDITIONAL
INFORMATION GOLD 214

SILVER 655

From pilots and cabin crew, women work in a range of BRONZE 1,350
technical positions, including as aircraft licensed engineers,
cargo loadmasters, ramp operations team leaders, turnaround MERIT 1,720
coordinators and flight dispatchers.

APPRECIATION 9,226
Our people are worth it
Through Najm, the Group’s employee reward and recognition
programme, we applauded our people through the LONG SERVICE 625
year as they saved lives and millions of dirhams, offered
exceptional customer care and service that went above and
beyond, created innovative solutions and forged important
partnerships. From simple thank-you cards to Gold and
Platinum awards, the programme gave our managers and
leaders the breadth of options to recognise all achievements,
big and small.

Last year, we continued to focus on reinventing our approach

to learning and talent. With the phenomenal pace of change
in our environment and industry, our Learning & Talent
team looked both internally and externally to derive our
future direction and ways of working. Over the year, we have
focused on offering dynamic learning assets, optimising
our talent, building the right infrastructure, and aligning
our investment and resources to high-impact activities that
address business needs and prepare us for the future of work.
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OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

Our team continued to deliver world-class training to
our people throughout the year – from regulatory and
technical to leadership, management, general and soft
skills. Engaging with our key stakeholders, we focused
on building a people-centric approach to learning
and talent solutions that were relevant, and delivered
sustainable business outcomes.
From an investment perspective, we launched LinkedIn
Learning across the enterprise to complement our
existing curriculum. This empowers our people to
learn anytime, anywhere from industry experts, while
minimising cost and time away from work. To better
measure and understand how we work together, we
continued to focus on our team effectiveness diagnostic
through employee insights. We introduced digital
and mobile tools that helped us to elevate teaming
capability and maximise performance.
Several teams undertook bespoke leadership, people
development and mentoring programmes based on
70 strategic business needs. We designed and delivered
a virtual programme to accredit coaches across our
outstations. We continue to develop our leaders of
today and tomorrow through the Global Business
Consortium, in partnership with the London Business
School, and the Executive Leadership Development
Programme jointly with Warwick Business School.
Piloting our pilots to be the best
Our flight training team prides itself on offering
world-class programmes and state-of-the-art facilities
to ensure top-notch training for our pilot community.
We continued to improve our Evidence Based Training
courses to ensure our pilots are at a standard to safely,
effectively and efficiently operate one of the most
challenging operational route networks of any airline,
anywhere in the world.
Of the 382 new flight crew joiners, 96.5% successfully
completed their conversion courses, while 254 existing
crew received their command upgrades: 101 on the
A380 and 153 on the 777.
For our new 777X aircraft, we will introduce trailblazing
eye-tracking technology in simulators to help trainers
train and assess our pilots’ monitoring skills. We worked
extensively with Boeing to develop content, courseware
and delivery methods for the new aircraft. We also
conducted pioneering work with Boeing on mid-fidelity
simulation that bridges the gap between traditional
classroom delivery and our full flight simulators,
which offer the ultimate in virtual and augmented
reality training.
Maintaining cabin crew calibre
Our cosmopolitan crew bring with them a rich
background of knowledge, experience and cultural
understanding that we leverage in our training. They
guide and mentor each other in learning languages
and understanding cultural norms and traditions, which
positively impact our customers’ travel experience.
Our crew training team, from over 50 nationalities,
help us to deliver culturally nuanced courses with
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

LEADERSHIP
OVERVIEW COURSES
128 programmes delivered to 1,716 managers
EMIRATES 3 bespoke mentoring programmes
24 command coaching programmes for pilots

DNATA

| GROUP

FINANCIAL
INFORMATION

DIGITAL COURSES
ADDITIONAL 383 courses accessed with
INFORMATION
660,383 online course completions
143,046 e-assessments

authenticity and empathy. We include special needs DUBAI 81 new courses published
20,673 employees
training in our ab initio programme.
attended
2,242
We introduced an annual leadership refresher for our instructor-led sessions
1,400 pursers. Our crew continued to be enthusiastic
about their own development, and we delivered over
200 open days for Safety & Emergency Procedures and
265 workshops on Inspiring Leaders, both voluntary.

Training for change

dnata’s training team trained more than 4,000
employees on average every month. We introduced CABIN CREW
a digital learning unit to enhance our delivery
TRAINING
• 3,705 courses delivered
and learning solutions. A new dnata employment • 40,492 attendees
proposition at DWC meant we had to redesign all • 13,592 training days
existing training courses and models to suit the new OUTSTATIONS
1,599 employees attended
ways of working. We conducted transition training for
295 instructor-led sessions
dnata and Emirates teams to support the phase one
move of flydubai’s aircraft to Emirates Terminal 3.
BUILDING
We trained dnata load supervisors on Emirates’ EFFECTIVE
TEAMS
Firstload digital devices, and supported our global
Insights delivered to
operations in Singapore, Pakistan, Iraq, North America 149 teams, representing
and Canada. We helped 800 employees, who moved to 3,364 employees,
DWC for the southern runway rehabilitation, at DXB get 450 action plans emerged
relicensed for airside driving permits, offered transition
training to 1,500, and produced two mobile-enabled
familiarisation programmes. 71
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW
GROUP KEY EVENTS
EMIRATES

DNATA
APRIL M AY
| GROUP

FINANCIAL
INFORMATION

11 12 19 25 26 02 02 13
ADDITIONAL Emirates SkyCargo Emirates refreshes dnata is certified Emirates introduces dnata is re-awarded Emirates launches its dnata is certified by IATA’s Emirates renews its
INFORMATION launches Emirates AOG its offering of liquors - for Good Distribution Home Check-in, helping the licence to provide Vintage Collection: fine Center of Excellence for partnership with
to help airlines world- premium whiskeys, Practice by the customers check-in with full ground and cargo wines that have been Independent Validators Formula 1® till
wide receive aircraft cognacs, gins, and UK Medicines and their baggage from handling services at stored for up to 15 years in Pharmaceutical end-2022, expanding
parts quickly vodkas – and flavoured Healthcare Products anywhere in Dubainaq Zurich Airport for in its Burgundy cellar Logistics for its its presence at 15+ races
liqueurs, across all Regulatory Agency for another seven years pharma-handling across five continents
classes and routes its cutting-edge pharma through to 2025 processes and facilities
handling technology in Dubai

11
FIRST QUARTER

APRIL
dnata signs an agreement
to acquire Qantas’ catering
businesses, which include
Q Catering Limited and
Snap Fresh Pty Limited
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OVERVIEW

EMIRATES

DNATA
JUNE
| GROUP

FINANCIAL
INFORMATION

30 29 30 07 09 13 15 24
ADDITIONAL dnata expands its Emirates Engineering Emirates Skywards dnata acquires a Emirates starts Emirates SkyCargo Emirates launches The Emirates Airline
INFORMATION partnership with completes replacement introduces My Family, majority stake in DUBZ daily services to signs MoU with new daily service from Foundation and
EGYPTAIR in Dubai to of an Emirates A380’s helping families pool and launches home London Stansted, its Cainiao, the logistics Dubai to Auckland via Outreach to Africa
include premium cargo entire landing gear in their Miles and redeem and hotel check-in for third airport and arm of the Alibaba Bali, making it the only establish a school
handling services one go in-house rewards faster airline passengers 10th daily service Group, as they expand year-round non-stop in Western Uganda
in Dubai to the city their presence globally flight between Bali catering for 850
and in Dubai and Auckland students

26
JUNE
Emirates Flight Catering announces plans
to build the world’s largest vertical farming
facility in Dubai

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OVERVIEW

EMIRATES

J U LY AUGUST
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 01 04 09 12 16 19 19 01 01
INFORMATION
dnata celebrates the Emirates introduces Emirates Skywards Emirates opens its Emirates receives dnata divests its 22% marhaba celebrates Emirates Skywards Emirates celebrates 10
25th anniversary of 3D seat models on partners with the first dedicated airport IATA Resolution 753 stake in Hogg Robinson its one millionth becomes the loyalty years of its A380 service
Gerry’s dnata, its first emirates.com, becoming ENTERTAINER to launch lounge in Cairo, the compliance certification Group (HRG), which customer in Dubai programme for flydubai that has flown more than
overseas operation and the first airline to the Emirates Skywards 42nd across its route for its baggage was acquired by Global in 2018 105 million passengers
now Pakistan’s largest introduce web virtual GO app network operation in Dubai Business Travel (GBT)
cargo and ground reality technology on
handling company its digital platform

06
SECOND QUARTER

J U LY
Emirates launches services
to Santiago, via Sao Paulo, the
airline’s first arrival in Chile  

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OVERVIEW

EMIRATES

SEPTEMBER
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 01 09 09 15 03 05 12 17 19
INFORMATION
Emirates and Emirates refreshes its dnata announces dnata launches Emirates SkyCargo begins Emirates Holidays Emirates SkyCargo marhaba celebrates Emirates launches its
Trenitalia, Italy’s premium offering with the acquisition of passenger handling flying 500 horses on 19 partners with the Asian announces the transport its Melbourne lounge’s own Food and Wine
national railway luxury products in First German-based tour operations at charter freighters for the Football Confederation of the one millionth first anniversary  channels on ice for an
company, announce and Business Class operator Tropo New York JFK airport FEI World Equestrian (AFC) to become the unit loading device inside look at its menu
a new codeshare from BYREDO skincare, Games™ Tryon 2018 – the official tour operator through its bonded o. design and wine
agreement Bowers & Wilkins largest air horse charter of the AFC Asian Cup corridor trucking service investment story
and Bulgari for a single sporting event UAE 2019  connecting DXB-DWC

16 AUGUST
Emirates SkyCargo launches
Emirates Pets for the convenient
and comfortable transport
of domestic pets
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OVERVIEW

EMIRATES

OCTOBER NOVEMBER
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 01 09 25 28 05 05 11 14
INFORMATION
Emirates launches dnata wins the Good Emirates invites global Emirates launches Arabian Adventures GTA dnata, a joint venture Emirates Flight Catering Cargo iQ publishes
services to Edinburgh Distribution Practice travellers to Fly Better scheduled A380 services signs a partnership in Canada, expands inaugurates a dedicated data that confirms
(GDP) certification with the launch of its to Osaka agreement with HTMS operations at Toronto premium class kitchen Emirates SkyCargo is
for pharma handling new brand campaign International to sell its Pearson International with an investment of one of the largest air
services at its state-of- premium services in the Airport with the start of AED 1 billion cargo airlines on total
the-art Zurich facility Italian market a long-term partnership shipments tracked
with Air Transat

29
THIRD QUARTER

O C TO B E R
Emirates launches trials for the
world’s first ‘biometric path’,
offering customers a smooth and
seamless journey through DXB

76
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DECEMBER
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 19 27 28 30 02 09 13 18 20
INFORMATION
dnata launches Emirates invests in a dnata signs a five-year dnata completes the Emirates joins Etihad, Emirates Flight Catering Emirates takes Emirates and Emirates inaugurates
ground-handling new fleet of high-tech agreement with Etihad acquisition of 121 Air Arabia, flydubai, is selected to lead delivery of its last South African Airways its refurbished lounge
services at Los Angeles buses to enhance the Airways to run its contact Inflight Catering in and seven Al Fursan jets the hospitality and Boeing 777-300ER expand their codeshare at Rome’s Leonardo da
International Airport on-ground experience centres globally the US for a world-first flying operations for the aircraft on order agreement Vinci-Fiumicino airport
for its Economy Class formation to celebrate New Zealand pavilion
passengers in Dubai the UAE’s Year of Zayed at Expo 2020 Dubai

28 NOVEMBER
dnata announces the acquisition of
a majority stake in BD4travel, an
award-winning tech company that
provides AI driven IT solutions to
online travel agencies
77
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ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

JANUARY FEBRUARY
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 09 16 16 21 22 22 01 04
INFORMATION
dnata renews its IATA Emirates SkyCargo GTA dnata is awarded Emirates introduces Emirates Skywards dnata becomes owner Emirates and China dnata launches a new
Safety Audit for Ground starts freighter services IATA’s Center of ice playlist opens a one-stop centre of Dubai Express, Southern Airlines resource management
Operations (ISAGO) to Bogota, Colombia Excellence for  syncing enabling at DXB to better Freightworks LLC and a sign a MoU on a system in Dubai to help
registration in the Independent Validators customers to sync serve members majority stakeholder in comprehensive optimise operations and
Philippines and receives in pharma logistics their personalised Bolloré Logistics LLC, UAE reciprocal codeshare efficiently manage its
station accreditations in in Toronto playlists on board agreement workforce
Manila, Cebu and Clark 

17
FOURTH QUARTER

JANUARY
dnata opens an ultra-modern
catering facility in Canberra, Australia

78
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ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

MARCH
DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL 01 13 14 19 21 28
INFORMATION
Emirates opens the Emirates Flight dnata gains IATA’s Emirates reveals its Emirates brings the dnata launches
11th edition of the Training Academy Center of Excellence ICC Cricket World Cup whole Arsenal squad operations in Belgium
Emirates Airline Festival and National Aviation for Independent 2019 themed A380 to visit its Dubai hub, by opening a new
of Literature with 182 Academy, Saudi Arabia Validators in pharma livery ahead of the much the first time in the 14,000 m² cargo centre
authors from over sign a MoU to share logistics in Dallas anticipated tournament airline’s history at Brussels airport with
30 countries expertise and jointly a planned investment
promote training of EUR 8 million
programmes

14
FEBRUARY
Emirates signs a deal for
40 Airbus A330neos and
30 A350-900s

79
THE EMIRATES GROUP

Emirates’ growing network

ANNUAL REPORT

2018-19
Emirates operates flights to 158 destinations in 85
countries, offering industry-leading passenger and
cargo air transport services.
OVERVIEW
We connect the world to, and through, our hub
EMIRATES in Dubai.

DNATA

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

Emirates presence
EUROPE JOHANNESBURG DUBAI UMM AL QUWAIN KRABI AUSTRALASIA MELBOURNE
NICOSIA SEYCHELLES FUJAIRAH PHUKET ADELAIDE NEWCASTLE
MUSCAT ASIA SAMUI AUCKLAND PERTH
AFRICA MIDDLE EAST RAS AL KHAIMAH BANGKOK SINGAPORE BRISBANE SYDNEY
ARUSHA ABU DHABI SALALAH COLOMBO CANBERRA WOLGAN VALLEY
CAPE TOWN AJMAN SOHAR GALLE HOBART
80 DAR ES SALAAM AL AIN SHARJAH HUA HIN LAUNCESTON
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

81
THE EMIRATES GROUP

dnata’s growing network

ANNUAL REPORT

2018-19
dnata’s business footprint in airport operations,
catering and travel services, span 196 cities and
airports across the globe.
OVERVIEW
We aim to be the world’s most admired air
EMIRATES services provider.

DNATA

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

82
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ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

| GROUP

FINANCIAL
INFORMATION

ADDITIONAL
INFORMATION

83
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

GROUP

| FINANCIAL
| INFORMATION

ADDITIONAL 85 E M I R AT E S F I N A N C I A L CO M M E N TA RY
INFORMATION

95 D N ATA F I N A N C I A L CO M M E N TA RY

1 0 1 E M I R AT E S I N D E P E N D E N T AU D I TO R ’ S R E P O RT

1 0 6 E M I R AT E S CO N S O L I DAT E D F I N A N C I A L S TAT E M E N T S

1 4 9 D N ATA I N D E P E N D E N T AU D I TO R ’ S R E P O RT

1 5 2 D N ATA CO N S O L I DAT E D F I N A N C I A L S TAT E M E N T S

1 9 0 A D D I T I O N A L I N F O R M AT I O N

200 GLOSSARY

84
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

| EMIRATES
| FINANCIAL
| COMMENTARY

DNATA
FINANCIAL
COMMENTARY

EMIRATES

F I N A N C I A L C O M M E N TA R Y
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
FINANCIAL

E M I R AT E S
STATEMENTS

ADDITIONAL
INFORMATION

85
 Profit attributable to the Owner in AED bn Profit margin in % Revenue trend in AED bn 96.0 Passenger seat factor in %
86.7 91.2
THE EMIRATES GROUP 7.1 83.5 83.8
ANNUAL REPORT

2018-19 8.4
4.6 79.6
77.5
2.8 5.1 3.0

1.3 0.9 76.5 76.8

OVERVIEW 0.9 75.1
1.5

EMIRATES 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19

DNATA

Operating profit in AED bn Return on shareholder’s funds in % Revenue in AED m 2018-19 2017-18 % change
GROUP 8.3 Passenger 78,562 74,262 5.8
23.8 Cargo 13,056 12,439 5.0
FINANCIAL 5.9 Excess baggage 444 433 2.5
INFORMATION
4.1 Transport revenue 92,062 87,134 5.7
17.2
| EMIRATES
| FINANCIAL 2.4 2.6 7.9 Sale of goods 2,918 2,982 (2.2)
| COMMENTARY 2.4 Hotel operations 669 746 (10.3)
3.8
DNATA Others 391 363 8.0
FINANCIAL 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
COMMENTARY Non-transport revenue 3,978 4,091 (2.8)
EMIRATES Total 96,040 91,225 5.3
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA Despite the unrelenting headwinds of
CONSOLIDATED
FINANCIAL rising oil prices, unfavourable currency
STATEMENTS movements in certain markets and
cutthroat competition; financial year
ADDITIONAL
INFORMATION 2018-19 marked our 31st consecutive
profitable year.
We continued with our strategic
imperative to operate a young, modern
and efficient fleet adding 7 Airbus 380s
and 6 Boeing 777-300ERs to our fleet
this year whilst phasing out 11 older
aircraft. We also substantially completed
revamping our 10 Boeing 777-200LR
aircraft with the new Business class
cabins, an initiative unveiled in March
2018. Although profits remained under
severe pressure during the financial
year, these investments, amongst others,
underscore our commitment to continue
inspiring travellers to fly better around
the world using our world-class product
and service offering.
Our fleet of Airbus 380 and Boeing
777 aircraft connects 158 destinations
86 across six continents through our hub
in Dubai, facilitating global travel and High fuel prices had a significant impact revenue was propped up by better yields
trade. During the year we transported on our operating profit of AED 2.6bn which demonstrate our customers’
58.6 million passengers and carried 2.7 (2017-18: AED 4.1bn) resulting in a confidence in the premium product
million tonnes of cargo. reduction in our operating margin to and the services we offer. Volumes in
2.7% (2017-18: 4.4%). terms of RPKMs and tonnage carried
In February 2019, we announced an
showed improvements of 2.7% and
order for 40 A330 Neos and 30 A350s. The reduction in profits meant the return
1.4% respectively. This was due to an
These aircraft will complement Emirates’ on shareholder’s funds declined to 2.4%
increase in capacity, introduction of new
fleet mix, support our network growth (2017-18: 7.9%).
destinations and higher frequencies on
and give us more flexibility to better
Revenue existing ones.
serve our seasonal demand.
Our revenues crossed the AED 96bn Hotel operations, including food
With the launch of our new brand
mark, showing an improvement of and beverage sales, did not perform
promise “Fly Better”, we reaffirmed our
5.3% over last year. Transport revenue as expected due to difficult market
edge in providing air travel experiences
which comprises more than 95% of conditions and pushed non-transport
that are comfortable and enjoyable
Emirates’ revenue increased by 5.7% to revenue down by 2.8%.
in every cabin class. This year we also
AED 92.1bn (2017-18: AED 87.1bn). The
inaugurated our 42nd dedicated lounge
growth in both passenger and cargo
in Cairo, Egypt.
Profitability
With external factors impeding our 2018-19 2017-18 % change
performance, profit for the year Passengers carried million 58.6 58.5 0.2
struggled to touch previous levels and Available seat km ASKM million 390,775 377,060 3.6
stood at AED 0.9bn (2017-18: AED
Passenger seat km RPKM million 299,967 292,221 2.7
2.8bn). Our profit margin also reduced to
0.9% (2017-18: 3.0%). Passenger seat factor % 76.8 77.5 (0.7) pt
 Available seat kilometres (ASKM) in millions Passenger yield in fils per RPKM Geographical revenue in %
THE EMIRATES GROUP
29.7
ANNUAL REPORT 18-19 390,775 26.7 26.2
25.4
2018-19 17-18 377,060
24.8 29.4%
27.7%
Europe
East Asia and Australasia
15.1% Americas
16-17 368,102
10.6% Africa
15-16 333,726 8.6% Gulf and Middle East
OVERVIEW
8.6% West Asia and Indian Ocean
14-15 295,740 14-15 15-16 16-17 17-18 18-19
EMIRATES

DNATA

Passenger numbers in millions Cargo carried in tonnes ‘000

2,623 2,659
GROUP
56.1 58.5 58.6 2,509 2,577
2,377
51.9
48.1
FINANCIAL Geographical revenue in AED bn
INFORMATION East Asia Gulf and West Asia
and Middle and Indian
| EMIRATES Year Europe Australasia Americas Africa East Ocean Total
| FINANCIAL
| COMMENTARY 2018-19 28.3 26.6 14.5 10.2 8.3 8.1 96.0
2017-18 26.7 25.4 13.4 9.4 8.5 7.8 91.2
DNATA
FINANCIAL 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 % change 6% 5% 8% 9% (2%) 4% 5%
COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA Passenger revenue and seat factor
CONSOLIDATED
FINANCIAL We increased our passenger capacity
STATEMENTS
by 3.6%, with ASKMs reaching 390.8bn
(2017-18: 377.1bn). The seat factor,
ADDITIONAL
INFORMATION although reducing slightly, stayed
strong at 76.8% (2017-18: 77.5%) as we
provided air travel services to a record
58.6 million passengers. Passenger
traffic measured in RPKM increased
by 2.7% and the yield at AED 26.2
fils per RPKM (2017-18: AED 25.4 fils
per RPKM) improved by 3.1%. These
factors contributed to a 5.8% growth
in passenger revenue (including excess
baggage) to AED 79.0bn (2017-18: AED
74.7bn).
Our on-board hospitality moved even
higher as we refreshed our luxury
products helping the premium class seat
factor increase by 0.7%pt.
Along with organic growth, we
continued to forge partnerships to
expand our offering and benefit
customers. This year, Emirates entered
into new codeshare arrangement with
Jetstar Pacific and signed an MoU
with China Southern Airlines. We also
enhanced our agreement with South
African Airways. These new partnerships
provide increased destination choices to
our customers.
Our strategic partnership with flydubai
continued to grow stronger as this year
Emirates “Skywards” programme became
the loyalty programme for flydubai.
We introduced Home Check-in, our
initiative to help our passengers to
check-in with their luggage from
anywhere in Dubai. Our Skywards
team also introduced various initiatives
including ‘My Family’, a programme
which helps families to pool their miles
and enhance their award options.
Cargo revenue
SkyCargo contributed 14.2% (2017-18:
14.3%) of Emirates’ transport revenue,
continuing its success story.
Belly capacity increased further this
year with new aircraft and passenger
destinations. We also expanded our
freighter network to Bogota in Columbia
and relaunched Erbil in Iraq.
The current financial year also saw new
logistic arrangements with Alibaba
Group to deliver packages across
Emirates’ network as e-commerce
continues to drive growth in global air
cargo. We also launched new cargo
services such as Emirates AOG, for
priority transport of aircraft parts, and
Emirates Pets.
Annual cargo tonnage at 2,659 thousand
tonnes (2017-18: 2,623 thousand tonnes)
and cargo revenues at AED 13.1bn
(2017-18: AED 12.4bn), both crossed
record levels. FTKM increased by 2.3%
to 13.7bn (2017-18: 13.4bn) and the
yield per FTKM increased by 2.7% over
the previous year resulting from a better
cargo tariff mix.
Non-transport revenue
Our non-transport revenue includes
the sale of consumer goods, catering
operations, sale at F&B outlets and hotel
operations. The decrease in revenue this
year was largely due to loss of certain
customers in our catering business and
strong competition in the UAE hotel
market.
Revenue distribution
We continued to uphold the strategy of
maintaining a diversified revenue base as
the contribution from each geographical
region remained below 30% of the
total revenue with Europe being the
largest revenue contributor at 29.4%
(2017-18: 29.3%). All regions recorded
improvement in revenues this year
except the Gulf and Middle East which
continues to be afflicted by ongoing
political instability and softening of
passenger demand.
87
 Total operating costs in AED bn Fuel price and quantity development Employee and jet fuel cost as a % of total
THE EMIRATES GROUP operating costs
ANNUAL REPORT 95.3 160%
88.2
2018-19
Heading heading
82.9 82.6
76.7 140%
35 26 25 28 32
120%

100%
Fuel Price Volume 16 16
80% 15
OVERVIEW 13
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 14
EMIRATES 14-15 15-16 16-17 17-18 18-19 Graph represents % change in average monthly fuel price and quantity in 2018-19 indexed to 2017-18

DNATA

Unit cost in fils per ATKM 2018-19 51 58 59 57 55

as % of
GROUP
% operating
Operating costs in AED m 2018-19 2017-18 change cost
158
FINANCIAL
139 146 Jet fuel 30,768 24,715 24.5 32.3
INFORMATION 132 132
Employee 12,623 13,080 (3.5) 13.3 14-15 15-16 16-17 17-18 18-19
| EMIRATES Aircraft operating leases 11,964 11,691 2.3 12.6
Jet fuel costs
| FINANCIAL Depreciation and amortisation 9,680 9,193 5.3 10.2
| COMMENTARY 102 97 97 98 97 Employee costs
Sales and marketing 6,137 6,404 (4.2) 6.4 Others
DNATA Handling 5,544 5,335 3.9 5.8
FINANCIAL 14-15 15-16 16-17 17-18 18-19
COMMENTARY In-flight catering and other costs 3,519 3,323 5.9 3.7
Unit Cost Unit cost excluding jet fuel
Overflying 2,761 2,891 (4.5) 2.9
EMIRATES
CONSOLIDATED Facilities and IT related costs 2,626 2,485 5.7 2.8
FINANCIAL Aircraft maintenance 2,413 2,364 2.1 2.5
STATEMENTS
Landing and parking 2,231 2,153 3.6 2.3
DNATA
CONSOLIDATED
Expenditure Cost of goods sold 1,588 1,575 0.8 1.7 new and upgraded lounges for our
FINANCIAL Operating costs Crew layover 1,094 1,125 (2.8) 1.1 customers and better accommodation
STATEMENTS
Corporate overheads (including fx loss) 2,312 1,902 21.5 2.4 facilities for employees. We also opened
Operating costs, outpacing the growth
Total operating costs 95,260 88,236 8.0 100.0 a new dedicated premium class in-flight
ADDITIONAL in revenues, rose by 8.0% to AED 95.3bn
INFORMATION kitchen in the UAE through our catering
(2017-18: AED 88.2bn). This increase was We continue to assess our fuel price risk 10 aircraft delivered in the previous year. arm, Emirates Flight Catering.
primarily on account of fuel costs which on an ongoing basis and jet fuel cost These increases were partially offset by
were up by 24.5% owing to escalated remained unhedged during the year. the phase out of 11 (2017-18: 6) aircraft Other operating costs
fuel prices for most of the year. on completion of their lease terms. Sales and marketing costs decreased by
Employee cost 4.2% and stood at AED 6.1bn (2017-18:
Jet fuel cost Direct operating costs
Employee costs at AED 12.6bn (2017- AED 6.4bn) resulting from various cost
Jet fuel cost at 32% (2017-18: 28%) 18: AED 13.1bn) were down by 3.5%, Direct operating costs including saving initiatives undertaken during the
continues to be the single largest due to the drop in staff head count. Our handling, in-flight catering, landing year.
element of operating costs. The market new and innovative ways of working, & parking and aircraft maintenance
oil prices for jet fuel remained volatile introduced in previous years in certain increased by 4.0%, moving in parallel The foreign exchange loss of AED 333m
this year fluctuating between USD 71/ parts of the organisation where we felt with our capacity growth, offset by cost (2017-18: gain of AED 33m) aggravated
barrel to USD 95/barrel. The average the need, have started yielding results. savings in crew layover due to reduction our cost base.
price this financial year was USD 84/per Our productivity is up and we see a in staff strength and overflying, as a Unit cost
barrel, which is an increase of 22% versus gradual slowdown in the increase of result of better route planning.
last year. This, together with a higher fuel With the significant increase in jet fuel
recurring employee cost. prices, the total unit cost per ATKM
uplift of 2.7% - in line with the growth Depreciation and amortisation
in capacity, resulted in our fuel bill rising Aircraft operating leases The increase of 5.3% or AED 487m increased to 146 fils (2017-18: 139 fils)
by 24.5% to AED 30.8bn (2017-18: AED Aircraft operating lease costs increased was primarily driven by 12 new aircraft per ATKM. Total unit cost per ATKM
24.7bn). by 2.3% to AED 12.0bn (2017-18: AED deliveries. The charge also increased excluding jet fuel showed a positive
11.7bn). This is due to the delivery of due to other capitalisations done during movement and reduced to 97 fils (2017-
Fuel costs per ATKM rose to 49 fils (2017- 18: 98 fils) per ATKM.
one new aircraft on operating lease the year, including; expansion of our
18: 41 fils).
88 during the year and full year impact of state-of-the-art flight training academy,
 Destinations Available tonne kilometres (ATKM) in bn Aircraft departures
THE EMIRATES GROUP and number of aircraft
ANNUAL REPORT 18-19 158
259 268 270 18-19 203,281
2018-19 17-18 157
231
251
17-18 201,858
61.4 63.3
60.5
56.4
16-17 156 50.8 16-17 204,543

OVERVIEW
15-16 153 15-16 199,754

14-15 144 14-15 15-16 16-17 17-18 18-19 14-15 181,843

EMIRATES
ATKM No. of aircraft
DNATA

A380 aircraft numbers Overall and breakeven load factor in % B777 aircraft numbers
GROUP
18-19 109 18-19 161
67.3 67.2 66.8
FINANCIAL 65.5 65.0
17-18 102 17-18 166
INFORMATION 64.7
66.4
65.2
| EMIRATES 16-17 94 64.5 16-17 163
| FINANCIAL
| COMMENTARY
15-16 75 15-16 156
60.4
DNATA
FINANCIAL 14-15 59 14-15 15-16 16-17 17-18 18-19 14-15 144
COMMENTARY
Breakeven load factor Overall load factor
EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
Capacity, traffic and
FINANCIAL load factor
STATEMENTS
Capacity rose by 3.1% to 63.3bn ATKMs
ADDITIONAL (2017-18: 61.4bn) resulting from new
INFORMATION
aircraft introduced to serve our ever-
growing network. The overall traffic load
or RTKM growth was 2.6%.
Our passenger and cargo volumes
reached record levels as a result of
our service initiatives and enhanced
connectivity provided to our customers.
The overall load factor was 66.8%
(2017-18: 67.2%), while the break-even
load factor increased to 66.4% (2017-18:
65.2%) owing to higher unit costs per
ATKM mainly influenced by fuel.
2018-19 saw us achieving significant
milestones as we completed our 10th
year of the flagship A380 service
flying more than 105m passengers. In
December 2018, we also welcomed our
last Boeing 777-300ER into our fleet.
We continue to maintain our position
as the largest operator of A380 aircraft
and with the addition of 7 new aircraft,
we now have 109 super-jumbos in our
fleet. The high seat factor on the A380
fleet continues to demonstrate the
customer preference for this aircraft.
This fleet carried 41% (2017-18: 41%) of
our passengers in 2018-19. With A380s
operating to 50 destinations, 32% (2017-
18: 31%) of all cities across the Emirates
network are served by an A380. This
aircraft will remain the cornerstone of our
fleet mix and product offering well into
the 2030s.
The Boeing 777 aircraft continues
to remain an important pillar of our
operations. We added 6 aircraft to the
fleet and phased out 11, which brings the
total count of aircraft to 161.
Capacity (ATKM)
Load carried (RTKM)
Load factor
Break even load factor
We remain the world’s largest Boeing 777 • A new daily service from our hub in
operator and it accounts for almost 59% Dubai to Auckland via Bali, the only
(2017-18: 59%) of the airline’s capacity, year-round non-stop flight between
carrying 59% (2017-18: 59%) of our Bali and Auckland;
passengers and 76% (2017-18: 75%) of
• New A380 services to Osaka and
our cargo tonnage.
Hamburg;
The increase in aircraft departures,
• Relaunched services to Istanbul’s
passenger numbers and RPKMs was
second airport – Sabiha Gokcen;
driven by:
• Higher frequencies to several
• Introduction of new passenger
existing destinations including
services to three destinations –
Sydney, Orlando, Fort Lauderdale,
Stansted, our third London airport
Lisbon, Newark, Bali, Luanda, Lyon,
and 10th daily service to the city,
Paris, Toronto, Riyadh, Amsterdam,
Edinburgh in Scotland and Santiago
Stockholm and Tunis; and
in Chile, along with the full year
operations of destinations added • Increased capacity to existing
in the prior year in the Far East and destinations with larger aircraft mainly
Europe; Houston, Melbourne, London Gatwick
and Brisbane.
2018-19 2017-18 % change
million 63,340 61,425 3.1
million 42,304 41,250 2.6
% 66.8 67.2 (0.4) pt
% 66.4 65.2 1.2 pts 89
 Fleet and other capital expenditure in AED bn
THE EMIRATES GROUP
ANNUAL REPORT 17.8
2018-19 14.7

10.6 12.3
Assets in AED bn Equity and liabilities in AED bn
127.4 127.6 7.4
127.4 127.6

OVERVIEW
37.7 37.0 2.1 2.0 2.0 1.1 1.1
EMIRATES 14-15 15-16 16-17 17-18 18-19
75.3 71.1 Fleet capital expenditure Others
DNATA

Equity in AED bn and dividend payout

52.2 48.9 in % of profit
GROUP 37.0 37.7
35.1
Aircraft, engines and parts* 32.4
FINANCIAL 28.3
22.3
INFORMATION 21.2 Other non-current assets Equity

| EMIRATES 20.4 Cash assets Non-current liabilities 48%

| FINANCIAL 17.0 37.5 41.7 29% 36%
| COMMENTARY
Other current assets Current liabilities 0% 0%
13.9 13.8
DNATA
FINANCIAL 18-19 17-18 18-19 17-18 14-15 15-16 16-17 17-18 18-19
COMMENTARY
* includes aircraft pre-delivery payments Equity Divident payout
EMIRATES Assets in AED bn 2018-19 2017-18 change % change
CONSOLIDATED
FINANCIAL Aircraft, engines and parts* 75.3 71.1 4.2 5.9
STATEMENTS
Other non-current assets 21.2 22.3 (1.1) (4.9)
DNATA
Statement of financial position Cash assets 17.0 20.4 (3.4) (16.7) ab-initio pilot training programme. We
CONSOLIDATED
FINANCIAL Other current assets 13.9 13.8 0.1 0.7 also made investments in our reservation
STATEMENTS Assets system to enhance customers’
Total 127.4 127.6 (0.2) (0.2)
Emirates balance sheet continued to experience and bring efficiencies across
ADDITIONAL *includes aircraft pre-delivery payments
INFORMATION remain strong, with total assets at AED business processes.
127.4bn (2017-18: AED 127.6bn).
payments for the outright purchase of 2 engines represented 92% of the total Equity
Our commitment to ‘Fly Better’ comes A380s & dividend to our shareholder. capital spend (2017-18: 87%). Total equity rose by 1.9% to AED
through our investments in the product.
Capital expenditure Secondary capital expenditure amounted 37.7bn (2017-18: 37.0bn) due to profit
To keep the fleet young and efficient, we
to AED 1.1bn (2017-18: AED 1.1bn), generated in the year. The equity ratio
continued to invest in new aircraft and Capital expenditure of AED 13.4bn (2017-
of which the majority was invested in remained stable at 29.6% (2017-18: 29.0%).
cabin interiors. We capitalised 12 new 18: 8.5bn) is 58% higher compared to
aircraft on our balance sheet this year. airport lounges – we opened our 42nd In order to support Emirates’ ongoing
the previous year driven by an increase
Our 10 Boeing 777-200LR aircraft were dedicated lounge in Cairo and upgraded growth, the shareholder decided to
in aircraft deliveries. We obtained 6
substantially reconfigured with the new our lounge offerings at New York, retain this year’s profit and hence no
Boeing 777s and 6 A380s (2017-18: 7
Business and refreshed Economy class Rome and Dubai airports, employee dividend was declared.
aircraft) during the year. Primary capital
cabins. All these investments, partially accommodation and kitchen facilities.
expenditure comprising of aircraft spend
We enhanced the infrastructure of our Liabilities
offset by the depreciation charge for (including pre-delivery payments, aircraft
the year, resulted in an increase of non- Emirates Flight Training Academy and Total liabilities fell by 1% to AED 89.7bn
and engine parts), major aircraft &
current assets by AED 3.1bn. introduced 13 new trainer aircraft for our (2017-18: AED 90.6bn). Current liabilities
engine maintenance overhauls and spare
fell by AED 4.2bn, primarily because
Current assets excluding cash reserves
Equity and liabilities in AED bn 2018-19 2017-18 change % change of the reductions in trade payables,
remained stable at AED 13.9bn (2017-18:
Total equity 37.7 37.0 0.7 1.9 repayment of borrowings & lease
AED 13.8bn).
liabilities and payment of dividend liability
Non-current liabilities 52.2 48.9 3.3 6.7
Cash assets declined to AED 17.0bn at outstanding from last year. Non-current
31 March 2019 (2017-18: AED 20.4bn) Current liabilities 37.5 41.7 (4.2) (10.1)
liabilities increased by AED 3.3bn due to
90 primarily due to reduction in profits and Total 127.4 127.6 (0.2) (0.2) additional borrowings and lease liabilities.
 Sources of funding over last 10 years in %
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 48% Operating Lease Fleet information

30% Commercial Financing Aircraft Total as at On balance Off balance Total as at 31 Change since Future Options
15% EXIM/ECA Guaranteed Financing 31 March sheet sheet March 2018 31 March deliveries
2019 2018
6% Bonds
A 380-800 109 50 59 102 7 14 -
1% Islamic Financing
OVERVIEW Boeing 777-300ER 138 66 72 138 - - -
Boeing 777-200LR 10 6 4 10 - - -
EMIRATES
Boeing 777-300 1 - 1 5 (4) - -
DNATA Boeing 777-8X - - - - - 35 -
Number of aircraft Average fleet age in months Boeing 777-9X - - - - - 115 50
GROUP 268 270
251
259 18-19 73 A 330-900 - - - - - 40 -
231 A 350-900 - - - - - 30 -
FINANCIAL
17-18 68
INFORMATION Passenger 258 122 136 255 3 234 50

| EMIRATES 16-17 63 Boeing 777-200LRF 12 - 12 13 (1) - -

| FINANCIAL Freighters 12 - 12 13 (1) - -
| COMMENTARY 15-16 74
Total aircraft 270 122 148 268 2 234 50
DNATA
FINANCIAL 14-15 15-16 16-17 17-18 18-19 14-15 75 Note: One A319 aircraft is used for Executive jet charters
COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
Aircraft fleet and financing
FINANCIAL
STATEMENTS Emirates reinforced its position as the
world’s largest all wide-body aircraft
ADDITIONAL operator by taking delivery of 13 Airbus
INFORMATION
380 and Boeing 777 aircraft during the
financial year.
We are proud of our young fleet and
the combination of new deliveries and
phase-outs of old aircraft enabled us to
retain a youthful fleet age of 73 months
(2017-18: 68 months), substantially lower
than the industry average.
Continuing on our growth vision, we
intend to acquire 40 A330s and 30 A350s
along with 150 Boeing 777Xs and 14
A380s.
With 6 Boeing 777-300ER deliveries in
the year and the simultaneous phase-out
of 11 older Boeing 777 aircraft, Emirates
maintained its position as the world’s
largest Boeing 777 operator with 161
Boeing 777 aircraft as of the close of
this financial year. Augmenting Emirates’
position as the largest A380 operator,
we took delivery of 7 aircraft thereby
bringing the total A380 fleet to 109.
Underpinned by our financial strength
and solid track record of business
performance, Emirates continued to
innovate and develop new financing
arrangements in close collaboration with
the financial community.
During the year, Emirates raised a total
of AED 14.2bn (2017-18: AED 18.7bn)
in aircraft financing (largely through a
combination of term loans, finance and
operating leases). Committed offers
are in hand to finance all 6 A380s to be
delivered in the forthcoming financial
year.
As Export Credit Agency (ECA) support
was reinstated for Airbus deliveries,
we devised an innovative finance lease
structure to combine the traditional
export lease debt with junior debt from
Korean investors to finance 2 A380
deliveries in the year.
Testament to the increasing depth of the
Japanese structured financing market
for Emirates, all 6 Boeing 777-300ER
aircraft delivered were financed via a
Japanese Operating Lease with a Call
Option (JOLCO) raising funding of more
than USD 1bn during the year. Emirates
has now raised over USD 7.6bn from the
Japanese structured financing market
since 2014.
Emirates funded 2 A380s delivered in the
financial year through a USD 600 million
corporate Sukuk issued in March 2018.
Emirates and its financing partners were
awarded Aviation 100 ‘Deal of the Year
for Innovation’ by the Airline Economics
magazine for successfully refinancing
and terming out a commercial bridge
facility (initially put in place due to
non-availability of ECA cover) of AED
3.8 bn (USD 1.0 bn) via a novel hybrid
finance lease structure for 5 A380 aircraft
delivered last year. By maintaining access
to an institutional investor and bank
market base from Korea, Germany, the
United Kingdom and the Middle East,
Emirates continued to use this structure
for a further 2 A380 aircraft delivered in
the current financial year.

91
 Cash generated from operating activities Cash assets in AED bn and Cash assets to Operating cash margin in % EBITDAR and debt service in AED bn
THE EMIRATES GROUP in AED bn total revenue in % 19
14.1 14.1 17
ANNUAL REPORT 13.3 16
16.6
2018-19
14
20.0 20.4 12
10.4 10.5 15.3
16.9 17.0
15.7 24.4 25.0 24.3
14.9 20.3 21.2 21.8 20.9
19.0
24 14.4 15.1
22
19 18 12.3
17
OVERVIEW
10.8

EMIRATES 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-1913-14 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Cash assets Cash assets to revenue EBITDAR Debt service No. of months
DNATA

Cash flow in AED bn EBITDAR margin in %

GROUP 4.1
28.7
10.5
9.8 27.0
FINANCIAL
INFORMATION
25.0 24.8
20.4
17.0
| EMIRATES 22.8
| FINANCIAL
| COMMENTARY
Cash assets Net cash Net cash Net cash Cash assets
net of bank generated from used in used in net of bank
DNATA overdrafts as at operating investing financing overdrafts as at
FINANCIAL 31 March 18 activities activities activities 31 March 19 14-15 15-16 16-17 17-18 18-19
COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
Cash position to lower profitability and a resulting up by 10% year on year. The payments (2017-18: AED 7.3bn). This increase of
FINANCIAL reduction in working capital, including shown in the table below (including those 21.9% or AED 1.6bn was due to higher
STATEMENTS Cash assets payout of profit share to staff for prior of previous years) exclude refinancing of borrowings and lease liabilities, which was
Cash assets including short term bank year. These factors together, reduced the certain borrowings and lease liabilities at primarily due to the bond issued at the
ADDITIONAL
INFORMATION deposits are at a robust AED 17.0bn operating cash margin to 10.8% (2017- commercially better rates. end of last year and 10 aircraft acquired
(2017-18: 20.4bn). Complemented by 18: 15.3%). under finance lease this year.
The related cash inflows and outflows
committed offers to finance next year’s are reported at their gross values in the EBITDAR after debt service payments was
deliveries, these are expected to be EBITDAR and debt service consolidated statement of cash flows and AED 3.4bn and equated to 14 (2017-18:
sufficient to meet all obligations falling Cash profit from operations (EBITDAR) at in the relevant notes to the consolidated 16) months of payments. EBITDAR margin
due in the next financial year. AED 24.3bn (2017-18: AED 25.0bn) was financial statements. at 24.8% (2017-18: 27.0%) for the year was
The cash assets to total revenue fell to 2.7% lower than last year but still the third 2.2%pts. lower than last year.
highest ever reported by Emirates. Debt Debt service payments, excluding
17% (2017-18: 22%) and is below the operating leases, amounted to AED 8.9bn
target range of 25% +/- 5%. However, service payments of AED 20.9bn were
this is temporary and is expected to
improve as repayments of financial 2018-19 2017-18 2016-17 2015-16 2014-15
liabilities, primarily comprising of EBITDAR in AED bn 24.3 25.0 21.2 24.4 20.3
amortising borrowings & lease Less: Debt service
liabilities and trade & other payables, Repayment of bonds and loans (1.6) (1.0) (5.6) (1.7) (0.6)
are expected to be less onerous in the
Repayment of lease liabilities (5.4) (5.0) (4.4) (4.1) (5.6)
financial year 2019-20 compared to the
Operating lease rentals (12.0) (11.7) (10.5) (8.1) (6.9)
current year.
Finance costs (1.9) (1.3) (1.3) (1.2) (1.3)
Cash from operating activities
Total (20.9) (19.0) (21.8) (15.1) (14.4)
Cash generation from operating
activities of AED 10.5bn (2017-18: AED
EBITDAR after debt service in AED bn 3.4 6.0 (0.6) 9.3 5.9
92 14.1bn) fell by 25.5%. This was due
 Debt repayment profile in AED bn Debt collateralization in AED bn

127.6

127.4
THE EMIRATES GROUP

121.6
119.2
ANNUAL REPORT

111.4
2018-19 16.5

89.4
86.9

86.0
82.8
80.5
9.7 9.5

53.0
3.3

50.1

51.0

51.1
47.8
7.9 7.2 6.7 6.2
6.9 7.1
5.8 5.2 4.7 4.5
OVERVIEW
2.8 2.4 2.1 2.0 2.0 1.7 3.8

EMIRATES 19-20 20-21 21-22 22-23 23-24 24-25 >24-25 14-15 15-16 16-17 17-18 18-19
Lease liabilities Bonds and term loans Total assets Property, plant and equipment Total debt
DNATA

Net debt (including aircraft operating 450.00

Net debt (including aircraft operating Net debt (including aircraft operating Effective interest rate on borrowings
GROUP leases) to equity ratio in % leases) to EBITDAR ratio in % leases) and cash assets in AED bn and lease liabilities in %
4.0
83.5 80.2 79.2
406.25 392.9
237.9 70.0
FINANCIAL
INFORMATION 60.0
212.1 362.50
3.3
215.9 216.4 326.0
| EMIRATES 209.8
| FINANCIAL 318.75
321.0 3.2
| COMMENTARY 3.1
3.0
275.00 296.2
286.5 16.9 20.0 15.7 20.4 17.0
DNATA
FINANCIAL 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
COMMENTARY
Net debt Cash Assets
EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
Debt
FINANCIAL
STATEMENTS Emirates’ borrowings and lease liabilities
increased to AED 53.0bn, up by 3.8% or
ADDITIONAL
AED 1.9bn compared to the previous
INFORMATION
year (2017-18: AED 51.1bn). This was
driven by the delivery of 10 new aircraft
and accommodation units obtained
through finance lease structures offset
by the repayments of amortising bonds,
finance lease liabilities and term loans.
The non-current portion of borrowings
and lease liabilities amounted to AED
45.4bn (2017-18: 42.1bn) and represents
87% (2017-18: 86%) of the total non-
current liabilities while the current
portion of AED 7.6bn (2017-18: AED
9.0bn) accounted for 20% (2017-18:
22%) of the total current liabilities.
Net debt to equity ratio
The ratio of borrowings and lease
liabilities to total equity increased
to 141% (2017-18: 138%) due to an
increase in debt.
The net debt including aircraft operating
leases to equity ratio dropped to 209.8%
(2017-18: 216.4%) due to impacts of
higher net debt, lower aircraft operating
lease commitments and increase in
equity.
Net debt to EBITDAR ratio
The net debt including aircraft operating
leases to EBITDAR ratio increased to
326.0% (2017-18: 321.0%), due to lower
EBITDAR (down by 2.7%).
Debt repayment profile
We aim to achieve a stable repayment
profile by obtaining debt with periodic
instalments as opposed to bullet
payments. This enables us to manage Interest rate risk
debt servicing through our operating
cash flows and thus allowing the use of With our ongoing fleet expansion, we
surplus cash for investment purposes. As continue to use natural hedges and
at the balance sheet date, all of our debt other prudent hedging solutions such
was amortising in nature. as swaps to manage our interest rate
exposures. We target a risk-managed
Debt collateralisation portfolio approach, whilst taking
Of the total debt of AED 53.0bn, 86% advantage of market movements, with
or AED 45.7bn (2017-18: AED 45.1bn) long-term view of hedging around
is secured against property, plant and half of our interest rate risk exposures.
equipment. The remaining debt of AED Borrowings and lease liabilities (net of
7.3bn (2017-18: AED 6.0bn) is adequately cash) including the off balance sheet
covered against the carrying value of aircraft on operating leases at 31 March
unencumbered assets (property, plant 2019, comprise 65% on a fixed interest
and equipment) amounting to AED rate basis with the balance of 35% on
29.8bn (2017-18: AED 27.1bn). floating interest rates.
At 31 March 2019, borrowings and lease
liabilities carried an effective interest rate
of 4.0% (2017-18: 3.2%) which increased
due to the hike in LIBOR.

93
 Currency development Graph represents the monthly % change of our six major Capacity per airline employee in ATKM ‘000 Revenue per airline employee in AED ‘000
THE EMIRATES GROUP currency rates compared with previous year (2017-18)
ANNUAL REPORT 15% 18-19 1,325 18-19 1,975
2018-19
Heading heading
10% 17-18 1,235 17-18 1,784

5%
16-17 1,171 16-17 1,580
0%
OVERVIEW
15-16 1,174 15-16 1,717
-5%
14-15 1,141 14-15 1,939
EMIRATES
-10%

DNATA -15%
INR ZAR AUD GBP CNY EUR Employee strength (in numbers) 2018-19 2017-18 % change
GROUP -20% UAE
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Geographical work force including subsidiaries in % Cabin crew 21,691 23,135 (6.2)
FINANCIAL Flight deck crew 4,134 4,157 (0.6)
INFORMATION
Engineering 3,330 3,374 (1.3)
| EMIRATES Others 12,958 13,189 (1.8)
| FINANCIAL 90%
| COMMENTARY
UAE Total UAE 42,113 43,855 (4.0)
Overseas stations 5,695 5,885 (3.2)
DNATA
FINANCIAL
10% Total airline 47,808 49,740 (3.9)
COMMENTARY Overseas

EMIRATES Subsidiary companies 12,474 12,616 (1.1)

CONSOLIDATED
FINANCIAL Average employee strength 60,282 62,356 (3.3)
STATEMENTS

DNATA
CONSOLIDATED
Currency risk
FINANCIAL
STATEMENTS Nearly 36% of our transport revenues are
generated in US Dollar or in countries
ADDITIONAL
INFORMATION
which have currencies pegged to USD.
Currencies were highly volatile this
year for our markets in the Indian
subcontinent, Africa, Australia and
South America.
We generate a substantial net surplus in
Euro, Pound Sterling, Australian Dollar,
Indian Rupee, Chinese Yuan, South
African Rand, Swiss Franc, Japanese Yen
and Pakistani Rupee. We proactively
manage the currency exposure
generally over a period up to 12 months
depending on market conditions
by using prudent hedging solutions
including forward contracts, currency
swaps and natural hedges.
The foreign currency graph depicts the
percentage change in average monthly
currency rates of our six major currencies
compared with the previous year.
94
With the strengthening of US Dollar Employee strength and improved due to the growth in revenues
against global currencies, our revenue productivity and capacity and the reduction in
generation in the Indian subcontinent employee count:
and Australia suffered in AED terms. We The average workforce fell by 3.3% to
• Revenue per airline employee has
were also impacted by sizable currency 60,282.
improved to AED 1,975 thousand
devaluations in Africa. The average number of employees (2017-18: AED 1,784 thousand), a
The movements in exchange rates in the airline decreased by 1,932 or 10.7% upside due to growing airline
compared to the previous year had an 3.9% to 47,808. Employee numbers revenues and a reduction in employee
overall adverse impact of AED 0.6bn have fallen across the business driven numbers.
on Emirates operating results (2017- by a recruitment slowdown, natural
• Capacity per airline employee is up
18: positive impact AED 0.7bn). The attrition arising from retirements and
7.3% at 1,325 thousand ATKM (2017-
following six currencies account for circa resignations. New ways of working
18: 1,235 thousand ATKM) due to a
44% (2017-18: 44%) of our transport driven by technology, better processes
3.1% increase in capacity and a 3.9%
revenue: and people management led to higher
reduction in airline employee count.
productivity.
Currency average rate (in AED) Overseas station employee numbers • The load carried per airline employee
declined by 3.2% to 5,695 (2017-18: improved to 885 thousand RTKM
2018-19 2017-18 % change (2017-18: 829 thousand RTKM), up by
5,885).
INR 0.053 0.057 (7.0) 6.8% due to a 2.6% upside on overall
ZAR 0.268 0.286 (6.3) On an average, workforce in the load carried and a drop in airline
subsidiary companies marginally workforce.
AUD 2.675 2.846 (6.0)
reduced compared to the prior year.
GBP 4.808 4.907 (2.0)
CNY 0.546 0.557 (2.0) The airline’s employee productivity
EUR 4.243 4.325 (1.9)
related key performance indicators
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

EMIRATES
FINANCIAL
COMMENTARY

| DNATA
| FINANCIAL
| COMMENTARY

EMIRATES

F I N A N C I A L C O M M E N TA R Y
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
FINANCIAL

D N ATA
STATEMENTS

ADDITIONAL
INFORMATION

95
 Profit attributable to the Owner in AED m Profit margin in % Total revenue trend in AED bn Geographical revenue in %
THE EMIRATES GROUP 14.4
1,445
ANNUAL REPORT 1,317 13.1
2018-19 1,054
1,210
10.6
12.2 66 64 66 68 70
906 9.2
9.9 9.9 10.1 10.0
9.9

OVERVIEW
34 36 34 32 30

EMIRATES 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
International UAE
DNATA

Operating profit in AED m Operating margin in % Return on shareholder’s funds in % Acquisitions in AED m
GROUP 1,278 664
1,224 1,196 616
1,005 1,061 11.0
FINANCIAL
INFORMATION 10.0 20.7 20.3
10.0 338
19.3 19.2
EMIRATES 9.1
FINANCIAL 8.9 19.2
COMMENTARY 114
20
| DNATA
| FINANCIAL 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
| COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
dnata marked its 60th year of operations with
strong revenues, profits and cash reserves as
FINANCIAL
STATEMENTS we marched ahead in our journey to become
the leading, most admired and globally
ADDITIONAL recognised air-services provider.
INFORMATION
dnata’s growth story, over the last 10 years,
has been phenomenal with our presence now
in 37 countries leading to significant increases
in revenues and profits. The two-pronged
growth strategy of international acquisitions,
which add leverage to our core operations
and are aligned to our values, and organic
expansion continue to bring great results. A
diversified business model underpinned by
excellent customer service helped dnata add
one more successful chapter to its history.
All four core lines of business – international
airport operations, travel services, UAE
airport operations and inflight catering saw
sturdy growth in revenues. This year’s profits,
however, were augmented by one-off income
from the divestment of our 22% stake in Hogg
Robinson Group plc (“HRG”).
dnata continued to lay the foundations for
future growth by investing AED 1.2bn in new
facilities and equipment, acquisitions and
leading-edge technologies.
96
Acquisitions
In the financial year 2018-19, dnata expanded
its presence through acquisitions primarily
in inflight catering and travel businesses,
and reached new markets and customers in
Australia, the US, Europe and the UAE.
In Australia, our inflight catering business grew
after the 100% acquisition of the catering
business of Qantas Airways comprising of
Qantas Catering Group Limited (‘Q catering’)
and Snap Fresh Pty Limited (‘Snap Fresh’)-
together ‘Qantas Catering’. Q catering has
centres in four Australian ports – Sydney,
Melbourne, Brisbane and Perth, with its
largest airline customer being Qantas. Under
the agreement, dnata will supply catering
to Qantas flights for an initial period of ten
years. Snap Fresh operates an off-airport food
development, production and preparation
facility, which caters to a wide range of
industries. In the US, we acquired a majority
stake in 121 Group International LLC (‘121
Inflight Catering’), an inflight catering business
servicing commercial airlines and private jets.
In our travel business, we increased our share
in the European market through acquisitions
in Germany; 100% stake was acquired in
Tropo GmbH (‘Tropo’) and 73% in BD4 Travel
Limited (‘BD4travel’). Tropo is a tour and travel
operator and BD4travel is an award-winning
technology company that provides artificial
intelligence (AI) driven IT solutions to online
travel agencies.
In our UAE airport operations, we acquired a
70% stake in Dubz Holding Limited (‘DUBZ’),
a group which specialises in home and hotel
check-in services for airline passengers in
Dubai. We also increased our stake in Bolloré
Logistics LLC, one of the country’s largest
logistic solutions providers, and became sole
owners of Dubai Express LLC and Freightworks
Logistics LLC. They are Dubai-based
international multimodal freight forwarders,
logistics and supply chain providers.
In our international airport operations we
increased our stake in Airport Handling SpA, a
Milan based ground handler, from 30% to 70%.
Profitability
Profit attributable to the Owner stood at AED
1.4bn (2017-18: AED 1.3bn) and cash assets
increased to highest-ever AED 5.1bn (2017-18:
AED 4.9bn). The financial year 2018-19 also
saw the completion of divestment of our
minority stake in HRG. The gain recorded
on this disposal, amounting to AED 321m, is
included within ‘other operating income’.
Our continued focus on quality, safety, people,
and customers reaped benefits this year. We
continued to drive efficiencies across all our
businesses in costs, processes and resources.
However, these gains were diminished by
one-time charges recognised in relation to
impairments in Plafond, our Dubai based fit-
out company, and legal claims in the US.
Our operating profit margin was almost
consistent at 8.9% (2017-18: 9.1%) and our
profit margin closed at 10.0% (2017-18:
10.1%).
The return on shareholder’s funds remained
healthy at 19.2% (2017-18: 19.3%).
Total revenue (including other
operating income)
dnata’s total revenue grew strongly by 10.3% to
AED 14.4bn (2017-18: AED 13.1bn).
Revenue from all major lines of business set
new records. The highest growth of 22.6% or
AED 0.5bn was achieved by our inflight catering
business, chiefly as a result of acquisitions made
during the year.
Overall, the share of geographic revenue
from operations outside the UAE continues to
grow and stands at 70% (2017-18: 68%). This
is consistent with dnata’s strategy to grow its
international businesses in a sustainable manner.
 Revenue by Line of Business Catering Travel services
THE EMIRATES GROUP - Meals uplifted number in millions - Total Transaction Value (TTV) in AED bn
ANNUAL REPORT
Revenue in AED m 2018-19 2017-18 % change % of total 18-19 70.9 18-19 11.5
2018-19 International airport operations 3,997 3,803 5.1 28.8
17-18 55.7 17-18 11.3
Travel services 3,678 3,384 8.7 26.5
UAE airport operations 3,223 3,153 2.2 23.2 16-17 60.7 16-17 10.7
Inflight catering 2,630 2,146 22.6 18.9
15-16 57.1 15-16 11.7
OVERVIEW Other services 360 445 (19.1) 2.6
Total 13,888 12,931 7.4 100.0 57.7 9.8
EMIRATES 14-15 14-15

DNATA

International airport operations International airport operations UAE airport operations UAE airport operations
GROUP - Aircraft handled - Cargo handled - in tonnes ‘000 - Aircraft handled - Cargo handled - in tonnes ‘000
18-19 488,225 18-19 2,364 18-19 210,514 18-19 727
FINANCIAL
INFORMATION 17-18 448,553 17-18 2,352 17-18 211,038 17-18 731

EMIRATES 16-17 407,915 16-17 2,130 16-17 215,696 16-17 714

FINANCIAL
COMMENTARY
15-16 178,228 15-16 1,367 15-16 211,184 15-16 689
| DNATA
| FINANCIAL 14-15 109,546 14-15 937 14-15 188,752 14-15 734
| COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA International airport operations
CONSOLIDATED
FINANCIAL International airport operations continues
STATEMENTS to be the largest business segment of dnata
by revenue. As a result of organic growth,
ADDITIONAL
this business showed a 5.1% improvement
INFORMATION
in revenue to AED 4.0bn (2017-18: AED
3.8bn). The quality of service and high safety
standards helped us win new contracts
and retain existing customers. We also
commenced services in more airports and
invested in new facilities.
This year we inked over 115 contracts with
new or existing customers in important
markets. New ground handling services
were launched at Los Angeles airport in
the US - our 83rd ground handling station.
Cargo handling operations expanded to
Belgium by the opening of a new 14,000 m2
cargo centre at Brussels airport. Additional
investments were made at London Gatwick
and Manchester airports to cater to our
customers’ demand. New contracts won this
year and in the last half of 2017-18, boosted
revenues in the US, Brazil, Italy and the UK.
This year, the Australian Dollar and Brazilian
Real weakened against the UAE Dirham and
had an unfavourable impact on revenue.
We also completed 25 years at our 1st
overseas operation, Gerry’s dnata in
Pakistan. Growth in terms of aircraft
handled was 8.8% to 488,225 (2017-18:
448,553) whilst cargo tonnage handled was
marginally up at 2,364 thousand tonnes
(2017-18: 2,352 thousand tonnes).
Travel services
Travel services revenue forms 27% (2017-
18: 26%) of dnata’s revenue which increased
by 8.7% to AED 3.7bn (2017-18: AED
3.4bn). This was driven by growth in trading
volumes in our UK businesses. Holiday
package sales, operating under the brand
name of Emirates Holidays, witnessed
a sharp uplift. The acquisitions made in
Germany this year, namely Tropo and
BD4travel, and Destination Asia - acquired
last year, helped increase revenue by 3.3%.
The underlying Travel services related
turnover measured by Total Transaction
Value (TTV) marginally increased to AED
11.5bn (2017-18: AED 11.3bn), in spite of
tough trading conditions across the UAE
and the UK. Our travel business in Europe
now accounts for 83% of dnata travel
revenue.
This year also saw our contact centre
division taking over Etihad’s Global Contact
Centre operations for a 5-year term.
UAE airport operations
UAE airport operations touched revenue
of AED 3.2bn (2017-18: AED 3.2bn). The
growth of 2.2% primarily comes from
ground handling operations at Dubai
International Airport (DXB) and as a result
of full ownership in Dubai Express and
Freightworks, previously our associate
companies. Our ‘marhaba’ offerings
continued to contribute to the growth
as they welcomed their one millionth
customer in Dubai and celebrated the 1st
anniversary of their lounge in Melbourne.
Volumes for both aircraft and cargo
handled have marginally declined from
the previous year, due to the reduction in
traffic in and out of DXB primarily relating
to Qatar.
Inflight catering
Revenue from catering activities forms
19% (2017-18: 17%) of dnata’s revenue
which accelerated by 22.6% to AED 2.6bn
(2017-18: AED 2.1bn). This was due to the
acquisitions of the catering business of
Qantas Airways which has nearly doubled
our share of the Australian inflight catering
market. Also the acquisition of 121 Inflight
Catering, a New York based inflight caterer
for VIP and commercial airlines, aided in
increasing the top line. Organic growth,
through new customers, was achieved in
the UAE, Romania and Czech Republic.
Similar to international airport operations,
the Australian Dollar’s depreciation against
the UAE Dirham negatively impacted this
year’s inflight catering revenue.
Our Australian operations also saw the
inauguration of an ultra-modern catering
facility in Canberra with an investment of
AUD 6.5m. This facility has the capacity to
produce more than 60,000 meals a month
for commercial and charter airlines.
Meals uplifted during the financial year
rose by 27.2% to 70.9m (2017-18: 55.7m),
resulting from the new businesses on-
boarded and stronger volumes in existing
businesses.
97
 Operating costs in AED bn Operating costs in %
THE EMIRATES GROUP 41.0% Employee costs
ANNUAL REPORT 13.1
11.9 18.8% Travel services direct costs
2018-19 9.6
11.0 10.3% Airport operations direct costs
8.2 8.1% Inflight catering direct costs
6.0% Rental and lease expenses
3.5% Depreciation and amortisation
2.8% Sales and marketing expenses
OVERVIEW 1.9% Information technology infrastructure costs
7.1% Corporate overheads (including impairment of intangible assets)
EMIRATES 14-15 15-16 16-17 17-18 18-19 0.5% Other direct costs

DNATA

Employee cost as % of total operating costs Operating costs in AED m 2018-19 2017-18 % change 2018-19 as %
of operating
GROUP
18-19 41 59 cost

FINANCIAL Employee costs 5,386 5,055 6.5 41.0

17-18 43 57
INFORMATION Direct costs
16-17 42 58 - Travel services 2,476 2,135 16.0 18.8
EMIRATES
FINANCIAL - Airport operations 1,350 1,293 4.4 10.3
COMMENTARY 15-16 40 60 - Inflight catering 1,070 843 26.9 8.1
| DNATA - Other 67 130 (48.5) 0.5
| FINANCIAL 14-15 41 59
| COMMENTARY Rental and lease expenses 788 688 14.5 6.0
Employee costs Other operating costs
Depreciation and amortisation 459 440 4.3 3.5
EMIRATES
CONSOLIDATED Sales and marketing expenses 370 381 (2.9) 2.8
FINANCIAL
STATEMENTS Information technology infrastructure costs 246 210 17.1 1.9
Corporate overheads (including impairment of intangible assets) 929 703 32.1 7.1
DNATA
CONSOLIDATED
Expenditure Total operating costs 13,141 11,878 10.6 100.0
FINANCIAL
STATEMENTS
dnata’s operating costs stood at AED
13.1bn (2017-18: AED 11.9bn), an
ADDITIONAL increase of 10.6% compared to last year. costs up. More than 2,200 employees for travel packages sold where dnata Other operating costs
INFORMATION joined our workforce as a result of acts as the principal and recognises Rental and lease expenditure stood at
Overall, the increase in operating costs these acquisitions. Further, growth in revenue on a gross basis. Moreover, AED 788m (2017-18: AED 688m), an
was due to acquisitions made during the our airport operations business (being the tough operating environment in increase of 14.5% driven primarily by
year and organic growth in all existing staff intensive) primarily in the US, the UK put the margins under pressure, new kitchen facilities in Australia, Ireland
lines of business. The results were Italy, Australia and Brazil also led to the resulting in direct costs outpacing the and the US.
also negatively impacted by one-time increase in cost. increase in revenue.
charges recognised towards impairments Depreciation and amortisation is higher
of intangible assets and trade Direct costs Direct costs in Airport operations were compared to previous year due to
receivables of Plafond. Weakening of AED 1.4bn (2017-18: AED 1.3bn) and tangible and intangible assets added
Direct costs form 38% (2017-18: 37%) of
global currencies against the US Dollar increased by 4.4% due to the growing from acquisitions and investments made
total operating costs. These costs were
neutralised these impacts partially. footprint in the US and increased stakes across all four business units, particularly
12.8% higher than the previous year, at
in our UAE businesses. in ground support equipment (‘GSE’)
AED 5.0bn (2017-18: AED 4.4bn).
Employee costs fleet and new kitchen facilities.
Inflight catering related direct costs
Employee costs, which form 41% The volume growth in our UK travel
were AED 1.1bn (2017-18: AED 0.8bn), Corporate overheads at AED 929m
(2017-18: 43%) of total operating costs, portfolio particularly Emirates Holidays
increasing by 26.9% principally due to (2017-18: AED 703m) were up 32.1% due
increased by 6.5% to AED 5.4bn (2017- and the acquisitions of Tropo and
new acquisitions. to impairment of intangible assets and
18: AED 5.1bn). Qantas Catering and BD4travel lifted the direct costs for travel
services by 16% to AED 2.5bn (2017-18: The reduction in ‘Other’ direct costs is receivables in Plafond.
121 Inflight Catering acquisitions are the
major factors in driving the employee AED 2.1bn). These costs include the cost the result of reduced activity in Plafond.

98
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 Assets in AED bn Equity and liabilities in AED bn

Assets in AED m 2018-19 2017-18 change % change
PPE, investment property and
15.1 15.1 intangible assets 5,424 4,987 437 8.8
14.3 14.3
Other non-current assets 772 731 41 5.6
OVERVIEW 5.4 Cash assets 5,122 4,945 177 3.6
5.0 8.0
Other current assets* 3,773 3,629 144 4.0
7.3
EMIRATES Total 15,091 14,292 799 5.6
0.8 *including asset classified as held for sale
0.7
DNATA
PPE, investment
property and
GROUP 5.1 5.0 intangible assets 2.1 1.7
Equity and liabilities in AED m 2018-19 2017-18 change % change
Other non- Equity
FINANCIAL current assets Equity 8,027 7,282 745 10.2
INFORMATION Cash assets 5.3 Non-current Non-current liabilities 2,126 1,734 392 22.6
5.0 liabilities
3.8 3.6 Current liabilities 4,938 5,276 (338) (6.4)
EMIRATES Other current Current
FINANCIAL
assets liabilities Total 15,091 14,292 799 5.6
COMMENTARY
18-19 17-18 18-19 17-18
| DNATA
| FINANCIAL
| COMMENTARY

EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
Statement of financial position
FINANCIAL
STATEMENTS Assets
Total assets grew by 5.6% or AED 0.8bn
ADDITIONAL
INFORMATION to AED 15.1bn (2017-18: AED 14.3bn).
Property, plant and equipment (‘PPE’),
investment property and intangible
assets stood at AED 5.4bn (2017-18: AED
5.0bn), increasing by 8.8% due to new
acquisitions and various investments
made across all four lines of business to
support the growing operations.
The net increase in PPE of AED 0.4bn was
driven by new acquisitions in Australia,
the US, Germany and the UAE, which
increased PPE by AED 181m. We also
made significant investments in our
GSE – choosing green or hybrid options.
New GSE fleet was acquired both in the
UAE and in our international businesses,
predominantly in the US to handle new
operations in Nashville, Baltimore and
Los Angeles. Further, in January 2019,
our inflight catering division inaugurated
a new state-of-the-art kitchen facility in
Canberra, Australia to enhance service
offerings while our travel business added
a new office building in the UK.
Intangible assets of AED 3.0bn (2017-
18: AED 2.8bn) form 49% of dnata’s
non-current assets. New acquisitions
added AED 404m to goodwill and other
intangible assets. Goodwill continues to
form the largest portion of the intangible
asset portfolio at 72% (2017-18: 74%)
which is validated on an annual basis
through impairment testing. This year,
an impairment charge of AED 78m was
taken on our investment in Plafond, as
future cash flows struggled to support
the carrying value of goodwill and
customer relationship assets in a difficult
market.
dnata continues to invest in the
latest technology to stay ahead of its
competition, making sizable additions in
cyber security, financial systems, travel
related websites and other technological
developments.
A strong US Dollar reduced the value of
PPE and intangible assets by AED 220m.
Investments accounted for using the
equity method (including those classified
as held for sale) stood at AED 503m
(2017-18: AED 519m). This drop was due
to the sale of our stake in HRG offset to
some extent by an increased stake in
Bolloré Logistics.
Inventory levels increased by 64% to
AED 143m (2017-18: AED 87m) due to
higher food and beverages related stock
in our catering businesses – largely in
Australia and the US.
Trade and other receivables, increased by
AED 98m or 2.7% to AED 3.7bn (2017-18:
AED 3.6bn), resulting from the organic
growth across all business lines, partly
offset by impairment of receivables in
Plafond.
Equity
Total equity at AED 8.0bn (2017-18: AED
7.3bn) reflects a growth of 10.2% over
the last year due to record profits for
the year. During the year, we declared a
dividend of AED 500m to the Owner.
Liabilities
Borrowings and lease liabilities increased
by 39% to AED 1.6bn (2017-18: AED
1.2bn). Term loans form almost 90% of
the total borrowings and lease liabilities.
The increase in term loans of AED 0.4bn
was due to loans taken to fund new
acquisitions, amounting to AED 613m
reduced by repayments of AED 156m. A
strong US Dollar positively impacted this
balance.
Trade and other payables stood at
AED 4.6bn (2017-18: AED 5.0bn), a
decrease of 9.1% due to the settlement
of previous year’s dividend amounting
to AED 1bn, offset by the current year
dividend payable of AED 0.5bn.
99
 Free cash flow in AED m Operating cash margin in % Cash flow in AED m
THE EMIRATES GROUP

1,858
ANNUAL REPORT

2018-19 561

1,445
1,390

1,417
1,417 643

1,281
1,068
1,058
14.2

893

856
13.1 4,872 5,027
9.8
11.6

206
OVERVIEW 10.5 Cash assets Net cash Net cash Net cash Cash assets
net of bank generated used in used in net of bank
overdrafts as from operating investing financing overdrafts as
EMIRATES 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 at 31 March 18* activities activities activities at 31 March 19*
Cash from operating activities Free cash flow * Includes the effects of exchange rate changes
DNATA

Geographical work force in % Total revenue per employee in AED ‘000

GROUP
18-19 320

FINANCIAL
17-18 319
INFORMATION 61% Overseas
Employee strength (in numbers)
EMIRATES
16-17 297
FINANCIAL 39% UAE 2018-19 2017-18 % change
COMMENTARY International airport operations 17,959 16,138 11.3 15-16 333

| DNATA UAE airport operations 12,785 12,336 3.6

| FINANCIAL 14-15 399
| COMMENTARY
Inflight catering 7,041 4,761 47.9
Travel services 4,548 4,257 6.8
EMIRATES
Others 2,671 3,515 (24.0)
CONSOLIDATED
FINANCIAL Average employee strength 45,004 41,007 9.7
STATEMENTS

DNATA
CONSOLIDATED
Cash position Average employee count for Travel
FINANCIAL services increased by 6.8% to 4,548
STATEMENTS Cash from operating activities represents dnata’s investment of AED operations, the workforce employed (2017-18: 4,257) primarily due to
1.2bn in new acquisitions and other overseas now forms 61% (2017-18: 57%) the strengthening of our workforce
ADDITIONAL Cash generated from operating
non-current assets, offset by cash inflows of the total. in our Contact Centre to service the
INFORMATION activities closed at AED 1.4bn (2017-
of AED 0.4bn from the disposal of our recently won contract to run global
18: AED 1.9bn), down by AED 0.5bn International airport operations employs
ownership interest in HRG and interest contact centres of Etihad Airways. The
from last year’s record number. As a 40% of our group workforce (2017-18:
income of AED 0.1bn. With regards to acquisition of Tropo and BD4travel in
result, operating cash margin fell to 39%) and continues to be the largest
financing cash outflows of AED 0.6bn, Germany also increased our overall staff
9.8% (2017-18: 14.2%). This reduction is business division of dnata in terms of
dnata paid a dividend of AED 1bn to strength.
primarily driven by increased investment workforce with an employee count
the Owner and generated AED 0.4bn -
in working capital due to dnata’s of 17,959. The increase is due to the Staff numbers in ‘Others’ fell by 24.0%
net from proceeds of loans and lease
entry into new markets. Also, difficult significant expansion of operations in to 2,671 (2017-18: 3,515) as a result
liabilities.
economic conditions in certain markets Europe and the Americas. of significant reduction in the Plafond
put pressure on the operating cash workforce as the business battles difficult
flows. Employee strength and UAE airport operations workforce
increased marginally by 3.6% to 12,785 trading and economic conditions.
productivity
Cash assets (2017-18: 12,336) as a result of our UAE
Productivity
Cash assets increased by 3.6% to AED
Employee strength based acquisitions.
Total revenue per employee was stable
5.1bn (2017-18: AED 4.9bn). In addition The average workforce increased by Our inflight catering business saw the at AED 320 thousand (2017-18: AED 319
to generation of cash from operating 9.7% compared to last year and stands largest increase in workforce this year thousand) as dnata integrates the newly
activities of AED 1.4bn, dnata used AED at 45,004 (2017-18: 41,007). with staff number growing by 47.9% acquired businesses and continues its
0.6bn in investing activities and another to 7,041 (2017-18: 4,761). Most of this expansion journey.
With the sizable acquisitions and growth
AED 0.6bn in financing activities. Cash increase came from acquisitions in
in labour intensive international airport
used in investing activities of AED 0.6bn Australia and the US.

100
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW
Independent Auditor’s Report to the Owner of Emirates
EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION
Our opinion
EMIRATES
FINANCIAL In our opinion, the consolidated financial statements present fairly, in all material Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”)
COMMENTARY respects, the consolidated financial position of Emirates and its subsidiaries (together and the ethical requirements that are relevant to our audit of the consolidated
referred to as “Emirates”) as at 31 March 2019, and its consolidated financial financial statements in the United Arab Emirates. We have fulfilled our other ethical
| DNATA
DNATA
| FINANCIAL
FINANCIAL performance and its consolidated cash flows for the year then ended in accordance responsibilities in accordance with these requirements and the IESBA Code.
| COMMENTARY
COMMENTARY
with International Financial Reporting Standards (“IFRS”).
| EMIRATES
EMIRATES
Our audit approach
| CONSOLIDATED
CONSOLIDATED What we have audited
| FINANCIAL
FINANCIAL Overview
| STATEMENTS
STATEMENTS Emirates’ consolidated financial statements comprise:
As part of designing our audit, we determined materiality and assessed the risks of
DNATA ● the consolidated income statement for the year ended 31 March 2019;
material misstatement in the consolidated financial statements. In particular, we
CONSOLIDATED
FINANCIAL
● the consolidated statement of comprehensive income for the year ended 31 March 2019; considered where management made subjective judgements; for example, in respect
STATEMENTS ● the consolidated statement of financial position as at 31 March 2019; of significant accounting estimates that involved making assumptions and considering
ADDITIONAL ● the consolidated statement of changes in equity for the year ended 31 March 2019; future events that are inherently uncertain. As in all of our audits, we also addressed
INFORMATION the risk of management override of internal controls, including among other matters
● the consolidated statement of cash flows for the year ended 31 March 2019; and
consideration of whether there was evidence of bias that represented a risk of material
● the notes to the consolidated financial statements, which include a summary of misstatement due to fraud.
significant accounting policies.
The areas, in our professional judgement, that are of most significance to the audit
Basis for opinion (“Key audit matters”) and where we focused most audit effort during the year were:
We conducted our audit in accordance with International Standards on Auditing Key audit matters ● Passenger and cargo revenue recognition
(“ISAs”). Our responsibilities under those standards are further described in the ● Accounting for the “Skywards” frequent flyer programme
Auditor’s responsibilities for the audit of the consolidated financial statements section ● Lease classification and the related lease accounting
of our report. ● Provision for aircraft return conditions
We believe that the audit evidence we have obtained is sufficient and appropriate to
We tailored the scope of our audit in order to perform sufficient work to enable us to
provide a basis for our opinion.
provide an opinion on the consolidated financial statements as a whole, taking into
account the structure of Emirates, the accounting processes and controls, and the
Independence
industry in which Emirates operates.
We are independent of Emirates in accordance with the International Ethics Standards

PricewaterhouseCoopers (Dubai Branch), License no. 102451, Emaar Square, Building 4, Level 8, P O Box 11987, Dubai - United Arab Emirates T: +971 (0)4 304 3100, F: +971 (0)4 346 9150, www.pwc.com/me
Douglas O’Mahony, Rami Sarhan, Jacques Fakhoury and Mohamed ElBorno are registered as practising auditors with the UAE Ministry of Economy 101
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of Emirates (continued)
2018-19

Key audit matters

OVERVIEW Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the current year. These
matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
EMIRATES opinion on these matters.

DNATA
Key audit matter How our audit addressed the Key audit matter
GROUP
Passenger and cargo revenue recognition We performed detailed end-to-end walkthroughs of the finance
and operational processes surrounding the revenue systems,
FINANCIAL When a flight booking is made, passenger and cargo revenue is measured based on the sales utilising our understanding of the industry and Emirates, to
INFORMATION price to the customer and allocated to each performance obligation under the contract. Revenue assess the design effectiveness of the related key internal controls
is initially deferred on the consolidated statement of financial position and subsequently and identify changes, if any.
EMIRATES
FINANCIAL
recognised in the consolidated income statement when the related performance obligation has
COMMENTARY been fulfilled (typically when a passenger or the cargo has flown) (refer to notes 2, 3, 5 and 29 to We tested the operating effectiveness of these key controls
the consolidated financial statements). to obtain sufficient, appropriate evidence that they operated
| DNATA
DNATA throughout the year as intended. We tested the key IT systems,
| FINANCIAL
FINANCIAL The determination of the amount of revenue to be recognised for each flight requires complex IT including interfaces that impact the recognition of revenue from
| COMMENTARY
COMMENTARY systems and involves the exchange of information with industry systems and other airlines for a passenger and cargo sales along with the IT change control
high volume of transactions. procedures and related application controls.
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED
The accounting for passenger and cargo revenue is susceptible to management override of
| FINANCIAL
FINANCIAL We performed tests of details over passenger and cargo revenue
| STATEMENTS
STATEMENTS controls through the recording of manual journals in the accounting records, the override of and substantively tested manual journal entries posted into
IT systems to accelerate revenue recognition, or the manipulation of inputs used to calculate relevant revenue accounts in the sub-ledgers and general ledger.
DNATA revenue recorded in respect of unused revenue documents.
CONSOLIDATED We obtained data supporting Emirates’ historical expiry trend in
FINANCIAL The timing of revenue recognition for unused revenue documents requires judgement due to the respect of unused revenue documents. In addition to performing
STATEMENTS
timeframe over which revenue documents can be utilised and the large number of fare types sold controls based testing as described above, we tested the accuracy
ADDITIONAL by Emirates. Management has determined the value of unused revenue documents that will not of historical expiry data and compared this data to that used
INFORMATION be utilised based on their terms and conditions and historical expiry trends. by Emirates in their calculation of the amount of revenue to
We focused on this area as a result of the complexity of the related IT systems, the potential recognise from unused revenue documents.
for management override of controls and the level of judgement required by management in We assessed whether the related disclosures in notes 2, 3, 5 and
determining the timing of recognition of unused revenue documents. 29 to the consolidated financial statements are consistent with
the requirements of IFRS.

102
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of Emirates (continued)
2018-19
Key audit matter
OVERVIEW Accounting for the “Skywards” frequent flyer programme
EMIRATES Emirates operates a frequent flyer programme (“Skywards”) in order to encourage and
incentivise loyalty from its customers. Skywards members either earn Skywards miles after
DNATA
a flight has been paid for and flown or from Skywards partners who purchase miles from
Emirates to issue to their customers. Skywards miles can be redeemed for reductions in
airfares as well as being used towards free flights, cabin class upgrades and other non-airline
GROUP
rewards.
FINANCIAL
The fair value of unused miles issued to Skywards members when flights are flown, and
INFORMATION the consideration received for miles issued to Skywards members from sales to partners
with a total value of AED 2,009 million (2018: AED 2,243 million), is recognised in the
EMIRATES consolidated statement of financial position as deferred revenue (refer notes 2, 3 and 26 to
FINANCIAL
COMMENTARY
the consolidated financial statements). Revenue is recognised in the consolidated income
statement when the miles are redeemed by a customer and the underlying performance
| DNATA
DNATA obligation relating to the redeemed miles is fulfilled.
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY The fair value per mile is based on a relative standalone selling price calculated using a
model incorporating a number of factors including historical sector average fares, historical
| EMIRATES
EMIRATES
fares for upgrades, ticket and upgrade availability and redemption patterns. An estimate is
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL also made of the number of miles that will expire based on historical expiry patterns and
| STATEMENTS
STATEMENTS known future changes to the Skywards programme.
DNATA This is a Key audit matter because of the significant level of judgement exercised by
CONSOLIDATED management in determining the underlying assumptions within the model.
FINANCIAL
STATEMENTS
ADDITIONAL Lease classification and the related lease accounting
INFORMATION
Emirates operates aircraft under both finance and operating lease arrangements and during
the year has entered into sale and leaseback transactions on new aircraft deliveries (refer to
notes 2, 3, 19 and 22 to the consolidated financial statements).
In determining the appropriate lease classification, IAS 17 – “Leases” is applied by Emirates
and the substance of the transaction rather than just the legal form is considered. Factors
considered include, but are not limited to, the following:
● whether the lease transfers ownership of the aircraft to Emirates by the end of the lease
term;
● whether Emirates has the option to purchase the aircraft at a price that is substantially
lower than the fair value on exercise date;
● whether the lease term is for the major part of the economic life of the aircraft; and
● whether the present value of the minimum lease payments amounts to substantially all of
the fair value of the leased aircraft.
Profits or losses on sale and leaseback transactions are either recognised immediately or
deferred in accordance with the finance and operating leases accounting policy set out in
note 2 to the consolidated financial statements.
We focused on this area because the accounting implications for leases, including the
presentation within the consolidated financial statements, are substantially different
depending on the classification determined, and because of the inherent level of
management judgement within the assessment of lease classification and accounting for
sale and leaseback transactions, together with the materiality of the related balances.
How our audit addressed the Key audit matter
We tested management’s model supporting the calculation of Skywards
deferred revenue as follows:
● we understood the process and related controls by which deferred
revenue is calculated;
● we tested automated controls and key interfaces between the IT
systems used to initially accrue and subsequently redeem the Skywards
miles for each member;
● we reconciled the Skywards miles issued and redeemed during the year,
and the closing miles balance in the model to the underlying IT systems;
● we tested the mathematical accuracy of management’s model;
● we tested the key assumptions within management’s model, including
agreeing historical expiry trends supporting the expiry percentage and
agreeing historical sector average fares and historical fares for upgrades
to underlying reports, discussing anticipated future changes to the
Skywards programme that may impact expiry trends with appropriate
senior management and testing ticket and upgrade availability to
internal supporting evidence; and
● we performed a sensitivity analysis on the key assumptions and
variables used in management’s model.
We assessed whether the disclosures in notes 2, 3, and 26 to the
consolidated financial statements are consistent with the requirements
of IFRS.
We evaluated management’s assessment of lease classification under IFRS
to determine whether a lease is considered to be finance or operating in
nature.
We examined the lease agreements for aircraft deliveries during the year to
identify:
● whether the lease transfers ownership of the aircraft to Emirates by the
end of the lease term;
● whether Emirates has the option to purchase the aircraft at a price that is
substantially lower than the fair value on exercise date; and
● whether the lease term is for the major part of the economic life of the
aircraft.
We undertook independent calculations to assess whether the present value
of the minimum lease payments amounts to substantially all of the fair value
of the leased aircraft.
In the case of sale and leaseback transactions on new aircraft resulting in an
operating lease, we compared the fair values of the aircraft to the purchase
price and recalculated the profit or loss on these transactions. We tested
whether management appropriately accounted for the profit or loss arising
from these transactions.
We assessed whether the related disclosures in notes 2, 3, 19 and 22 to the
consolidated financial statements are consistent with the requirements of IFRS.
103
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of Emirates (continued)
2018-19

Key audit matter How our audit addressed the Key audit matter
OVERVIEW
Provision for aircraft return conditions We obtained the aircraft return provision model prepared by management, together with a
summary of the underlying assumptions.
EMIRATES
Emirates operated 148 aircraft under operating lease arrangements We tested the completeness of the provision by ensuring that all significant return condition
at 31 March 2019 (2018: 158). obligations included in aircraft operating lease contracts were included in the model.
DNATA

Under the terms of the operating lease arrangements with the We reperformed the calculation to test the mathematical accuracy.
GROUP lessors, Emirates is contractually committed to either return the To understand the methodology used by management, the following key assumptions were
aircraft and/or engines in a certain condition or to compensate discussed with senior engineering personnel:
FINANCIAL the lessor based on the actual condition of the aircraft and/or
INFORMATION engines at the date of return. Accordingly, a provision of AED 3,187 ● the past and expected future utilisation and maintenance patterns of the aircraft;
million (2018: AED 3,336 million) for the cost associated with these ● the expected cost of each maintenance event at the time it is expected to occur; and
EMIRATES return conditions is recorded during the lease term and is included ● the discount rate applied to calculate the present value of the future liability.
FINANCIAL
COMMENTARY within Provisions (refer to notes 2, 3, 23 and 25 of the consolidated
financial statements). We compared historical utilisation of the aircraft to flying records and assessed if the future
| DNATA
DNATA utilisation assumptions were considered reasonable in light of past experience. Assumed
| FINANCIAL
FINANCIAL The provision is calculated using a model which incorporates a maintenance costs were assessed against historical actual costs incurred and existing long
| COMMENTARY
COMMENTARY
number of assumptions, requiring significant judgement, including term maintenance agreements. Future maintenance patterns were assessed against internal
| EMIRATES
EMIRATES the: maintenance plans. We verified that the discount rate applied by management to the future
| CONSOLIDATED
CONSOLIDATED liability was within an acceptable range with reference to the time value of money applicable to
| FINANCIAL
FINANCIAL ● past and expected future utilisation and maintenance patterns of
| Emirates and the risks specific to the liability.
STATEMENTS
STATEMENTS the aircraft and engines;
● expected cost of the maintenance at the time it is estimated to Along with performing a sensitivity analysis on reasonably possible changes in assumptions,
DNATA
CONSOLIDATED occur; and we also compared provisions held for aircraft and engines returned during the year to the
FINANCIAL compensation paid out to the lessors or actual costs incurred to establish if past provisions were
STATEMENTS ● discount rate applied to calculate the present value of the future reasonable.
liability.
ADDITIONAL We assessed whether the related disclosures in notes 2, 3, 23 and 25 to the consolidated financial
INFORMATION We focused on this area because of the significant level of
statements are consistent with the requirements of IFRS.
judgement exercised by management in determining the underlying
assumptions within the model.

Other information
Management is responsible for the other information.
The other information comprises the information
included in the Annual Report (but does not include
the consolidated financial statements and our auditor’s
report thereon).
Our opinion on the consolidated financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other
information identified above and, in doing so, consider
whether the other information is materially inconsistent
with the consolidated financial statements or our
104
knowledge obtained in the audit, or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of management and
those charged with governance for the
consolidated financial statements
Management is responsible for the preparation and fair
presentation of the consolidated financial statements
in accordance with IFRS, 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.
In preparing the consolidated financial statements,
management is responsible for assessing Emirates’ ability
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate Emirates or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeing Emirates’ financial reporting process.
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of Emirates (continued)
2018-19

Auditor’s responsibilities for the audit of the consolidated

financial statements
OVERVIEW
Our objectives are to obtain reasonable assurance about whether the consolidated We communicate with those charged with governance regarding, among other matters,
EMIRATES financial statements as a whole are free from material misstatement, whether due to the planned scope and timing of the audit and significant audit findings, including any
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable significant deficiencies in internal control that we identify during our audit.
DNATA assurance is a high level of assurance, but is not a guarantee that an audit conducted
We also provide those charged with governance with a statement that we have complied
in accordance with ISAs will always detect a material misstatement when it exists.
with relevant ethical requirements regarding independence, and to communicate with
GROUP Misstatements can arise from fraud or error and are considered material if, individually
them all relationships and other matters that may reasonably be thought to bear on our
or in the aggregate, they could reasonably be expected to influence the economic
independence, and where applicable, related safeguards.
FINANCIAL decisions of users taken on the basis of these consolidated financial statements.
INFORMATION From the matters communicated with those charged with governance, we determine
As part of an audit in accordance with ISAs, we exercise professional judgement and
those matters that were of most significance in the audit of the consolidated financial
EMIRATES maintain professional scepticism throughout the audit. We also:
FINANCIAL
statements of the current year and are therefore the Key audit matters. We describe
COMMENTARY ● Identify and assess the risks of material misstatement of the consolidated financial these matters in our auditor’s report unless law or regulation precludes public disclosure
statements, whether due to fraud or error, design and perform audit procedures about the matter or when, in extremely rare circumstances, we determine that a matter
| DNATA
DNATA
| FINANCIAL
FINANCIAL responsive to those risks, and obtain audit evidence that is sufficient and appropriate should not be communicated in our report because the adverse consequences of
| COMMENTARY
COMMENTARY to provide a basis for our opinion. The risk of not detecting a material misstatement doing so would reasonably be expected to outweigh the public interest benefits of
resulting from fraud is higher than for one resulting from error, as fraud may involve such communication.
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED collusion, forgery, intentional omissions, misrepresentations, or the override of
| PricewaterhouseCoopers
FINANCIAL
FINANCIAL internal control.
| STATEMENTS
STATEMENTS 5 May 2019
● Obtain an understanding of internal control relevant to the audit in order to design
DNATA
CONSOLIDATED
audit procedures that are appropriate in the circumstances, but not for the purpose
FINANCIAL of expressing an opinion on the effectiveness of Emirates’ internal control.
STATEMENTS
● Evaluate the appropriateness of accounting policies used and the reasonableness of
ADDITIONAL Douglas O’Mahony
accounting estimates and related disclosures made by management.
INFORMATION
Registered Auditor Number 834
● Conclude on the appropriateness of management’s use of the going concern basis Dubai, United Arab Emirates
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on Emirates’ ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions
may cause Emirates to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that
achieves fair presentation.

● Obtain sufficient appropriate audit evidence regarding the financial information

of the entities or business activities within Emirates to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision
and performance of the Emirates audit. We remain solely responsible for our
audit opinion.

105
 Consolidated Income Statement
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
for the year ended 31 March 2019
Emirates
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2019
Emirates Note 2019 2018
OVERVIEW CONSOLIDATED INCOME STATEMENT AED m AED m
FOR THE YEAR ENDED 31 MARCH 2019
EMIRATES Revenue 5 96,040 91,225
Note 2019 2018
Other operating income 6 1,867 1,097
DNATA AED m AED m
Operating costs 7 (95,260) (88,236)
Revenue profit
Operating 5 96,040
2,647 91,225
4,086
GROUP
Other operating
Finance income income 6
8 1,867
497 1,097
375
FINANCIAL Operating
Finance costs
costs 7
8 (95,260)
(2,173) (88,236)
(1,593)
INFORMATION Operating profit
Share of results of investments accounted for using the equity method 13 2,647
116 4,086
155
EMIRATES Finance income
Profit before income tax 8 497
1,087 375
3,023
FINANCIAL
COMMENTARY
Finance costs
Income tax expense 8
9 (2,173)
(57) (1,593)
(44)
Share
Profit of
forresults of investments accounted for using the equity method
the year 13 116
1,030 155
2,979
| DNATA
DNATA
| FINANCIAL
FINANCIAL Profit before income
Profit attributable tax
to non-controlling interests 1,087
159 3,023
183
| COMMENTARY
COMMENTARY
Income tax expense to Emirates' Owner
Profit attributable 9 (57)
871 (44)
2,796
| EMIRATES
EMIRATES Profit for the year 1,030 2,979
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL Profit attributable STATEMENT
CONSOLIDATED to non-controlling interests
OF COMPREHENSIVE INCOME 159 183
| STATEMENTS
STATEMENTS

DNATA Consolidated Statement of Comprehensive Income

ProfitTHE
FOR attributable
YEAR ENDEDto Emirates'
31 MARCH Owner
2019 871 2,796

CONSOLIDATED
FINANCIAL
STATEMENTS for
Profit
Items
FOR THE
the
thatYEAR
year
for the year
CONSOLIDATED
will not
ended
be reclassified
ENDED 31 MARCHto
31 March 2019
STATEMENT OF COMPREHENSIVE INCOME
the consolidated income statement
2019
1,030 2,979

ADDITIONAL Remeasurement of retirement benefit obligations 24 (60) (6)

INFORMATION
Profit for the
Items that areyear
or may be reclassified subsequently to the consolidated income statement 1,030 2,979
Items that will not be reclassified
Currency translation differencesto the consolidated income statement 18 (4) 1
Remeasurement
Cash flow hedgesof retirement benefit obligations 24
18 (60)
(71) (6)
155
Items
Other that are or may income
comprehensive be reclassified
for the subsequently
year to the consolidated income statement (135) 150
Currency
Total translation
comprehensive differences
income for the year 18 (4)
895 1
3,129
Cash flow hedges
Total comprehensive income attributable to non-controlling interests 18 (71)
159 155
183
Othercomprehensive
Total comprehensiveincome
incomeattributable
for the year to Emirates' Owner (135)
736 150
2,946
Total comprehensive income for the year 895 3,129
Totalaccompanying
The comprehensive income
notes attributable
are an to non-controlling
integral part interests
of these consolidated financial statements. 159 183
Total comprehensive income attributable to Emirates' Owner 736 2,946

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

The accompanying notes are an integral part of these consolidated financial statements.
106
 Consolidated Statement of Financial Position
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
rates
as at 31 March 2019
Emirates
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
NSOLIDATED STATEMENT
ASOF
ATFINANCIAL
31 MARCH POSITION
2019 Note 2019 20
AT 31 MARCH 2019 Note 2019 2018 Note 2019 2018 AED m AED
OVERVIEW Note 2019 2018 AED m AED m AED m AED m
EQUITY AND LIABILITIES
AED m AED m
EMIRATES ASSETS EQUITY AND LIABILITIES Capital and reserves
ETS Non-current assets Capital and reserves Capital 17 801 8
-current
DNATAassets
Property, plant and equipment 11 89,431 85,951 Capital Other reserves 17 801 801
18 (60)
erty, plant and equipment 11 89,431 85,951 Other reserves Retained earnings 18 (60) 15 36,408 35,6
Intangible assets 12 1,574 1,496
GROUP Retained earnings Attributable to Emirates' Owner 36,408 35,638 37,149 36,4
ngible assets Investments accounted for12 1,574
using the equity 1,496
Attributable to Emirates' Owner
Non-controlling interests 37,149 36,454 594 5
stments accounted
FINANCIAL for using the
method equity 13 683 662
Non-controlling interests Total equity 594 592 37,743 37,0
hod INFORMATION
Advance lease rentals 13 683 662
14 4,619 5,065 Total equity 37,743 37,046
ance lease rentals Trade and other receivables14 4,619 5,065
16 139 172
EMIRATES Non-current liabilities
FINANCIAL
e andCOMMENTARY
other receivables Derivative financial instruments
16 139 172
34 24 60 Non-current liabilities Trade and other payables 29 155 1
vative financial instruments Trade and other payables 29
Borrowings and lease liabilities 155 123
19 45,433 42,0
| DNATA
DNATA Deferred income tax assets34 24 60
28 13 11
Borrowings and lease liabilities
Deferred credits 19 45,433 42,071
27 2,437 2,6
rred| FINANCIAL
income tax assets
FINANCIAL 28 13 11 96,483 93,417
| COMMENTARY
COMMENTARY Deferred credits 27
Derivative financial instruments 2,437 2,621
34 81
Current assets 96,483 93,417
Derivative financial instruments
Provisions 34 81 26
23 4,081 4,0
| EMIRATES
EMIRATES
ent |assets
CONSOLIDATED
CONSOLIDATED Inventories 15 2,525 2,387 Provisions 23
Deferred income tax liabilities 4,081 4,067
28 3
| FINANCIAL
ntories
FINANCIAL
| STATEMENTS
STATEMENTS Advance lease rentals 15 2,525 2,387
14 602 586 Deferred income tax liabilities 28 3 4 52,190 48,9
ance lease rentals 14 602 586 Current liabilities 52,190 48,912
Trade and other receivables 16 10,740 10,768
DNATA Current liabilities Trade and other payables 29 26,795 29,3
e andCONSOLIDATED
other receivables Derivative financial instruments
16 10,740 10,768
34 11 9
FINANCIAL Trade and other payables Income tax liabilities 29 26,795 29,303 35
vativeSTATEMENTS
financial instruments
Short term bank deposits 34 11 9
32 11,974 14,745 Income tax liabilities Borrowings and lease liabilities 35 18
19 7,606 9,0
t term bank deposits
ADDITIONAL Cash and cash equivalents 32 11,974 14,745
32 5,063 5,675 Borrowings and lease liabilities
Deferred revenue 19 7,606 9,030
26 2,009 2,2
INFORMATION
h and cash equivalents 32 5,063 5,675 Deferred revenue Deferred credits 26 2,009 2,243
27 322 3
30,915 34,170
Deferred credits 27
Derivative financial instruments 322 313
34 20
Total assets 30,915 34,170 127,398 127,587 Derivative financial instruments
Provisions 34 20 35
23 678 6
al assets 127,398 127,587 Provisions 23 678 687 37,465 41,6
Total liabilities 37,465 41,629 89,655 90,5
Total liabilities Total equity and liabilities 89,655 90,541 127,398 127,5
Total equity and liabilities 127,398 127,587
The consolidated financial statements were approved on 5 May 2019 and signed by
The consolidated financial statements were approved on 5 May 2019 and signed by:
The consolidated financial statements were approved on 5 May 2019 and signed by:
The accompanying notes are an integral part of these consolidated financial statements
accompanying notes are an integral part of these consolidated financial statements Sheikh Ahmed bin Saeed Al-Maktoum Timothy Clark
Sheikh Ahmed bin Saeed Al-Maktoum
Chairman and Chief Executive Timothy Clark President
Chairman and Chief Executive President
Sheikh Ahmed bin Saeed Al-Maktoum Timothy Clark
Chairman and Chief Executive President

The accompanying notes are an integral part of these consolidated financial statements.
107
 Consolidated Statement of Changes in Equity
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 Emirates
for the year
CONSOLIDATED ended
STATEMENT 31 March
OF CHANGES IN EQUITY2019
FOR THE YEAR ENDED 31 MARCH 2019
Attributable to Emirates' Owner
OVERVIEW
Non-
EMIRATES Other Retained controlling Total
Capital reserves earnings Total interests equity
DNATA
AED m AED m AED m AED m AED m AED m
GROUP 1 April 2017 801 (141) 33,848 34,508 586 35,094
Profit for the year - - 2,796 2,796 183 2,979
FINANCIAL
INFORMATION Other comprehensive income - 156 (6) 150 - 150
EMIRATES Total comprehensive income - 156 2,790 2,946 183 3,129
FINANCIAL
COMMENTARY Non-controlling interest on acquisition of a subsidiary - - - - (4) (4)
| DNATA
DNATA Dividends - - (1,000) (1,000) (173) (1,173)
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY Transactions with Owners - - (1,000) (1,000) (177) (1,177)
| EMIRATES
EMIRATES 31 March 2018 801 15 35,638 36,454 592 37,046
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL Impact on adoption of IFRS 15 (Note 2) - - (41) (41) - (41)
| STATEMENTS
STATEMENTS
Adjusted 1 April 2018 801 15 35,597 36,413 592 37,005
DNATA
CONSOLIDATED Profit for the year - - 871 871 159 1,030
FINANCIAL
STATEMENTS Other comprehensive income - (75) (60) (135) - (135)
ADDITIONAL Total comprehensive income - (75) 811 736 159 895
INFORMATION
Dividends - - - - (157) (157)
Transactions with Owners - - - - (157) (157)
31 March 2019 801 (60) 36,408 37,149 594 37,743

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

The accompanying notes are an integral part of these consolidated financial statements.
108
 Consolidated Statement of Cash Flows
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
for the year ended 31 March 2019
Emirates
CONSOLIDATED STATEMENT OF CASH FLOWS
Note 2019 2
AED m AE
FOR THE YEAR ENDED 31 MARCH 2019
rates Investing activities
Note 2019 2018 Note 2019 2018
NSOLIDATED
OVERVIEW STATEMENT OF CASH FLOWS Additions to property, plant and equipment
AED m AED m AED m AED m33 (4,545) (3,2
THE YEAR ENDED 31 MARCH 2019 Additions to intangible assets 12 (259) (2
EMIRATES Operating activities Investing activities
Note 2019 2018 Proceeds from sale of property, plant and
Profit before income tax AED m AED m 1,087 3,023 Additions to property, plant and equipment 33 (4,545) (3,279)
DNATA equipment 42
Adjustments for: Additions to intangible assets 12 (259) (209)
rating activities Acquisition of subsidiaries, net of cash acquired -
GROUP Depreciation and amortisation 7 9,680 9,193 Proceeds from sale of property, plant and
t before income tax 1,087 3,023 Investments in associates and joint ventures 13 (74)
Finance costs - net 8 1,676 1,218 equipment 42 98
stments for: Proceeds from sale of investments accounted for
FINANCIAL Net loss on sale of property, plant and Acquisition of subsidiaries, netusing
of cash
theacquired
equity method - (6) 84
epreciation and amortisation
INFORMATION 7 9,680 9,193
equipment 95 82 Investments in associates andMovement
joint ventures 13 deposits (74)
in short term bank - over 3 (5)
nanceEMIRATES
costs - net 8 accounted
Gain on sale of investments 1,676
for using 1,218 Proceeds from sale of investments accounted for
months original maturity 2,771 (8,0
et lossFINANCIAL
on sale of property, plant and method
the equity (33) - using the equity method 84 -
COMMENTARY Finance income 495
uipment Share of results of investments accounted
95 for 82 Movement in short term bankDividends
deposits -from
overinvestments
3 accounted for using
ain on sale of investments accounted
| DNATA
DNATA
using the for using
equity method 13 (116) (155) months original maturity 2,771 (8,039)13
| FINANCIAL
FINANCIAL the equity method 126
e equity method
| COMMENTARY
COMMENTARY Net provision for impairment of trade(33) -
Finance income
are of results of investments accounted for Net cash used in investing activities 495 288 (1,360) (10,9
| EMIRATES
EMIRATES receivables 7 26 20 Dividends from investments accounted for using
ing the equity method
| CONSOLIDATED
CONSOLIDATED 13 (116) (155)
| FINANCIAL Provision for retirement benefit obligations 7 742 732 the equity method 13 126 175
FINANCIAL
et provision for impairment of trade
| STATEMENTS Financing activities
STATEMENTS
Net movement on derivative financial instruments (3) (3) Net cash used in investing activities (1,360) (10,977)
ceivables 7 26 20 Proceeds from bonds and term loans 20,21 8,268 5,
DNATA Payments of retirement benefit obligations (648) (617)
ovision for retirement benefit obligations
CONSOLIDATED 7 742 732 Repayment of bonds and term loans 20,21 (5,512) (3,9
FINANCIAL Income tax paid (70) (66) Financing activities
et movement
STATEMENTSon derivative financial instruments (3) (3) Aircraft finance lease costs (1,366) (1,1
Change in inventories (138) (145) Proceeds from bonds and term loans 20,21 8,268 5,584
mentsADDITIONAL
of retirement benefit obligations (648) (617) Other finance costs (550) (2
Change in advance lease rentals, trade and other Repayment of bonds and term loans 20,21 (5,512) (3,981)
INFORMATION
me tax paid (70) (66) Repayment of lease liabilities 22 (9,490) (6,5
receivables 530 (1,892) Aircraft finance lease costs (1,366) (1,157)
nge in inventories (138) (145) Dividend paid to Emirates' Owner (1,000)
Change in provisions, trade and other payables, Other finance costs (550) (207)
nge in advance lease rentals, trade credits
deferred and other
and deferred revenue (2,300) 2,744 Dividend paid to non-controlling interests (157) (1
Repayment of lease liabilities 22 (9,490) (6,508)
vables 530 (1,892) Net cash used in financing activities (9,807) (6,4
Net cash generated from operating activities 10,528 14,134 Dividend paid to Emirates' Owner (1,000) -
nge in provisions, trade and other payables,
rred credits and deferred revenue (2,300) 2,744 Dividend paid to non-controlling interests (157) (173)
Net change in cash and cash equivalents (639) (3,2
cash generated from operating activities 10,528 14,134 Net cash used in financing activities (9,807) (6,442)
Cash and cash equivalents at beginning of the year 5,675 8,
Effect of exchange rate changes (2)
The accompanying notes are an integral part of these consolidated financial statements Net change in cash and cash equivalents (639) (3,285)
Cash and cash equivalents at end of the year 32 5,034 5,6
Cash and cash equivalents at beginning of the year 5,675 8,958
Effect of exchange rate changes (2) 2
accompanying notes are an integral part of these consolidated financial statements
Cash and cash equivalents at end of the year 32 5,034 5,675

The accompanying notes are an integral part of these consolidated financial statements.
109
 Notes to the Consolidated Financial Statements
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
for the year ended 31 March 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
New standards, amendments to published standards and interpretations that are
relevant to Emirates

Effective and adopted in the current year standards and interpretations that are
NOTES
1. TOinformation
General THE CONSOLIDATED FINANCIAL STATEMENTS New standards, amendments to published
OVERVIEW FOR THE YEAR ENDED 31 MARCH 2019 relevant to Emirates
Emirates comprises Emirates and its subsidiaries. Emirates was incorporated, with limited At the date of authorisation of these consolidated financial statements, certain new
standards or adopted
Effective and amendments tocurrent
in the the existing
year standards were effective for the current
EMIRATES liability,
1. General by information
an Emiri Decree issued by H. H. Sheikh Maktoum bin Rashid Al-Maktoum on
financial year and have been adopted by Emirates. These are as follows:
26 June 1985 and is wholly owned by the Investment Corporation of Dubai (“the parent
DNATA company”), a Government
Emirates comprises Emiratesofand
Dubai
its entity. Emirates
subsidiaries. commenced
Emirates commercialwith
was incorporated, operations
limited At the date of authorisation of these consolidated financial statements, certain new
IFRS 9, Financial
standards Instruments
or amendments to the existing standards were effective for the current
on 25 October 1985 and is designated as the International Airline of the UAE.
liability, by an Emiri Decree issued by H. H. Sheikh Maktoum bin Rashid Al-Maktoum on
financial year and have been adopted by Emirates. These are as follows:
GROUP 26 June 1985 and is wholly owned by the Investment Corporation of Dubai (“the parent IFRS 9 replaced IAS 39. The new standard addresses the classification, measurement and
Emirates
company”),is incorporated
a Governmentandof domiciled in Dubai,
Dubai entity. UAE.commenced
Emirates The addresscommercial
of its registered office
operations derecognition
IFRS of Instruments
9, Financial financial assets and financial liabilities, introduces a new impairment
is Emirates
on Group
25 October Headquarters,
1985 PO Box
and is designated as686, Dubai, UAE. Airline of the UAE.
the International
FINANCIAL model for financial assets and also new rules for hedge accounting.
INFORMATION
The mainisactivities
Emirates of Emirates
incorporated comprise:in Dubai, UAE. The address of its registered office
and domiciled IFRS 9 replaced IAS 39. The new standard addresses the classification, measurement and
Emirates adopted
derecognition IFRS 9 from
of financial 1 April
assets 2018. Emirates’
and financial financial
liabilities, assetsa comprising
introduces trade
new impairment
EMIRATES
is Emirates Group Headquarters, PO Box 686, Dubai, UAE. and other receivables (excluding prepayments), short term bank deposits and cash and
FINANCIAL
 commercial air transportation which includes passenger and cargo services model for financial assets and also new rules for hedge accounting.
COMMENTARY
The wholesale and retail of consumer goods cash equivalents were previously classified as ‘Loans and receivables’ and were measured
main activities of Emirates comprise: at amortised cost under
| DNATA
DNATA  catering operations Emirates adopted IFRS 9 IASfrom39.1 Emirates
April 2018.hasEmirates’
assessedfinancial
that these financial
assets assets trade
comprising meet
| FINANCIAL the conditions for classification and measurement at amortised
and other receivables (excluding prepayments), short term bank deposits and cash andcost under IFRS 9.
FINANCIAL
| COMMENTARY  hotel operations
commercial air transportation which includes passenger and cargo services
COMMENTARY
 food and beverage Accordingly
cash therewere
equivalents is no impact on
previously the measurement
classified as ‘Loans and of receivables’
Emirates’ financial
and wereassets, while
measured
wholesale and retailsales
of consumer goods theamortised
classification
| at costofunder
these IAS
assets
39.changes
Emiratesfrom
has ‘Loans
assessedandthatreceivables’ to ‘Financial
these financial assetsassets
meet
|
EMIRATES
EMIRATES
 catering operations at amortised cost’.
CONSOLIDATED
2. the conditions for classification and measurement at amortised cost under IFRS 9.
 Summary of significant accounting policies
CONSOLIDATED
| FINANCIAL
FINANCIAL hotel operations
| STATEMENTS
STATEMENTS  food and beverage sales Accordingly there is no impact on the measurement of Emirates’ financial assets, while
There
the is no impact
classification on Emirates’
of these financialfrom
assets changes liabilities
‘Loansasand
thereceivables’
new requirements only assets
to ‘Financial affect
A summary of the significant accounting policies, which have been applied consistently
DNATA the accounting
at amortised for financial liabilities that are designated at fair value through profit or
cost’.
in the
2. preparation
Summary of these consolidated
of significant financial statements are set out below.
accounting policies
CONSOLIDATED
loss and Emirates does not have such liabilities of significant value.
FINANCIAL
STATEMENTS
Basis of preparation There is no impact on Emirates’ financial liabilities as the new requirements only affect
A summary of the significant accounting policies, which have been applied consistently The new impairment model under that
IFRS are9 designated
requires theat recognition of impairment
the accounting for financial liabilities fair value through profit or
in the preparation of these consolidated financial statements are set out below. provisions based on expected
not havecredit
such losses (ECL) rather thanvalue.
only incurred credit losses
ADDITIONAL
INFORMATION The consolidated financial statements have been prepared in accordance with loss and Emirates does liabilities of significant
as is the case under IAS 39. It applies to trade receivables and other financial assets. For
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee
Basis of preparation
(IFRS IC) pronouncements. The consolidated financial statements are prepared under the financial
The new assets comprising
impairment model ofundertradeIFRS receivables,
9 requiresEmirates adopted of
the recognition theimpairment
simplified
approach
provisions allowed
based onunder IFRScredit
expected 9, under
losses which lifetime
(ECL) rather expected
than loss allowance
only incurred credit lossesis
historical cost convention,
The consolidated financialexcept for thosehave
statements financial
beenassets and financial
prepared liabilities with
in accordance that
estimated to calculate provision. For all other financial assets, Emirates follows
as is the case under IAS 39. It applies to trade receivables and other financial assets. For the 12-
are measured at fair value as stated in the accounting policies.
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee month expected
financial assets credit loss model
comprising to calculate
of trade the impairment
receivables, Emirates provision.
adopted Thisthe change did
simplified
(IFRS IC) pronouncements. The consolidated financial statements are prepared under the not have any significant impact
All amounts areconvention,
presented in millions approach allowed under IFRSon9,the loss allowance
under which lifetimefor these financialloss
expected assets compared
allowance is
historical cost except forofthose
UAE Dirham
financial(“AED
assetsm”).
and financial liabilities that to the previous methodology.
estimated to calculate provision. For all other financial assets, Emirates follows the 12-
are measured at fair value as stated in the accounting policies.
month expected credit loss model to calculate the impairment provision. This change did
IFRS 9 hasany
not have substantially
significant reformed
impact onthe theexisting hedge accounting
loss allowance rules. It assets
for these financial provides a more
compared
All amounts are presented in millions of UAE Dirham (“AED m”). principles-based approach that aligns hedge accounting closely with risk management
to the previous methodology.
policies. Interest rate swaps and currency forwards in place as at 1 April 2018 qualified as
cash
IFRS 9flow
has hedges. Emirates
substantially risk management
reformed strategies
the existing hedge and hedge
accounting rules.documentation are
It provides a more
aligned with the requirements
principles-based approach thatofaligns IFRS 9hedge
and these relationships
accounting closelyare therefore
with treated as
risk management
continuing hedges.
policies. Interest Accordingly
rate swaps there forwards
and currency is no material
in place impact on Emirates’
as at 1 April hedge
2018 qualified as
accounting
cash on adoption
flow hedges. of IFRS
Emirates risk 9.management strategies and hedge documentation are
aligned with the requirements of IFRS 9 and these relationships are therefore treated as
continuing hedges. Accordingly there is no material impact on Emirates’ hedge
accounting on adoption of IFRS 9.

110
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2018-19

2. Summary of significant accounting policies (continued) The standard will have a significant impact on the Emirates consolidated financial
OVERVIEW statements considering the number of aircraft and other operating leases in its portfolio
IFRS 15, Revenue from Contracts with Customers with future minimum lease payments under operating leases at 31 March 2019
EMIRATES amounting to AED 75 billion (Note 22).
IFRS 15 replaced IAS 18 which covered contracts for sale of goods and rendering of
DNATA services and IAS 11 which covered construction contracts. The consolidated statement of financial position will be impacted by the recognition of a
right-of-use asset and a lease liability related to these assets. In respect of the
GROUP
The new standard is based on the principle that revenue is recognised when control of a consolidated income statement, there will be an impact as the total expense is typically
good or service transfers to a customer – so the notion of control replaces the existing higher in the earlier years of a lease and lower in later years. Additionally, operating lease
notion of risks and rewards. The standard provides a new five-step model that must be charges will be replaced with interest and depreciation expense. With Emirates’ young
FINANCIAL
INFORMATION applied to all contracts with customers. fleet, the application of IFRS 16 is expected to result in a higher charge in the
consolidated income statement for the year ending 31 March 2020 compared to the
EMIRATES Emirates applied the modified retrospective method on transition to the new standard expense based on IAS 17. Further, operating cash flows will be higher as cash payments
FINANCIAL
from 1 April 2018. Revenue from certain ancillary services such as administration fees for the lease liability will be classified within financing activities. Under IFRS 16,
COMMENTARY
which were previously recognised at the time of collection are now recognised when the provisions for aircraft return conditions will form part of the right-of-use asset from
| DNATA
DNATA related services are provided. The cumulative effect of this change was recognised on inception of the lease and will be depreciated over the lease term. The associated
| FINANCIAL 1 April 2018 resulting in an increase in passenger and cargo sales in advance (disclosed
FINANCIAL
| COMMENTARY provision will be recognised at present value with the associated finance cost being
COMMENTARY
within trade and other payables) of AED 41m with a corresponding impact in retained charged to the consolidated income statement as a finance expense over the lease term.
| EMIRATES
EMIRATES earnings. There was no other significant change to the method or timing of revenue
| CONSOLIDATED
CONSOLIDATED
recognition compared to the previous year. Following the adoption of IFRS 15, Emirates Emirates will apply the modified retrospective method on transition to the new standard
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS classifies the entire deferred revenue in respect of its frequent flyer programme from 1 April 2019 and comparatives will not be restated. Right-of-use assets will be
(‘Skywards’) as a current liability as Emirates does not control the timing of the miles measured at the lease commencement date using Emirates’ incremental borrowing rates
DNATA
CONSOLIDATED
being utilised by the customer. The deferred revenue balance was previously classified as as if the new rules had always been applied, i.e. the cumulative depreciation impact from
FINANCIAL current and non-current liabilities based on expected redemption patterns. Prior year the lease commencement date to the date of transition will be reflected in the initial
STATEMENTS comparative balances have been re-presented to ensure amounts are comparable. measurement of right-of-use asset. Lease liabilities will be determined based on
ADDITIONAL
Emirates’ incremental borrowing rates and rates of exchange at the date of transition
INFORMATION Not yet effective and have not been early adopted (1 April 2019) and will incorporate extension options only if considered likely based on
fleet plans.
At the date of authorisation of these consolidated financial statements, certain new
accounting standards have been published that are not mandatory for the financial year Upon adoption of IFRS 16 on 1 April 2019, Emirates’ assets and liabilities are estimated
ended 31 March 2019, and have not been early adopted. The following new standard will to increase in the range of AED 50 – 54 billion and AED 58 – 62 billion respectively,
have an impact on Emirates and management has performed an initial estimate of its depending on the outcome of certain contracts which are in negotiation stages.
impact.
There are no other new standards, amendments or interpretations, that are either
IFRS 16, Leases (effective for Emirates from 1 April 2019) effective or not yet effective, and would be expected to have a material impact on
Emirates.
IFRS 16 will result in almost all leases being recognised on the balance sheet by lessees,
as the distinction between operating and finance lease is removed. Under the new Basis of consolidation
standard, an asset (the right to use the leased item) and a financial liability to pay rentals
are recognised. Leases are capitalised by recognising the present value of the lease Subsidiaries are those entities (including structured entities) over which Emirates has
payments and showing them either as lease assets (right-of-use assets) or together with control. Control is exercised when Emirates is exposed to, or has rights to, variable
property, plant and equipment. An optional exemption exists (which Emirates will avail) returns from its involvement with the entity and has the ability to affect those returns
for short-term and low-value leases. through its power over that entity. Subsidiaries are fully 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 its subsidiaries are eliminated.

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2. Summary of significant accounting policies (continued) include goodwill (net of accumulated impairment loss, if any) identified on acquisition,
OVERVIEW after initially being recognised at cost.
Basis of consolidation (continued)
EMIRATES When Emirates’ share of losses in an equity-accounted investment equals or exceed its
The acquisition method of accounting is used to account for business combinations by interest in the entity, including any other unsecured long term receivables, Emirates does
DNATA Emirates. The consideration transferred for the acquisition of a subsidiary comprises the not recognise further losses, unless it has incurred obligations or made payments on
fair value of the assets transferred, liabilities acquired, fair value of any contingent behalf of the other entity.
consideration arrangements and the fair value of any pre-existing equity interest in the
GROUP
subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets, All material unrealised gains and losses arising on transactions between Emirates and its
including intangible assets acquired, liabilities and contingent liabilities, if any, incurred associates and joint ventures are eliminated to the extent of Emirates’ interest.
FINANCIAL
INFORMATION
or assumed in a business combination, are measured initially at their fair values at the
acquisition date. Accounting policies of subsidiaries, associates and joint ventures have been changed
EMIRATES where necessary to ensure consistency with Emirates’ accounting policies.
FINANCIAL Any non-controlling interest in the subsidiary is recognised on an acquisition-by-
COMMENTARY
acquisition basis, either at fair value or at the non-controlling interest’s proportionate When Emirates ceases to have control, any retained interest in the entity or business is
| DNATA
DNATA share of recognised amounts of subsidiaries’ identifiable net assets. remeasured to its fair value at the date when control is lost, with the change in the
| FINANCIAL
FINANCIAL carrying amount recognised in the consolidated income statement. The fair value
| COMMENTARY
COMMENTARY
Contingent consideration is classified either as equity or a financial liability. Amounts becomes the initial carrying amount for the purposes of subsequent accounting for the
| EMIRATES
EMIRATES classified as a financial liability are subsequently remeasured to fair value with changes in retained interest as an associate, joint venture or financial asset. In addition, any amounts
| CONSOLIDATED
CONSOLIDATED fair value recognised in the consolidated income statement. previously recognised in other comprehensive income in respect of that entity or
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS business are accounted for as if the related assets or liabilities have been directly
If the business combination is achieved in stages, the acquisition date carrying value of disposed off. This may mean that amounts previously recognised in other
DNATA Emirates’ previously held equity interest in the subsidiary is remeasured to fair value at comprehensive income are reclassified to the consolidated income statement. If the
CONSOLIDATED
FINANCIAL the acquisition date. Any gains or losses arising from such remeasurement are ownership in a joint venture or an associate is reduced but joint control or significant
STATEMENTS recognised in the consolidated income statement. influence is retained, only a proportionate share of the amounts previously recognised in
other comprehensive income are reclassified to the consolidated income statement
ADDITIONAL
INFORMATION Emirates treats transactions with non-controlling interests that do not result in loss of where appropriate.
control as transactions with the owners. A change in ownership interest results in an
adjustment between the carrying amounts of the controlling and non-controlling Revenue
interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid is Passenger (including excess baggage) and cargo sales are recognised as revenue when
recorded in equity. each performance obligation for the transportation service is fulfilled and is presented
net of discounts. Revenue is allocated to each performance obligation based on the
Associates are those entities in which Emirates has significant influence but not control relative stand-alone selling price related to each performance obligation. Revenue
or joint control, generally accompanying a shareholding between 20% and 50% of the documents (e.g. tickets or airway bills) sold but unused are held in the consolidated
voting rights. Significant influence is the power to participate in the financial and statement of financial position under current liabilities as passenger and cargo sales in
operating policy decisions of the investee, but is not control or joint control over those advance. Passenger ticket related breakage is estimated based on historical trends and
policies. Investments in associates are accounted for by applying the equity method and recognised in the consolidated income statement proportionally with each transfer of
include goodwill (net of accumulated impairment loss, if any) identified on acquisition, service to the customer.
after initially being recorded at cost.
Where Emirates acts as an agent between the service provider and the end customer,
Joint ventures are contractual arrangements which establish joint control and where the net commission is recognised as revenue on satisfaction of the performance
Emirates has rights to the net assets of the arrangement. Joint control is the contractually obligation (which is typically the date of sale).
agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
Investments in joint ventures are accounted for by applying the equity method and

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2. Summary of significant accounting policies (continued) Finance income and costs

OVERVIEW
Revenue (continued) Interest income and costs are recognised on a time proportion basis using the effective
EMIRATES interest method.
Revenues from the sale of consumer goods, food and beverages and catering operations
DNATA is recognised when the control of goods is transferred to the customer and are stated Foreign currency translation
net of discounts and returns.
GROUP
Emirates’ consolidated financial statements are presented in UAE Dirham (“AED”), which
All other revenues, including revenue from hotel operations, are recognised net of is also the company’s functional currency. Subsidiaries, associates and joint ventures
discounts and taxes, when the respective performance obligations are satisfied. determine their own functional currency and items included in the financial statements
FINANCIAL
INFORMATION of these companies are measured using that functional currency.
Frequent flyer programme (‘Skywards’)
EMIRATES Foreign currency transactions are translated into the functional currency at the exchange
FINANCIAL
Emirates operates a frequent flyer programme that provides a variety of awards to rates prevailing at the transaction dates. Monetary assets and liabilities denominated in
COMMENTARY
programme members based on a mileage credit for flights on Emirates and other foreign currencies are translated into the functional currency at the exchange rates
| DNATA
DNATA airlines that participate in the programme. Members can also accrue miles by utilising prevailing at the end of the reporting period. The resultant foreign exchange gains and
| FINANCIAL
FINANCIAL
| COMMENTARY the services of non-airline programme participants. losses, other than those on qualifying cash flow hedges deferred in other comprehensive
COMMENTARY
income, are recognised in the consolidated income statement.
| EMIRATES
EMIRATES Emirates accounts for Skywards miles (predominantly accrued through sale of flight
| CONSOLIDATED
CONSOLIDATED
Where functional currencies of subsidiaries are different from AED, income,
| FINANCIAL
FINANCIAL tickets or purchase of miles by programme partners) as a separately identifiable
| STATEMENTS
STATEMENTS component of the sales transaction in which they are granted. The consideration in comprehensive income and cash flow statements of subsidiaries are translated into AED
respect of the initial sale allocated to Skywards miles is based on their relative stand- at average exchange rates for the year that approximate the cumulative effect of rates
DNATA
CONSOLIDATED alone selling price, adjusted for expected expiry and the extent to which the demand for prevailing on the transaction dates and their assets and liabilities are translated at the
FINANCIAL an award cannot be met, and is recorded under current liabilities as ‘deferred revenue’. exchange rates ruling at the end of reporting period. The resulting exchange differences
STATEMENTS
The stand-alone selling price is determined based on an adjusted market assessment are recognised in other comprehensive income.
ADDITIONAL approach, using estimation techniques and taking into consideration the various
INFORMATION redemption options available to Skywards members. Marketing income earned from Share of results of investments accounted for using the equity method are translated
partners associated with the programme is recognised when the miles are issued. into AED at average exchange rates for the year whereas Emirates’ share of net
investments is translated at the exchange rate prevailing at the end of the reporting
Revenue from redemption of miles is recognised in the consolidated income statement period. Translation differences relating to investments in associates, joint ventures and
only when Emirates fulfils its obligations by supplying free or discounted goods or monetary assets and liabilities that form part of a net investment in a foreign operation
services on redemption of the miles accrued. are recognised in other comprehensive income.

Liquidated damages
Income from claims for liquidated damages on aircraft and related assets is recognised
in the consolidated income statement as other income or a reduction to operating costs
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
are not 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.
When investments in subsidiaries, associates, joint ventures or net investment in a
foreign operation are disposed of, the related translation differences previously 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 reporting period. Exchange differences arising are recognised in
other comprehensive income.

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2. Summary of significant accounting policies (continued) The estimated useful lives and residual values are:
OVERVIEW
Income tax Aircraft 15 - 18 years (residual value nil - 10%)
EMIRATES Aircraft spare engines and parts 5 - 15 years (residual value nil - 10%)
The tax expense for the period comprises current and deferred tax. Buildings 15 - 40 years
DNATA Other property, plant and 3 - 20 years or over the lease term, if shorter
The current income tax charge is calculated on the basis of the tax laws enacted or equipment
GROUP
substantively enacted at the end of the reporting period in the countries where Emirates
operates and generates taxable income. Major overhaul expenditure including engine restoration (presented within other
property, plant and equipment) is capitalised and depreciated over the shorter of the
FINANCIAL
INFORMATION Deferred income tax is provided in full on temporary differences arising between the tax period to the next major overhaul, the remaining lease term or the useful life of the asset
bases of assets and liabilities and their carrying amounts in the consolidated financial concerned.
EMIRATES statements. However, deferred income tax is not recognised if it arises from initial
FINANCIAL
recognition of an asset or liability in a transaction other than a business combination The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at
COMMENTARY
that at the time of the transaction affects neither accounting nor taxable profit or loss. the end of each reporting period.
| DNATA
DNATA Also, deferred tax liabilities are not recognised if they arise from the initial recognition of
| FINANCIAL
FINANCIAL
goodwill in a business combination. Capital projects are stated at cost. When the asset is ready for its intended use, it is
| COMMENTARY
COMMENTARY
transferred from capital projects to the appropriate category under property, plant and
| EMIRATES
EMIRATES Deferred income tax is determined using tax rates (and laws) that have been enacted or equipment and depreciated in accordance with Emirates’ policies.
| CONSOLIDATED
CONSOLIDATED
substantively enacted at the end of reporting period and are expected to apply when the
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS related deferred income tax asset is realised or the deferred income tax liability is settled. An item of property, plant and equipment is derecognised upon disposal or when no
future economic benefits are expected from its use or disposal. Gains and losses on
DNATA
CONSOLIDATED
Deferred income tax assets are recognised only to the extent that it is probable that disposals are determined by comparing proceeds with the carrying amount and are
FINANCIAL future taxable profit will be available against which the temporary differences can be recognised in the consolidated income statement.
STATEMENTS utilised.
ADDITIONAL
Borrowing costs
INFORMATION Property, plant and equipment
Borrowing costs directly attributable to the acquisition, construction or production of
Property, plant and equipment is stated at cost less accumulated depreciation and qualifying assets are added to the cost of the assets until such time that the assets are
impairment. Cost consists of the purchase cost, together with any incidental expenses of substantially ready for their intended use. Where funds are borrowed specifically for the
acquisition. Emirates receives credits from manufacturers in connection with the purpose of obtaining a qualifying asset, any investment income earned on temporary
acquisition of certain aircraft and engines. These credits are recorded as a reduction to surplus funds is deducted from borrowing costs eligible for capitalisation. In the case of
the cost of the related aircraft and engines. 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
Subsequent costs are included in the asset’s carrying amount or recognised as a cost of the asset.
separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to Emirates 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.

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2. Summary of significant accounting policies (continued) Goodwill is tested for impairment annually or more frequently if events or changes in
OVERVIEW circumstances indicate a potential impairment and is carried at cost less accumulated
Finance and operating leases impairment losses. For the purpose of impairment testing, goodwill is allocated to cash
EMIRATES generating units or a group of cash generating units that are expected to benefit from
Where property, plant and equipment has been financed by lease agreements under the business combination in which the goodwill arose. An impairment loss is recognised
DNATA
which substantially all of the risks and rewards incidental to ownership are transferred to when the carrying value of the cash generating units or a group of cash generating units
Emirates, they are classified as finance leases. Finance leases are capitalised at the exceeds its recoverable amount. Impairment losses on goodwill are not reversed.
commencement of the lease at the lower of the present value of the minimum lease
GROUP
payments or the fair value of the leased asset. The corresponding lease obligations are Gains and losses on the disposal of an entity include the carrying amount of goodwill
included under liabilities. Lease payments are treated as consisting of capital and interest relating to the entity sold.
FINANCIAL
INFORMATION
elements. The interest element is charged to the consolidated income statement as
finance costs over the lease term so as to produce a constant periodic rate of interest on Other intangible assets
EMIRATES the remaining balance of the liability. Property, plant and equipment acquired under
FINANCIAL finance leases are depreciated in accordance with Emirates’ policies. Intangible assets are capitalised at cost only when future economic benefits are
COMMENTARY
probable. Cost includes the purchase price together with any directly attributable
| DNATA
DNATA Leases, where a significant portion of risks and rewards of ownership are retained by the expenditure.
| FINANCIAL
FINANCIAL lessor, are classified as operating leases. Lease rental charges, including advance rentals
| COMMENTARY
COMMENTARY
in respect of operating leases, are charged to the consolidated income statement on a In the case of internally developed computer software, development expenditure is
| EMIRATES
EMIRATES straight-line basis over the period of the lease. capitalised if costs can be measured reliably, the product is technically and commercially
| CONSOLIDATED
CONSOLIDATED feasible, future economic benefits are probable, and there exists an intent and ability to
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS Gains and losses arising on sale and leaseback transactions resulting in an operating complete the development and to use or sell the asset. Other research and development
lease and where the sale price and subsequent future lease payments are at fair value, expenditure not meeting the criteria for capitalisation are recognised in the consolidated
DNATA are recognised immediately in the consolidated income statement. Where the sale price income statement as incurred.
CONSOLIDATED
FINANCIAL is below fair value, any losses are immediately recognised in the consolidated income
STATEMENTS statement, except where the loss is compensated for by future lease payments at below Intangible assets are amortised on a straight-line basis over their estimated useful lives
market price, it is deferred and amortised in proportion to the lease payments over the which are:
ADDITIONAL
INFORMATION period for which the asset is expected to be used. Where the sale price is above fair
value, the excess over fair value is accounted for as a deferred credit and amortised over Service rights 15 years
the period for which the asset is expected to be used. Trade names 20 years
Contractual rights 15 years
Lease classification is made at the inception of the lease. Lease classification is changed Computer software 3-7 years
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 The intangible assets’ useful lives are reviewed, and adjusted if appropriate, at the end of
classified differently at inception had the changed terms been in effect at that time. The each reporting period.
revised agreement is considered as a new agreement and accounted for prospectively
over the remaining term of the lease. An intangible asset is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Gains and losses on derecognition are determined
Goodwill by comparing proceeds with the carrying amount and are recognised in the
consolidated income statement.
Goodwill represents the excess of the aggregate of the consideration transferred, the
amount of any non-controlling interest in the acquired entity and the acquisition-date
fair value of any previous equity interest in the acquired entity over the fair value of the
net identifiable assets at the date of acquisition.

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2. Summary of significant accounting policies (continued) Emirates’ criteria to account for a derivative financial instrument as a hedge include:
OVERVIEW
Impairment of non-financial assets  the hedging relationship consists only of eligible hedging instruments and eligible
EMIRATES hedged items; and
Goodwill is not subject to amortisation and is tested annually for impairment. Other
DNATA non-financial assets are reviewed for impairment whenever events or changes in  at the inception of the hedging relationship there is a formal designation and
circumstances indicate that the carrying amount may not be recoverable. An impairment documentation of the hedging relationship, including Emirates’ risk management
loss is recognised for the amount by which the asset’s carrying amount exceeds its objective and strategy for undertaking the hedge, identification of the hedging
GROUP
recoverable amount. The recoverable amount is the higher of an asset’s fair value less instrument, the hedged item, the nature of the risk being hedged, and how Emirates
costs to sell and value in use. For the purpose of assessing impairment, non-aircraft will assess the hedging instrument's effectiveness; and
FINANCIAL
INFORMATION
related assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash generating units). In respect of aircraft and related assets, these assets  there is an economic relationship between the hedged item and the hedging
EMIRATES are assessed for impairment at the Emirates’ network level. Non-financial assets other instrument; and
FINANCIAL than goodwill are reviewed at the end of each reporting period for possible reversals of
COMMENTARY
historic impairment losses.  effect of credit risk does not “dominate the value changes” that results from the
| DNATA
DNATA economic relationship. The hedge ratio of the hedging relationship is the same as
| FINANCIAL Financial assets
FINANCIAL
| COMMENTARY
COMMENTARY
that resulting from the quantity of hedged item that Emirates actually hedges and
the quantity of the hedging instrument that Emirates actually uses to hedge that
| EMIRATES
EMIRATES Financial assets are classified in accordance with IFRS 9 as ‘Financial assets at amortised quantity for hedged item.
| CONSOLIDATED
CONSOLIDATED cost’ which consists of financial assets that are debt instruments and are intended to be
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS held to maturity on the basis of Emirates business model. Furthermore, these Changes in the fair value of derivatives that are designated and qualify as cash flow
instruments have fixed payment terms and meet the criteria for cash flow characteristics hedges and that prove to be highly effective in relation to the hedged risk are
DNATA i.e. contractual payments of principal and interest. At Emirates, this category includes recognised in other comprehensive income. When the forecasted transaction results in
CONSOLIDATED
FINANCIAL trade and other receivables (excluding prepayments), short term bank deposits and cash the recognition of a non-financial asset or a non-financial liability, the gains and losses
STATEMENTS and cash equivalents. They are classified as non-current or current assets according to previously recognised in other comprehensive income are re-classified and included in
their remaining maturity at the balance sheet date. the initial carrying amount of the asset or liability. These gains and losses are ultimately
ADDITIONAL
INFORMATION recognised in the consolidated income statement in the same period during which the
Derivative financial instruments 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
Derivative financial instruments are initially recognised at fair value on the date a the period during which the forecasted transaction affects the consolidated income
derivative contract is entered into and are subsequently remeasured at their fair value. statement and are presented in the same line item as the gains and losses from hedged
Derivatives are designated as a hedge of the exposure to variability in cash flows that is items.
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 When a cash flow hedging instrument expires or is sold, terminated or exercised, or
market prices or dealer quotes for similar instruments, discounted cash flow models and when a hedge no longer meets the criteria for hedge accounting under IFRS 9, any
option pricing models as appropriate. All derivatives are carried as assets when the fair cumulative gain or loss existing in equity at that time is retained in equity and is
value is positive and as liabilities when the fair value is negative. 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.

Changes in the fair value of derivative instruments that do not qualify for hedge
accounting are recognised immediately in the consolidated income statement.

116
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

2. Summary of significant accounting policies (continued) service in the current and prior periods. Contributions to the pension fund are charged
OVERVIEW to the consolidated income statement in the period in which they fall due.
Inventories
EMIRATES A defined benefit plan is a plan which is not a defined contribution plan. The liability
Inventories are stated at the lower of cost and estimated net realisable value. Cost is recognised in the consolidated statement of financial position for a defined benefit plan
DNATA determined on the weighted average cost basis. 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
GROUP
Trade receivables by independent actuaries using the projected unit credit method.

Trade receivables are initially recognised at fair value and subsequently measured at The present value of the defined benefit obligation is determined by discounting
FINANCIAL
INFORMATION amortised cost using the effective interest method, less provision for impairment. estimated future cash outflows using market yields at the end of the reporting period of
Emirates utilises the simplified approach which uses lifetime expected loss allowances to high quality corporate bonds that are denominated in currency in which the benefits will
EMIRATES calculate impairment provisions on trade receivables. In the prior year, the impairment of be paid and have terms approximating to the estimated term of the retirement benefit
FINANCIAL
COMMENTARY
trade receivables was recognised based on the incurred loss model. Specific loss obligations.
allowances are also recognised when Emirates become aware of a customer experiencing
| DNATA
DNATA financial difficulty. Trade receivables are written off once management has determined Actuarial gains and losses arising from changes in actuarial assumptions and experience
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY
that such amount will not be recovered. adjustments are recognised in equity through the consolidated statement of
comprehensive income in the period in which they arise.
| EMIRATES
EMIRATES Borrowings
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL
Trade payables
| STATEMENTS
STATEMENTS Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortised cost with any difference between Trade payables are recognised initially at fair value and subsequently measured at
DNATA
CONSOLIDATED
the proceeds (net of transaction costs) and the redemption value recognised in the amortised cost using the effective interest method.
FINANCIAL consolidated income statement over the period of the borrowings using the effective
STATEMENTS interest method. Derecognition of financial assets and financial liabilities
ADDITIONAL
INFORMATION Provisions 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
Provisions are recognised when Emirates has a present legal or constructive obligation as the contractual rights to receive cash flows. Financial liabilities are derecognised only
a result of past events, it is probable that an outflow of resources will be required to when they are extinguished i.e. when the obligations specified in the contract are
settle the obligation and the amount can be reliably estimated. discharged or cancelled or expire.

Provision for aircraft return conditions Cash and cash equivalents

Provision for aircraft return conditions represents the estimate of the cost to meet the Cash and cash equivalents comprise cash and liquid funds with an original maturity of
contractual lease end obligations on certain aircraft and engines held under operating three months or less. Other bank deposits with maturities of less than one year are
leases. The present value of the expected cost is recognised over the lease term classified as short term bank deposits. Bank overdrafts are shown within current
considering the existing fleet plan and long-term maintenance schedules. borrowings and lease liabilities in the consolidated statement of financial position.

Retirement benefit obligations Segment reporting

Emirates operates or participates in various end of service benefit plans, which are
classified either as defined contribution or defined benefit plans.
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’
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. The chief operating decision maker is
considered to be the Emirates’ leadership team who make strategic decisions and are
responsible for allocating resources and assessing performance of the operating
segments.

117
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

2. Summary of significant accounting policies (continued) The stand-alone selling price is determined using the adjusted market assessment
OVERVIEW approach. This approach involves estimation techniques to determine the stand-alone
Offsetting of financial assets and liabilities value of Skywards miles and reflect the weighted average of a number of factors i.e. fare
EMIRATES per sector, flight upgrades and partner rewards based on historical trends. Adjustments
Financial assets and liabilities are offset and the net amount is reported in the to the stand-alone selling price of miles are also made for miles not expected to be
DNATA consolidated statement of financial position only when there is a legally enforceable redeemed by members and the extent to which the demand for an award cannot be
right to offset the recognised amounts and there is an intention to settle on a net basis met.
GROUP
or realise the asset and settle the liability simultaneously. The legally enforceable right
must not be contingent on future events and must be enforceable in the normal course A level of judgement is exercised by management due to the diversity of inputs that go
of business and in the event of default, insolvency or bankruptcy. into determining the stand-alone selling price of miles. A reasonably possible change to
FINANCIAL
INFORMATION any single assumption will not result in a material change to the deferred revenue.
Dividend distribution
EMIRATES Useful lives and residual values of aircraft and related assets
FINANCIAL
COMMENTARY
Dividend distribution to equity holders is recognised as a liability in the consolidated
financial statements in the period in which the dividends are approved. Management assigns useful lives and residual values to aircraft and related assets based
| DNATA
DNATA on the intended use and the economic lives of those assets. Subsequent changes in
| FINANCIAL
FINANCIAL
3. Critical accounting estimates and judgements circumstances such as technological advances or prospective utilisation of the assets
| COMMENTARY
COMMENTARY
concerned could result in the actual useful lives or residual values differing from initial
| EMIRATES
EMIRATES In the preparation of these consolidated financial statements, a number of estimates and estimates.
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL
associated assumptions have been made relating to the application of accounting
| STATEMENTS
STATEMENTS policies and reported amounts of assets, liabilities, income and expense. The estimates Aircraft finance and operating lease classification
and associated assumptions are assessed on an ongoing basis and are based on
DNATA
historical experience and other factors, including expectations of future events that are A lease is classified as a finance lease when substantially all the risks and rewards of
CONSOLIDATED
FINANCIAL believed to be reasonable under the circumstances. The following narrative addresses ownership of an aircraft are transferred to Emirates. In determining the appropriate lease
STATEMENTS the accounting policies that require subjective and complex judgements, often as a result classification, the substance of the transaction rather than the legal form is considered.
of the need to make estimates. Factors considered include but are not limited to the following: whether the lease
ADDITIONAL
INFORMATION transfers ownership of the aircraft to Emirates by the end of the lease term; Emirates has
Passenger and cargo revenue recognition the option to purchase the aircraft at a price that is sufficiently lower than the fair value
on exercise date; the lease term is for the major part of the economic life of the aircraft
Passenger and cargo sales are recognised as revenue when each performance obligation and the present value of the minimum lease payments amount to at least substantially
for the transportation service is fulfilled. The value of unused revenue documents is held all of the fair value of the leased aircraft.
in the consolidated statement of financial position under current liabilities as passenger
and cargo sales in advance. Passenger ticket related breakage is estimated based on Provision for aircraft return conditions
historical trends and recognised in the consolidated income statement proportionally
with each transfer of service to the customer. A 5% change to the breakage percentage The measurement of the provision for aircraft return conditions includes assumptions
will not result in a material change to passenger and cargo revenue. relating to expected costs, escalation rates, discount rates commensurate with the
expected obligation maturity and long-term maintenance schedules. An estimate is
Frequent flyer programme (‘Skywards’) 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
Emirates accounts for Skywards miles (predominantly accrued through sale of flight judgement is exercised by management given the long-term nature and diversity of
tickets or purchase of miles by programme partners) as a separately identifiable assumptions that go into the determination of the provision. A reasonably possible
component of the sales transaction in which they are granted. The consideration in change in any single assumption will not result in a material change to the provision.
respect of the initial sale allocated to Skywards miles is based on their stand-alone value
and is recorded under current liabilities as ‘deferred revenue’ (Note 26).

118
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

3. Critical accounting estimates and judgements (continued) 4. Fair value estimation

OVERVIEW
Valuation of defined benefit obligations The levels of fair value hierarchy are defined as follows:
EMIRATES
The present value of the defined benefit obligations is determined on an actuarial basis Level 1: Measurement is made by using quoted prices (unadjusted) from an active
DNATA using various assumptions that may differ from actual developments in the future. These market.
assumptions include the determination of the discount rate and expected salary Level 2: Measurement is made by means of valuation methods with parameters
GROUP
increases which are reviewed at each reporting date. Due to the complexities involved in derived directly or indirectly from observable market data.
the valuation and its long-term nature, defined benefit obligations are sensitive to Level 3: Measurement is made by means of valuation methods with parameters not
changes in these assumptions. A sensitivity analysis of changes in defined benefit based exclusively on observable market data.
FINANCIAL
INFORMATION obligations due to a reasonably possible change in these assumptions is set out in Note
24. Derivatives are the only financial instruments which are carried at fair value and fall into
EMIRATES level 2 of the fair value hierarchy (Note 34).
FINANCIAL
COMMENTARY
Derivatives comprise forward exchange contracts and interest rate swaps. The forward
| DNATA
DNATA exchange contracts have been fair valued using forward exchange rates that are quoted
| FINANCIAL
FINANCIAL in an active market. Interest rate swaps are fair valued using forward interest rates
| COMMENTARY
COMMENTARY
extracted from observable yield curves.
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS

DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

119
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

evenue 5. Revenue 7. Operating costs 7. Operating costs

OVERVIEW 2019 2018 2019 2018 2019 2018 2019 20
AED m AED m AED m AED m AED m AED m AED m AED
EMIRATES
enger Passenger 78,562 74,262 78,562 74,262 Jet fuel Jet fuel 30,768 24,715 30,768 24,7
go DNATA Cargo 13,056 12,439 13,056 12,439 Employee (see (a) below) Employee (see (a) below) 12,623 13,080 12,623 13,0
sumer goods Consumer goods 1,591 1,625 1,591 1,625 Aircraft operating leases Aircraft operating leases 11,964 11,691 11,964 11,6
GROUP
d and beverage Food and beverage 673 680 673 680 Depreciation and amortisation
Depreciation
(Notes 11 &and
12)amortisation (Notes9,680
11 & 12) 9,193 9,680 9,1
el operations
FINANCIAL Hotel operations 669 746 669 746 Sales and marketing Sales and marketing 6,137 6,404 6,137 6,4
INFORMATION
ering operations Catering operations 654 677 654 677 Handling Handling 5,544 5,335 5,544 5,3
ss baggage
EMIRATES Excess baggage 444 433 444 433 In-flight catering and other operating
In-flight catering
costs and other operating3,519
costs 3,323 3,519 3,3
FINANCIAL
ers COMMENTARY Others 391 363 391 363 Overflying Overflying 2,761 2,891 2,761 2,8

| DNATA
DNATA 96,040 91,225 96,040 91,225 Facilities and IT related costs Facilities
(see (b) below)
and IT related costs (see (b)2,626
below) 2,485 2,626 2,4
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY
Aircraft maintenance Aircraft maintenance 2,413 2,364 2,413 2,3
ther operating income 6. Other operating income Landing and parking Landing and parking 2,231 2,153 2,231 2,1
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED Cost of goods sold Cost of goods sold 1,588 1,575 1,588 1,5
er operating
FINANCIALincome comprises
| FINANCIAL Other operating
AED 906 income
m (2018:comprises
AED 145 AED
m) from
906 m liquidated
(2018: AED 145 m) from liquidated
|
agesSTATEMENTS
and other compensations
STATEMENTS damagesreceived
and other
in connection
compensations
with received
aircraft and
in connection
related with aircraft and related Crew layover Crew layover 1,094 1,125 1,094 1,1
rational matters, AED 324operational
DNATA m (2018: AED
matters,
292 m)AED
being
324the
m (2018:
amortisation
AED 292of m)
gains
being
on the amortisation of gains on Foreign exchange loss - net Foreign exchange loss - net 333 - 333
and CONSOLIDATED
leaseback of aircraft,sale
a Nil
andnet
leaseback
foreign exchange
of aircraft,gain
a Nil(2018:
net foreign
AED 33exchange
m) and gain (2018: AED 33 m) and Corporate overheads (see (c) Corporate
below) overheads (see (c) below) 1,979 1,902 1,979 1,9
FINANCIAL
me of AED 637 m (2018:
STATEMENTS income
AED of627
AED
m) 637
fromm ancillary
(2018: AED
services
627 and
m) from
activities
ancillary services and activities 95,260 88,236 95,260 88,2
dental to Emirates' operations.
incidental to Emirates' operations.
ADDITIONAL
INFORMATION
(a) Employee costs include AED
(a) Employee
742 m (2018:
costsAED
include
732 AED
m) in742
respect
m (2018:
of retirement
AED 732 m) in respect of retirem
benefit obligations (Note 24).benefit obligations (Note 24).

(b) Facilities and IT related(b)costs

Facilities
include
andnon-aircraft
IT related operating
costs include
leasenon-aircraft
charges operating lease char
amounting to AED 910 m (2018:
amounting
AED 922tom).
AED 910 m (2018: AED 922 m).

(c) Corporate overheads include

(c) Corporate
a net charge
overheads
of AED
include
26 m a(2018:
net charge
AED 20of m)
AED
in 26 m (2018: AED 20 m)
respect of impairment losses respect
for tradeofreceivables
impairment(Note
losses
16).
for trade receivables (Note 16).

120
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

inance income and costs8. Finance income and costs 9. Income tax expense 9. Income tax expense
OVERVIEW 2019 2018 2019 2018 2019 2018 2019 2
AED m AED m AED m AED m AED m AED m AED m AED
EMIRATES
ance income Finance income Current income tax expense Current income tax expense 59 44 59
rest income
DNATA on bank deposits
Interest
withincome
companies
on bank
under
deposits with companies under Deferred income tax (Note 28)
Deferred income tax (Note 28) (2) - (2)
mmon control (Note 36) common control (Note 36) 305 214 305 214
57 44 57
rest income
GROUP on other bank
Interest
deposits
income on other bank deposits191 159 191 159
rest income from joint ventures
Interest(Note
income
36)from joint ventures (Note136) 2 1 2 Emirates has secured tax exemptions
Emirates has
by virtue
securedof tax
double
exemptions
taxationbyagreements
virtue of double
and taxation agreements
FINANCIAL
INFORMATION 497 375 497 375 airline reciprocal arrangements
airline
in reciprocal
most of thearrangements
jurisdictionsininmost
whichof itthe
operates.
jurisdictions in which it opera
ance EMIRATES
costs Finance costs Therefore, the income tax Therefore,
expense relates
the income
only totaxcertain
expense
overseas
relates stations
only toofcertain overseas stations

raft finance lease

FINANCIAL
costs Aircraft finance lease costs (1,450) (1,216) (1,450) (1,216) Emirates' operations and its subsidiaries
Emirates' operations
where Emirates
and its issubsidiaries
subject to where
incomeEmirates
tax. Theis subject to income tax.
COMMENTARY
tax charge for these stations
tax ischarge
consistent
for these
with stations
the statutory
is consistent
tax rate with
in these
the statutory tax rate in th
rest expense on bonds and Interest
term loans
expense on bonds and term loans
(445) (146) (445) (146)
| DNATA
DNATA jurisdictions. Providing detailed
jurisdictions.
information
Providing
on effective
detailed
taxinformation
rates is therefore
on effective
not tax rates is therefore
rest| expense
FINANCIAL
FINANCIAL
on bank borrowings
Interest expense
from companies
on bank borrowings from companies
meaningful. meaningful.
der common control (Noteunder
| COMMENTARY
COMMENTARY 36) common control (Note 36) (10) - (10) -
er finance costs
| EMIRATES
EMIRATES Other finance costs (268) (231) (268) (231)
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL (2,173) (1,593) (2,173) (1,593)
| STATEMENTS
STATEMENTS

DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

121
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Segment information 10. Segment information The segment information for

Thethe
segment
year ended
information
31 March
for2019
the year
is as ended
follows:
31 March 2019 is as follows:
OVERVIEW

rates' leadership team monitors

Emirates'the
leadership
operatingteam
results
monitors
of its business
the operating
units for
results
the of its business units for the Catering Recon-
Catering Recon-
EMIRATES
pose of making decisionspurpose
about resource
of making
allocation
decisions
and
about
performance
resource allocation
assessment.and performance assessment. Airline operations Other
Airline
ciliation
operations Total
Other ciliation T
airline business unit, which
The airline
provides
business
commercial
unit, which
air transportation
provides commercial
includingair transportation including AED m AED m AED m
AED m AED m AED m AEDAED
m m AED m AE
DNATA
senger, cargo services and
passenger,
excess cargo
baggage,
services
is the
and
main
excess
reportable
baggage,
segment.
is the main reportable segment.
Total segment revenue Total
92,953
segment revenue
2,820 2,979
92,953 (302)2,820 98,450
2,979 (302) 98,4
ering GROUP
operations is another
Catering
reportable
operations
segment
is another
which reportable
provides in-flight
segmentand
which provides in-flight and
Inter-segment revenue Inter-segment
- revenue
(2,166) (244) - -(2,166) (2,410)
(244) - (2,4
tutional catering services.institutional
'Other' comprises
cateringofservices.
various 'Other'
businesses
comprises
not allocated
of various
to businesses not allocated to
Revenue from external Revenue from external
eportable segment primarily
FINANCIAL a reportable
in relation
segment
to hotel
primarily
operations
in relation
and the
to hotel
sale ofoperations and the sale of
customers customers
92,953 654 2,735
92,953 (302) 654 96,040
2,735 (302) 96,0
sumerINFORMATION
goods, food and beverages.
consumer goods, food and beverages.
Segment profit for the year Segment
486 profit for208
the year 336 486 - 208 1,030336 - 1,0
EMIRATES
performance
FINANCIAL of the airline
The
and
performance
catering operations
of the airline
is evaluated
and catering
basedoperations
on segmentis evaluated based on segment Finance income Finance
492income 8 2 492 (5) 8 497 2 (5) 4
it or COMMENTARY
loss and is measured
profit
consistently
or loss and
withis profit
measured
for the
consistently
year in thewith
consolidated
profit for the year in the consolidated Finance costs Finance
(2,172)
costs - (6)
(2,172) 5 - (2,173) (6) 5 (2,1
ncial| statements. financial statements.
DNATA
DNATA
| FINANCIAL
Income tax (expense) / Income tax (expense) /
FINANCIAL
| COMMENTARY
COMMENTARY credit credit (68) - 11 (68) - - (57) 11 -
ment revenue is measured
Segment
in a manner
revenueconsistent
is measured
withinthat
a manner
in the consolidated
consistent with that in the consolidated
| EMIRATES
EMIRATES Depreciation and Depreciation and
me | statement, with the income
exception
statement,
of notional
withrevenues
the exception
and costs
of notional
in the airline
revenues and costs in the airline
CONSOLIDATED
CONSOLIDATED amortisation amortisation
(9,355) (146) (179)
(9,355) - (146) (9,680)
(179) - (9,6
ment| FINANCIAL
arising from the usage
FINANCIAL segment
of transportation
arising from the
services
usagee.g.
of leave
transportation
passage ofservices
staff e.g. leave passage of staff Share of results of Share of results of
| STATEMENTS
STATEMENTS
duty travel of staff and
and duty
consultants
travel are
of staff
eliminated
and consultants
when preparing
are eliminated
the when preparing the investments accounted for investments accounted for
solidated
DNATAfinancial statements.
consolidated
This adjustment
financial statements.
is presentedThis
as aadjustment
reconcilingisitem.
presented as a reconciling item. using the equity method using the
- equity method
- 116 - - - 116116 - 1
CONSOLIDATED
breakdown
FINANCIALof revenue from
The breakdown
external customers
of revenue
by from
nature
external
of business
customers
activity
byisnature of business activity is
STATEMENTS Segment assets Segment
119,489 assets 3,072 5,522
119,489 (685)3,072127,398
5,522 (685) 127,3
vided in Note 5. provided in Note 5.
Investments accounted for Investments accounted for
ADDITIONAL
mentINFORMATION
assets include inter-segment
Segment assets
loans include
and receivables,
inter-segment
whichloans
are eliminated
and receivables,
on which are eliminated on using the equity method using the
- equity method
- 683 - - - 683683 - 6
solidation. This consolidation
consolidation.
adjustmentThis
is presented
consolidation
as a adjustment
reconciling is
item.
presented as a reconciling item. Additions to property, Additions to property,
plant and equipment plant
12,915
and equipment
191 72
12,915 - 191 13,178 72 - 13,1
Additions to intangible Additions to intangible
assets assets253 3 3 253 - 3 259 3 - 2
Additions to advance lease Additions to advance lease
rentals rentals
169 - - 169 - - 169 - - 1

122
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Segment information (continued)

10. Segment information (continued) Geographical information Geographical information
OVERVIEW 2019 2018 2019 2
segment information for
Thethe
segment
year ended
information
31 Marchfor
2018
the is
year
as follows:
ended 31 March 2018 is as follows:
AED m AED m AED m AE
EMIRATES

Recon- Recon- Revenue from external customers:

Revenue from external customers:
Catering Catering
DNATA
Airline operations ciliation
Airline
Other operations Total
Other ciliation Total Europe Europe 28,258 26,727 28,258 26,7
AED m AED m AED m
AED m AED m AED m AEDAED
m m AED m AED m East Asia and Australasia East Asia and Australasia 26,599 25,409 26,599 25,4
GROUP
l segment revenue Total
88,008
segment revenue
2,709 3,08588,008 (321)2,709 93,481
3,085 (321) 93,481 Americas Americas 14,453 13,441 14,453 13,4
-segment revenue
FINANCIAL Inter-segment
- revenue
(2,032) (224) - - (2,032) (2,256)(224) - (2,256) Africa Africa 10,211 9,343 10,211 9,3
INFORMATION
enue from external Revenue from external Gulf and Middle East Gulf and Middle East 8,292 8,544 8,292 8,5
omersEMIRATES customers
88,008 677 2,86188,008 (321) 677 91,225
2,861 (321) 91,225 West Asia and Indian Ocean West Asia and Indian Ocean 8,227 7,761 8,227 7,7
FINANCIAL
ment COMMENTARY
profit for the year Segment
2,286 profit for260
the year 433 2,286 - 260 2,979 433 - 2,979 96,040 91,225 96,040 91,2
nce income
| DNATA
DNATA
Finance
373income 6 2 373 (6) 6 375 2 (6) 375
| FINANCIAL
nce costs
FINANCIAL Finance
(1,592)costs - (7)
(1,592) 6 - (1,593) (7) 6 (1,593) Revenue from inbound and Revenue
outboundfrom
airline
inbound
operations
and outbound
between the
airline
UAEoperations
and the between the UAE and
| COMMENTARY
COMMENTARY
me tax (expense) / Income tax (expense) / overseas point is attributed to
overseas
the geographical
point is attributed
area in which
to thethe
geographical
respective area
overseas
in which the respective overs
| EMIRATES
EMIRATES
it | CONSOLIDATED credit(51) - 7 (51) - - (44) 7 - (44) points are located. Revenue
points
from are
other
located.
segments
Revenue
is reported
from other
based
segments
upon the
is reported based upon
CONSOLIDATED
|
reciation and
FINANCIAL
FINANCIAL Depreciation and geographical area in which sales
geographical
are made area
or services
in which
aresales
rendered.
are made or services are rendered.
| STATEMENTS
STATEMENTS
rtisation amortisation
(8,874) (126) (193)
(8,874) - (126) (9,193)(193) - (9,193)
The major revenue earning asset
The major
is therevenue
aircraft fleet,
earningwhich
assetis isregistered
the aircraft
in the
fleet,UAE.
which is registered in the U
e of results
DNATA of Share of results of
CONSOLIDATED Since the aircraft fleet is deployed
Since the
flexibly
aircraft
across
fleetEmirates'
is deployed
route
flexibly
network,
across
providing
Emirates' route network, provid
stments accounted
FINANCIAL for investments accounted for
information on non-current assets
information
by geographical
on non-current
areas assets
is not considered
by geographical
meaningful.
areas is not considered meaning
g the equity method
STATEMENTS
using the
- equity method
- 155 - - - 155 155 - 155
ment ADDITIONAL
assets Segment
119,670 assets 3,101 5,563
119,670 (747)3,101127,587
5,563 (747) 127,587
INFORMATION No single external customer contributes
No single external
10% or customer
more of Emirates'
contributes
revenues.
10% or more of Emirates' revenues.
stments accounted for Investments accounted for
g the equity method using the
- equity method
- 662 - - - 662 662 - 662
tions to property, Additions to property,
t and equipment plant
8,083
and equipment
136 68 8,083 - 136 8,287 68 - 8,287
tions to intangible Additions to intangible
ts (including assets (including
uisitions) acquisitions)
193 5 23 193 - 5 221 23 - 221
tions to advance lease Additions to advance lease
als rentals
1,286 - - 1,286 - - 1,286 - - 1,286

123
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11. Property, plant and equipment

OVERVIEW
Other
EMIRATES Aircraft Land property,
engines and plant and Capital
DNATA Aircraft and parts buildings equipment projects Total
AED m AED m AED m AED m AED m AED m
GROUP
Cost

FINANCIAL 1 April 2017 76,175 6,899 14,033 15,154 9,017 121,278

INFORMATION Additions - 189 14 3,354 4,730 8,287

EMIRATES Transfer from capital projects 5,152 303 919 354 (6,728) -
FINANCIAL
COMMENTARY
Disposals / write-offs (339) (300) (5) (1,968) - (2,612)
31 March 2018 80,988 7,091 14,961 16,894 7,019 126,953
| DNATA
DNATA
| FINANCIAL
FINANCIAL Accumulated depreciation
| COMMENTARY
COMMENTARY
1 April 2017 19,569 1,844 3,937 9,030 - 34,380
| EMIRATES
EMIRATES Charge for the year 4,808 412 598 3,210 - 9,028
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL Disposals / write-offs (310) (156) (5) (1,935) - (2,406)
| STATEMENTS
STATEMENTS
31 March 2018 24,067 2,100 4,530 10,305 - 41,002
DNATA
CONSOLIDATED Net book amount
FINANCIAL
31 March 2018 56,921 4,991 10,431 6,589 7,019 85,951
STATEMENTS

ADDITIONAL
INFORMATION

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11. Property, plant and equipment (continued)

OVERVIEW Other
Aircraft Land property,
EMIRATES engines and plant and Capital
Aircraft and parts buildings equipment projects Total
DNATA
AED m AED m AED m AED m AED m AED m

GROUP
Cost
1 April 2018 80,988 7,091 14,961 16,894 7,019 126,953
FINANCIAL Additions - 205 54 3,527 9,392 13,178
INFORMATION
Transfer from capital projects 11,069 75 1,370 558 (13,072) -
EMIRATES Disposals / write-offs (220) (369) (6) (2,325) - (2,920)
FINANCIAL
COMMENTARY Currency translation differences - - (27) (3) - (30)

| DNATA
DNATA 31 March 2019 91,837 7,002 16,352 18,651 3,339 137,181
| FINANCIAL
FINANCIAL Accumulated depreciation
| COMMENTARY
COMMENTARY
1 April 2018 24,067 2,100 4,530 10,305 - 41,002
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED Charge for the period 5,207 444 645 3,204 - 9,500
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS Disposals / write-offs (220) (259) (2) (2,256) - (2,737)
Currency translation differences - - (10) (5) - (15)
DNATA
CONSOLIDATED 31 March 2019 29,054 2,285 5,163 11,248 - 47,750
FINANCIAL
STATEMENTS Net book amount
31 March 2019 62,783 4,717 11,189 7,403 3,339 89,431
ADDITIONAL
INFORMATION
The net book amount of property, plant and equipment includes AED 52,218 m (2018: AED 53,164 m) in respect of assets held under
finance leases.

The net book amount of aircraft includes an amount of AED 7,448 m (2018: AED 5,671 m) in respect of assets provided as security against
term loans.

Land of AED 983 m (2018: AED 922 m) is carried at cost and is not depreciated.

Property, plant and equipment includes interest capitalised during the year amounting to AED 121 m (2018: AED 163 m). The interest on
general borrowings for qualifying assets was capitalised using an annual weighted average capitalisation rate of 4.0% (2018: 4.1%).

Capital projects include pre-delivery payments of AED 2,579 m (2018: AED 4,560 m) in respect of aircraft due for delivery between 2020
and 2028 (Note 31).

The net book amount of other property, plant and equipment includes AED 5,209 m (2018: AED 4,578 m) pertaining to aircraft and
engine related overhauls.

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12. Intangible assets

OVERVIEW Service Trade Contractual Computer
Goodwill rights names rights software Total
EMIRATES
AED m AED m AED m AED m AED m AED m
Cost
DNATA
1 April 2017 597 282 19 56 1,351 2,305
GROUP Additions - - - - 209 209
Disposals / write-offs - - - - (3) (3)
FINANCIAL
Currency translation differences - - - 1 - 1
INFORMATION
Acquisition 12 - - - - 12
EMIRATES
31 March 2018 609 282 19 57 1,557 2,524
FINANCIAL
COMMENTARY Accumulated amortisation
| DNATA
DNATA 1 April 2017 - 137 8 16 703 864
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY Amortisation for the year - 19 1 5 140 165
Disposals / write-offs - - - - (1) (1)
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED 31 March 2018 - 156 9 21 842 1,028
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS Net book value
31 March 2018 609 126 10 36 715 1,496
DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

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2018-19

12. Intangible assets (continued)

OVERVIEW Service Trade Contractual Computer
Goodwill rights names rights software Total
EMIRATES AED m AED m AED m AED m AED m AED m
Cost
DNATA
1 April 2018 609 282 19 57 1,557 2,524
Additions - - - - 259 259
GROUP
Currency translation differences - - - (1) - (1)
31 March 2019 609 282 19 56 1,816 2,782
FINANCIAL
INFORMATION Accumulated amortisation
1 April 2018 - 156 9 21 842 1,028
EMIRATES Amortisation for the period - 19 1 5 155 180
FINANCIAL
COMMENTARY 31 March 2019 - 175 10 26 997 1,208
Net book value
| DNATA
DNATA
| FINANCIAL
FINANCIAL 31 March 2019 609 107 9 30 819 1,574
| COMMENTARY
COMMENTARY
Computer software includes an amount of AED 291 m (2018: AED 212 m) in respect of projects under implementation.
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED
For the purpose of testing goodwill impairment, the recoverable amounts for cash generating units have been determined on the basis of
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS value-in-use calculations using cash flow forecasts approved by management covering a three year period. Cash flows beyond the three
year period have been extrapolated using long term terminal growth rates. The key assumptions used in the value-in-use calculations
DNATA
CONSOLIDATED include a risk adjusted pre-tax discount rate of 12% (2018: 12%), gross margins consistent with historical trends and growth rates based
FINANCIAL
STATEMENTS on management's expectations for market development. The long term terminal growth rate of 2% (2018: 2%) does not exceed the long
term average growth rate for the markets in which the cash generating units operate. Any reasonably possible change to the assumptions
ADDITIONAL
INFORMATION will not lead to an impairment charge. The goodwill allocated to the cash generating unit or groups of cash generating units is as follows:

Cash generating unit Location Reportable segment Goodwill

2019 2018
AED m AED m
Catering operations UAE Catering operations 369 369
Consumer goods UAE Others 212 212
Food and beverage UAE Others 25 25
Food and beverage Australia Others 3 3
609 609

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13. Investments in subsidiaries, associates and joint ventures

OVERVIEW Country of
Percentage of incorporation
EMIRATES beneficial Percentage of and principal
interest equity owned Principal activities operations
DNATA
Principal subsidiaries
Wholesale and retail of consumer
GROUP
Maritime & Mercantile International L.L.C. 68.7 68.7 goods UAE
FINANCIAL Emirates Leisure Retail L.L.C. 68.7 68.7 Food and beverage operations UAE
INFORMATION
Emirates Leisure Retail (Singapore) Pte Ltd. 100 100 Food and beverage operations Singapore
EMIRATES Emirates Leisure Retail (Australia) Pty Ltd. 100 100 Food and beverage operations Australia
FINANCIAL
COMMENTARY Emirates Hotel L.L.C. 100 100 Hotel operations UAE
Emirates Hotels (Australia) Pty Ltd. 100 100 Hotel operations Australia
| DNATA
DNATA
| FINANCIAL
FINANCIAL Emirates Flight Catering Company L.L.C. 90 90 In-flight and institutional catering UAE
| COMMENTARY
COMMENTARY

| EMIRATES
EMIRATES
None of the subsidiaries have non-controlling interests that are material to Emirates.
| CONSOLIDATED
CONSOLIDATED
|
|
FINANCIAL
FINANCIAL
Principal joint ventures
STATEMENTS
STATEMENTS
Emirates-CAE Flight Training L.L.C. 50 51 Flight simulator training UAE
DNATA
CONSOLIDATED Premier Inn Hotels L.L.C. 51 51 Hotel operations UAE
FINANCIAL
STATEMENTS
Wholesale and retail of consumer
Arabian Harts International Limited 50 50 goods UAE
ADDITIONAL
INFORMATION Premier Inn Hotels L.L.C. is subject to joint control and therefore accounted for as a joint venture.

128
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ANNUAL REPORT

2018-19

nvestments in subsidiaries,
13. Investments
associates and
in subsidiaries,
joint ventures
associates
(continued)
and joint ventures (continued) 14. Advance lease rentals 14. Advance lease rentals
OVERVIEW 2019 2018 2019 20
vement of investments accounted
Movementfor
of using
investments
the equity
accounted
methodfor using the equity method AED m AED m AED m AED
EMIRATES
2019 2018 2019 2018 Balance brought forward Balance brought forward 5,651 4,901 5,651 4,9
DNATA AED m AED m AED m AED m Additions during the year Additions during the year 169 1,286 169 1,2
nce brought forward Balance brought forward 662 676 662 676 Charge for the year Charge for the year (599) (536) (599) (5
GROUP
stments during the year Investments during the year 74 5 74 5 Balance carried forward Balance carried forward 5,221 5,651 5,221 5,6
e of results
FINANCIAL Share of results 116 155 116 155 Advance lease rentals will be Advance
charged to
lease
therentals
consolidated
will be charged to the consolidated
INFORMATION income statement as follows: income statement as follows:
dends Dividends (126) (175) (126) (175)
Within one year Within one year 602 586 602 5
osalsEMIRATES
during the year Disposals during the year (38) - (38) -
FINANCIAL
Over one year Over one year 4,619 5,065 4,619 5,0
ency COMMENTARY
translation differences
Currency translation differences (5) 1 (5) 1
nce| carried
DNATA forward
DNATA Balance carried forward 683 662 683 662 Advance lease rentals are non-refundable
Advance lease in
rentals
the event
are non-refundable
of the related inlease
the being
event of the related lease be
| FINANCIAL
FINANCIAL terminated prior to its expiry.terminated prior to its expiry.
| COMMENTARY
COMMENTARY
ndividual associate is material
No individual
to Emirates.
associate
The aggregate
is materialfinancial
to Emirates.
information
The aggregate
of financial information of
Advance lease rentals include
Advance
AED 236
lease
m (2018:
rentalsAED
include
275 AED
m) related
236 m to
(2018:
a company
AED 275 m) related to a comp
ciates is set out below: associates is set out below:
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED under common control. under common control.
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS
2019 2018 2019 2018
DNATA AED m AED m AED m AED m 15. Inventories 15. Inventories
CONSOLIDATED
e of results of associates Share
FINANCIAL of results of associates 70 85 70 85 2019 2018 2019 20
STATEMENTS AED m AED m AED m AED
re of total comprehensive
Share
income
of total
of associates
comprehensive income 70
of associates 85 70 85
ADDITIONAL In-flight consumables In-flight consumables 1,378 1,247 1,378 1,2
INFORMATION
regate carrying value ofAggregate
investments
carrying
in associates
value of investments
48 in associates
50 48 50 Consumer goods Consumer goods 540 477 540 4
Engineering Engineering 453 495 453 4
ndividual joint venture is No
material
individual
to Emirates.
joint venture
The aggregate
is materialfinancial
to Emirates.
information
The aggregate financial information Others Others 154 168 154 1
int ventures is set out below:
of joint ventures is set out below: 2,525 2,387 2,525 2,3

2019 2018 2019 2018

In-flight consumables includeIn-flight
AED 964 consumables
m (2018: AED
include
836 m)
AEDrelating
964 m to
(2018:
itemsAED
which
836 m) relating to items wh
AED m AED m AED m AED m
are not expected to be consumed
are not
within
expected
twelvetomonths
be consumed
after the
within
reporting
twelve
period.
months after the reporting period.
e of results of joint ventures
Share of results of joint ventures 46 70 46 70
re of total comprehensive
Share
income
of total
of joint
comprehensive
ventures income 46
of joint ventures
70 46 70

regate carrying value ofAggregate

investments
carrying
in joint
value of investments in joint
tures ventures 635 612 635 612

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Trade and other receivables

16. Trade and other receivables The net provision for impairment
The net
losses
provision
for trade
forreceivables
impairmentAED
losses
26 for
m (2018:
trade receivables
AED 20 AED 26 m (2018: AED
m) is included in operating costs
m) is(Note
included
7). in operating costs (Note 7).
OVERVIEW 2019 2018 2019 2018
AED m AED m AED m AED m
EMIRATES For the purpose of calculating
Forexpected
the purpose
credit
of losses,
calculating
Emirates
expected
categorises
credit its
losses,
tradeEmirates categorises its tra
e receivables - net of provision
Trade receivables - net of provision 5,770 5,743 5,770 5,743 receivables by IATA agents, credit
receivables
card service
by IATAproviders
agents, credit
and others.
card service
Expected
providers
credit and others. Expected cre
ayments
DNATA Prepayments 2,886 3,081 2,886 3,081 loss allowances are less than 1.5%
loss allowances
across these
arecategories.
less than 1.5% across these categories.
ed parties (Note 36) Related parties (Note 36) 187 229 187 229 The impairment charge on trade
The impairment
receivables charge
recognised
on trade
in thereceivables
consolidated
recognised
income in the consolidated inco
GROUP
ating lease and other deposits
Operating lease and other deposits 508 779 508 779 statement during the year primarily
statement
relates
during
to ticketing
the year agents
primarily
whorelates
are in
tounexpected
ticketing agents who are in unexpec
r receivables
FINANCIAL Other receivables 1,528 1,108 1,528 1,108 difficult economic situations difficult
and are economic
unable to situations
meet theirand
obligations
are unable
under
to meet
the IATA
their obligations under the IA
INFORMATION
10,879 10,940 10,879 10,940 agency programme. Amountsagency
charged
programme.
to the provision
Amountsaccount
charged
are to
written
the provision
off whenaccount are written off wh

Receivables
EMIRATES over one year
Less: Receivables over one year (139) (172) (139) (172) there is no expectation of further
thererecovery.
is no expectation of further recovery.
FINANCIAL
COMMENTARY 10,740 10,768 10,740 10,768 Expected credit losses for related
Expected
partycredit
and other
lossesreceivables
for related are
party
lessand
than
other
1% receivables
as the are less than 1% as
| DNATA balances are held with companies
balances
withare
high
held
credit
withratings
companies
and are
with
short
highterm
credit
in ratings
nature and are short term in nat
ayments include an amount
DNATA
| FINANCIAL Prepayments
of AED 55
include
m (2018:
an amount
AED 68 of
m)AED
paid55tomcompanies
(2018: AED 68 m) paid to companies
FINANCIAL and no significant balances are
andoverdue.
no significant balances are overdue.
er common control.
| COMMENTARY
COMMENTARY under common control.
| EMIRATES
EMIRATES
carrying amounts of trade,
Therelated
carrying
party
amounts
and other
of trade,
receivables
related approximate
party and other
theirreceivables approximate their The maximum exposure to credit
The maximum
risk of trade,
exposure
relatedtoparty
creditand
riskother
of trade,
receivables
related at
party and other receivables
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
values which fall into level
FINANCIAL fair values
3 of the
which
fair fall
value
intohierarchy.
level 3 of
Anythechange
fair value
to the
hierarchy. Any change to the the reporting date is the carrying
the reporting
value of each
dateclass
is theofcarrying
receivable.
value of each class of receivable.
| STATEMENTS
STATEMENTS
ation method will not result
valuation
in a method
significant
willchange
not result
to the
in afair
significant
value of change
these to the fair value of these
The ageing of trade receivables
Thethat
ageing
are past
of trade
due receivables
but not impaired
that are
is as
past
follows:
due but not impaired is as follows:
vables.
DNATA receivables.
CONSOLIDATED
FINANCIAL 2019 2018 2019 20
ivables over one year
STATEMENTS include prepayments
Receivables andyear
over one other
include
receivables.
prepayments and other receivables. AED m AED m AED m AED

ements in the provision for

ADDITIONAL Movements
impairment
in the
of trade
provision
receivables
for impairment
are as follows:
of trade receivables are as follows: Below 3 months Below 3 months 352 677 352 6
INFORMATION
2019 2018 2019 2018 3-6 months 3-6 months 57 51 57
AED m AED m AED m AED m Above 6 months Above 6 months 27 47 27
436 775 436 7
nce brought forward Balance brought forward 81 83 81 83
ge for the year Charge for the year 68 74 68 74 For further details on credit risk
Formanagement,
further detailsrefer
on credit
Note risk
37. management, refer Note 37.
sed amounts reversed Unused amounts reversed (42) (54) (42) (54)
unts written off as uncollectible
Amounts written off as uncollectible (32) (24) (32) (24)
ency translation differences
Currency translation differences (6) 2 (6) 2
nce carried forward Balance carried forward 69 81 69 81

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2018-19

17. Capital
OVERVIEW
Capital represents the permanent capital of Emirates.
EMIRATES

18. Other reserves

DNATA
Cash flow Translation
hedge reserve reserve Total
GROUP
AED m AED m AED m

FINANCIAL 1 April 2017 (143) 2 (141)

INFORMATION
Currency translation differences - 1 1
EMIRATES Net gain on fair value of cash flow hedges 54 - 54
FINANCIAL
COMMENTARY Transferred to the consolidated income statement 101 - 101

| DNATA
DNATA 31 March 2018 12 3 15
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY
Currency translation differences - (17) (17)
Net loss on fair value of cash flow hedges (102) - (102)
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED Transferred to the consolidated income statement 31 13 44
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS 31 March 2019 (59) (1) (60)

DNATA
CONSOLIDATED The amounts transferred to the consolidated income statement have been (debited)/credited to the following line items:
FINANCIAL
STATEMENTS

2019 2018
ADDITIONAL
INFORMATION AED m AED m

Operating costs - 2
Finance costs (31) (103)
Other operating income (13) -
(44) (101)

131
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2018-19

Borrowings and lease liabilities

19. Borrowings and lease liabilities 20. Bonds 20. Bonds
OVERVIEW 2019 2018 2019 2018 2019 2018 2019 2
AED m AED m AED m AED m AED m AED m AED m AE
EMIRATES
n-current Non-current Balance brought forward Balance brought forward 5,780 4,187 5,780 4,1
ds (Note 20)
DNATA Bonds (Note 20) 4,006 4,821 4,006 4,821 Additions during the year Additions during the year - 2,203 - 2,
m loans (Note 21) Term loans (Note 21) 7,377 4,448 7,377 4,448 Repayments during the year Repayments during the year (935) (610) (935) (
GROUP
se liabilities (Note 22) Lease liabilities (Note 22) 34,050 32,802 34,050 32,802 Balance carried forward Balance carried forward 4,845 5,780 4,845 5,7
FINANCIAL 45,433 42,071 45,433 42,071 Less: Transaction costs Less: Transaction costs (24) (29) (24)
rent INFORMATION Current 4,821 5,751 4,821 5,7
ds (Note 20)
EMIRATES Bonds (Note 20) 815 930 815 930 Bonds are repayable as follows:
Bonds are repayable as follows:
FINANCIAL
m loans (Note 21)
COMMENTARY Term loans (Note 21) 1,302 528 1,302 528 Within one year (Note 19) Within one year (Note 19) 815 930 815 9
se liabilities (Note 22) Lease liabilities (Note 22) 5,460 7,572 5,460 7,572 Between 2 and 5 years Between 2 and 5 years 2,915 3,261 2,915 3,
| DNATA
DNATA
k overdraft (Note 32)
| FINANCIAL
FINANCIAL Bank overdraft (Note 32) 29 - 29 - After 5 years After 5 years 1,091 1,560 1,091 1,
| COMMENTARY
COMMENTARY
7,606 9,030 7,606 9,030 Total over one year (Note 19)
Total over one year (Note 19) 4,006 4,821 4,006 4,8
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED 53,039 51,101 53,039 51,101
| FINANCIAL Bonds are fixed interest rate bonds
Bonds and
are fixed
are denominated
interest rate in
bonds
USD.and are denominated in USD.
rowings and lease
FINANCIAL
| STATEMENTS liabilities
Borrowings
are denominated
and lease
in liabilities
the are denominated in the
STATEMENTS
owing currencies: following currencies: The fair value of the bonds isThe
AEDfair
4,812
value
m of
(2018:
the bonds
AED 5,740
is AED
m) 4,812
basedmon
(2018:
listedAED
prices
5,740 m) based on listed p
DNATA
DollarCONSOLIDATED US Dollar 49,427 47,599 49,427 47,599 and falls into level 1 of the fair
andvalue
fallshierarchy.
into level 1 of the fair value hierarchy.
FINANCIAL
E Dirham
STATEMENTS UAE Dirham 3,139 3,502 3,139 3,502
o Euro 444 - 444 -
ADDITIONAL
nd Sterling
INFORMATION Pound Sterling 29 - 29 -

effective interest rate per

The
annum
effective
on lease
interest
liabilities
rate per was
annum
3.8% on
(2018:
lease
3.1%),
liabilities
term was 3.8% (2018: 3.1%), term
ns was 4.6% (2018: 3.2%) and
loans
bonds
was 4.6%
was 4.5%
(2018:
(2018:
3.2%)4.3%).
and bonds was 4.5% (2018: 4.3%).

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 THE EMIRATES GROUP
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2018-19

Term loans 21. Term loans 22. Lease liabilities 22. Lease liabilities
OVERVIEW 2019 2018 2019 2018
AED m AED m AED m AED m Finance leases Finance leases
EMIRATES
nce brought forward Balance brought forward 5,041 5,031 5,041 5,031 2019 2018 2019 20
tionsDNATA
during the year Additions during the year 8,268 3,381 8,268 3,381 AED m AED m AED m AED
ayments during the year Repayments during the year (4,577) (3,371) (4,577) (3,371) Balance brought forward Balance brought forward 40,374 41,874 40,374 41,8
GROUP
nce carried forward Balance carried forward 8,732 5,041 8,732 5,041 Additions during the year Additions during the year 8,633 5,008 8,633 5,0
Transaction
FINANCIALcosts Less: Transaction costs (53) (65) (53) (65) Repayments during the year Repayments during the year (9,490) (6,508) (9,490) (6,5
INFORMATION
8,679 4,976 8,679 4,976 Currency translation differences
Currency translation differences (7) - (7)
ns areEMIRATES
repayable as follows:
Loans are repayable as follows: Balance carried forward Balance carried forward 39,510 40,374 39,510 40,3
FINANCIAL
hin one year (Note
COMMENTARY 19) Within one year (Note 19) 1,302 528 1,302 528
ween| 2DNATA
and 5 years
DNATA
Between 2 and 5 years 3,813 1,832 3,813 1,832 Gross lease liabilities: Gross lease liabilities:
| FINANCIAL
r 5 years
FINANCIAL After 5 years 3,564 2,616 3,564 2,616
| COMMENTARY
COMMENTARY
Within one year Within one year 6,913 8,793 6,913 8,7
al over one year (Note 19)
Total over one year (Note 19) 7,377 4,448 7,377 4,448 Between 2 and 5 years Between 2 and 5 years 22,822 22,415 22,822 22,4
| EMIRATES
EMIRATES
ns are denominated in theLoans
| CONSOLIDATED
CONSOLIDATED following
are denominated
currencies: in the following currencies: After 5 years After 5 years 17,244 15,236 17,244 15,2
| FINANCIAL
FINANCIAL
Dollar| STATEMENTS
STATEMENTS US Dollar 8,666 4,686 8,666 4,686 46,979 46,444 46,979 46,4
Dirham
DNATA
UAE Dirham 13 290 13 290 Future interest Future interest (7,469) (6,070) (7,469) (6,0
CONSOLIDATED
FINANCIAL
Present value of finance lease
Present
liabilities
value of finance lease liabilities
39,510 40,374 39,510 40,3
tractual repricing
STATEMENTS dates Contractual
are set at repricing
three to dates
six month
are set
intervals.
at three
Term
to loans
six month intervals. Term loans The present value of finance lease
The present
liabilities
value
is of finance lease liabilities is
unting to AED 6,213 m (2018:
amounting
AED 4,751
to AED
m) 6,213
are secured
m (2018:
on AED
the related
4,751 m)
aircraft
are secured
and on the related aircraft and repayable as follows: repayable as follows:
ADDITIONAL
aft engines.
INFORMATION aircraft engines.
Within one year (Note 19) Within one year (Note 19) 5,460 7,572 5,460 7,5
m loans include AED 803Term
m (2018:
loans Nil)
include
provided
AED 803
by financial
m (2018:institutions
Nil) provided
under
by financial institutions under Between 2 and 5 years Between 2 and 5 years 19,092 19,168 19,092 19,1
mon control on normal commercial
common control
terms.on normal commercial terms. After 5 years After 5 years 14,958 13,634 14,958 13,6
Total over one year (Note 19)
Total over one year (Note 19) 34,050 32,802 34,050 32,8
fair value of the term loans
Theamounts
fair valuetoofAED
the8,729
term m
loans
(2018:
amounts
AED 5,016
to AED
m).8,729
The fair
m (2018: AED 5,016 m). The fair
e is determined by discounting
value is projected
determined
cash
byflows
discounting
using the
projected
interestcash
rate flows
yield using the interest rate yield The present value of finance lease
The present
liabilities
value
is of finance lease liabilities is
e for the remaining termcurve
to maturities
for the remaining
and currencies
term to
adjusted
maturities
for credit
and currencies
spread. adjusted for credit spread. denominated in the followingdenominated
currencies: in the following currencies:
fair value of the term loans
Thefall
fair
into
value
level
of2the
of the
termfair
loans
value
fallhierarchy.
into level 2 of the fair value hierarchy. US Dollar US Dollar 35,940 37,162 35,940 37,1
UAE Dirham UAE Dirham 3,126 3,212 3,126 3,2
Euro Euro 444 - 444

Lease liabilities amounting toLease

AED 37,995
liabilities
m amounting
(2018: AED to
38,978
AED 37,995
m) are secured
m (2018:on
AED
the38,978 m) are secured on
related aircraft and aircraft engines.
related aircraft and aircraft engines.

133
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Lease liabilities (continued)

22. Lease liabilities (continued) 23. Provisions 23. Provisions
OVERVIEW 2019 2018 2019 20
fair value of lease liabilities
Theamounts
fair valuetoofAED
lease
39,603
liabilities
m (2018:
amounts
AED to
39,738
AED 39,603
m). Them (2018: AED 39,738 m). The AED m AED m AED m AED
EMIRATES
value is determined by discounting
fair value is projected
determinedcash
by flows
discounting
using the
projected
interestcash
rateflows using the interest rate Non-current Non-current
d curve for the remaining
yield
term
curve
to maturities
for the remaining
and currencies
term toadjusted
maturities
for and
credit
currencies adjusted for credit
DNATA Retirement benefit obligations
Retirement
(Note 24)benefit obligations (Note 1,572
24) 1,418 1,572 1,4
ad. The fair value of leasespread.
liabilities
Thefall
fair
into
value
level
of2lease
of the
liabilities
fair value
fallhierarchy.
into level 2 of the fair value hierarchy.
Provision for aircraft return conditions
Provision for
(Note
aircraft
25) return conditions2,509
(Note 25) 2,649 2,509 2,6
GROUP
e lease agreements provide
Somefor
lease
variable
agreements
lease payments
provide for
to the
variable
extent
lease
thatpayments
the to the extent that the 4,081 4,067 4,081 4,0
est portion is linked to market
FINANCIAL interest
interest
portion
rates,
is linked
normally
to market
the LIBOR.
interest rates, normally the LIBOR. Current Current
INFORMATION
rating leases Operating leases Provision for aircraft return conditions
Provision for
(Note
aircraft
25) return conditions (Note
678 25) 687 678 6
EMIRATES
2019 2018 2019 2018 678 687 678 6
FINANCIAL
COMMENTARY AED m AED m AED m AED m 4,759 4,754 4,759 4,7

re minimum
DNATA lease payments
| DNATA Future
areminimum
as follows:lease payments are as follows:
| FINANCIAL
FINANCIAL
aft fleet
| COMMENTARY
COMMENTARY Aircraft fleet 71,987 82,449 71,987 82,449
ers | EMIRATES
EMIRATES Others 3,018 2,995 3,018 2,995
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL 75,005 85,444 75,005 85,444
| STATEMENTS
STATEMENTS

in one year
DNATA Within one year 11,178 11,845 11,178 11,845
CONSOLIDATED
ween 2FINANCIAL
and 5 years Between 2 and 5 years 37,499 39,962 37,499 39,962
STATEMENTS
r 5 years After 5 years 26,328 33,637 26,328 33,637
ADDITIONAL
INFORMATION 75,005 85,444 75,005 85,444

future minimum lease payments

The future
include
minimum
AED 4,433
lease payments
m (2018: AED
include
5,232
AED
m) 4,433
related
m (2018: AED 5,232 m) related
ompanies under common
to companies
control. Such
under
payments
commonarecontrol.
on normal
Suchcommercial
payments are on normal commercial
s. terms.

ates is entitled to extendEmirates

certain aircraft
is entitled
leases
to extend
for a further
certainperiod
aircraftofleases
one to
forsixa further period of one to six
s at the end of the initial years
lease period.
at the end of the initial lease period.

134
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Retirement benefit obligations

24. Retirement benefit obligations (i) Funded scheme (i) Funded scheme
OVERVIEW

ccordance with the provisions

In accordance
of IAS 19,with
management
the provisions
has carried
of IAS 19,
outmanagement
an exercise has carried out an exercise Senior employees based in the
Senior
UAE employees
participate based
in a defined
in the benefit
UAE participate
providentinscheme
a defined benefit provident sche
EMIRATES
ssess the present value to
of assess
its defined
the present
benefit value
obligations
of its at
defined
31 March
benefit
2019obligations
in at 31 March 2019 in to which Emirates contributes
toawhich
specified
Emirates
percentage
contributes
of basic
a specified
salary based
percentage
upon the
of basic salary based upon
ect ofDNATA
employees' end ofrespect
service of
benefits
employees'
payable
endunder
of service
relevant
benefits
local payable
regulations
under relevant local regulations employee’s grade and duration
employee’s
of service.
grade
Amounts
and duration
contributed
of service.
are invested
Amounts
in contributed
a are invested i
contractual arrangements.
and The
contractual
assessment
arrangements.
assumed expected
The assessment
salary increases
assumed expected salary increases trustee administered scheme
trustee
and administered
accumulate along
schemewith
andreturns
accumulate
earnedalong
on with returns earned
agingGROUP
3.0% (2018: 3.0%) and
averaging
a discount
3.0%rate
(2018:
of 3.75%
3.0%) and
(2018:
a discount
4.0%) perrate
annum.
of 3.75%
The (2018: 4.0%) per annum. The investments. Contributions investments.
are made onContributions
a monthly are
basismade
irrespective
on a monthly
of fund basis irrespective of f
ent values of the defined
present
benefitvalues
obligations
of the at
defined
31 March
benefit
2019obligations
were computed
at 31 March 2019 were computed performance and are not pooled,
performance
but areand
separately
are not identifiable
pooled, butand
areattributable
separately identifiable
to and attributable
g theFINANCIAL
actuarial assumptions
using
set the
outactuarial
above. assumptions set out above. each participant. The fund comprises
each participant.
a diverseThe
mixfund
of funds
comprises
and investment
a diverse mix
decisions
of funds and investment decisi
INFORMATION
are controlled directly by the are
participating
controlledemployees.
directly by the participating employees.
liabilities recognised in the
The
consolidated
liabilities recognised
statementinofthe
financial
consolidated
position
statement
are: of financial position are:
EMIRATES
FINANCIAL
Benefits receivable under theBenefits
provident
receivable
scheme under
are subject
the provident
to vestingscheme
rules, which
are subject
are to vesting rules, which
COMMENTARY 2019 2018 2019 2018
AED m AED m AED m AED m dependent upon a participating
dependent
employee's
upon alength
participating
of service.
employee's
If at thelength
time an
of service. If at the time
| DNATA
DNATA
| FINANCIAL
FINANCIAL
employee leaves employment,
employee
the accumulated
leaves employment,
vested amount,
the accumulated
including investment
vested amount, including investm
ded |scheme Funded scheme
COMMENTARY
COMMENTARY returns, is less than the end of
returns,
service
is benefits
less thanthat
the would
end ofhave
service
been
benefits
payablethat
to would
that have been payable to
ent value of defined benefit
Present
obligations
value of defined benefit obligations
2,703 2,581 2,703 2,581 employee under relevant local
employee
regulations,
under
Emirates
relevant
pays
local
theregulations,
shortfall amount
Emirates
directly
pays the shortfall amount dire
| EMIRATES
EMIRATES
Fair| CONSOLIDATED
value of plan assets Less: Fair value of plan assets
CONSOLIDATED (2,699) (2,577) (2,699) (2,577) to the employee. However, to
if the
the accumulated
employee. However,
vested amount
if the accumulated
exceeds the vested
end ofamount exceeds the end
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS 4 4 4 4 service benefits that would have
service
been
benefits
payable
thattowould
an employee
have been
under
payable
relevant
to an
local
employee under relevant lo
unded scheme Unfunded scheme regulations, the employee receives
regulations,
either the
seventy
employee
five orreceives
one hundred
either percent
seventy five
of their
or one hundred percent of t
DNATA
CONSOLIDATED fund balance depending on fund
their balance
length ofdepending
service. Vested
on their
assets
length
of the
of service.
schemeVested
are assets of the scheme
ent value of defined
FINANCIAL benefit
Present
obligations
value of defined benefit obligations
1,568 1,414 1,568 1,414
STATEMENTS
not available to Emirates or itsnot
creditors
available
in to
anyEmirates
circumstances.
or its creditors in any circumstances.

visionADDITIONAL
recognised in the Provision
consolidated
recognised in the consolidated The liability of AED 4 m (2018:The
AEDliability
4 m) represents
of AED 4 mthe
(2018:
amount
AED that
4 m)will
represents
not be settled
the amount that will not be set
ement of financial position
INFORMATION
statement of financial position 1,572 1,418 1,572 1,418 from plan assets and is calculated
from plan
as the
assets
excess
andofis the
calculated
presentas
value
the of
excess
the defined
of the present value of the defi
benefit obligation for an individual
benefit obligation
employee over
for an
theindividual
fair valueemployee
of the employee's
over the fair value of the employ
above liability is presented
The as
above
a non-current
liability is presented
provision within
as a non-current
the consolidated
provision within the consolidated
plan assets at the end of the reporting
plan assets
period.
at the end of the reporting period.
ement of financial position
statement
as Emirates
of financial
expects position
to settleasthis
Emirates
liabilityexpects
over a to
long
settle this liability over a long
period. term period. The movement in the fair value
Theofmovement
the plan assets
in theisfair
as follows:
value of the plan assets is as follows:

2019 2018 2019 20

AED m AED m AED m AED

Balance brought forward Balance brought forward 2,577 2,309 2,577 2,3
Contributions received Contributions received 308 300 308 3
Benefits paid Benefits paid (201) (194) (201) (1
Change in fair value Change in fair value 15 162 15 1
Balance carried forward Balance carried forward 2,699 2,577 2,699 2,5

135
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Retirement benefit obligations

24. Retirement
(continued)
benefit obligations (continued) (iii) Defined contribution plans
(iii) Defined contribution plans
OVERVIEW
Emirates pays fixed contributions to certain
Emirates defined
pays fixed contribution
contributions plans and
to certain has no
defined contribution plans and ha
tributions received include
Contributions
the transferreceived
of accumulated
include the
benefits
transfer
fromof unfunded
accumulated benefits from unfunded legal or constructive obligation
legaltoorpay further contributions
constructive obligation toto pay
settle the benefits
further contributions to settle the ben
EMIRATES
emes. Emirates expects toschemes.
contribute
Emirates
approximately
expects to
AEDcontribute
307 m forapproximately
existing plan AED 307 m for existing plan relating to employees' servicerelating to employees'
in the current service
and prior in the current and prior periods.
periods.
mbers during the year ending
members
31 March
during
2020.
the year ending 31 March 2020.
DNATA
The total amount recognisedThe totalconsolidated
in the amount recognised in the consolidated
income statement in respect income
of all statement in respect o
uarial gains and losses and
Actuarial
the expected
gains and
return
losses
on plan
and the
assets
expected
are notreturn
calculated
on plan assets are not calculated
GROUP post-employment
post-employment benefit plans is as follows: benefit plans is as follows:
en that investment decisions
given
relating
that investment
to plan assets
decisions
are under
relating
the direct
to plancontrol
assets of
are under the direct control of
2019 2018 2019 2
icipating employees. participating employees.
FINANCIAL AED m AED m AED m AE
INFORMATION
Unfunded schemes (ii) Unfunded schemes Defined benefit plan Defined benefit plan
EMIRATES
FINANCIAL Funded scheme Funded scheme
of service benefits
COMMENTARY for employees
End of service
who dobenefits
not participate
for employees
in thewho
provident
do notscheme
participate in the provident scheme
Contributions expensed Contributions expensed 297 296 297
other defined contributionor
plans
other
follow
defined
relevant
contribution
local regulations,
plans follow
which
relevant
are mainly
local regulations, which are mainly
| DNATA
DNATA Netofchange
Net change in the present value definedinbenefit
the present value of defined benefit
ed on periods of cumulative
| FINANCIAL
FINANCIAL basedservice
on periods
and levels
of cumulative
of employees’
service
final
andbasic
levels
salaries.
of employees’ final basic salaries.
| COMMENTARY
COMMENTARY obligations over plan assets obligations over plan assets - (3) -
liability recognised in the
Theconsolidated
liability recognised
statement
in the
of financial
consolidated
position
statement
is the of financial position is the
297 293 297
sent | value of the defined benefit
EMIRATES
EMIRATES presentobligation
value of the
at the
defined
end of
benefit
the reporting
obligation
period.
at the end of the reporting period.
| CONSOLIDATED
CONSOLIDATED Unfunded scheme Unfunded scheme
| FINANCIAL
FINANCIAL
movement in the definedThe
| STATEMENTS benefit
movement
obligation
in the
is as
defined
follows:
benefit obligation is as follows:
STATEMENTS Current service cost Current service cost 169 172 169
DNATA Interest cost Interest cost 57 55 57
CONSOLIDATED
2019 2018 2019 2018
FINANCIAL AED m AED m AED m AED m 226 227 226
STATEMENTS
Defined contribution plan Defined contribution plan
ance brought forward Balance brought forward 1,414 1,290 1,414 1,290
ADDITIONAL Contributions expensed Contributions expensed 219 212 219
rent service cost
INFORMATION Current service cost 169 172 169 172
rest cost Interest cost 57 55 57 55
Recognised in the consolidated income statement
Recognised 742statement732
in the consolidated income 742
measurement Remeasurement
anges in experience / demographic
- changes assumptions
in experience / demographic assumptions
10 (23) 10 (23)
anges in financial assumptions
- changes in financial assumptions 50 29 50 29
ments made during the year
Payments made during the year (132) (109) (132) (109)
ance carried forward Balance carried forward 1,568 1,414 1,568 1,414

ments made during the year

Payments
includemade
transfer
during
of accumulated
the year include
benefits
transfer
to Emirates’
of accumulated benefits to Emirates’
ded scheme. funded scheme.

136
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

24. Retirement benefit obligations (continued) 25. Provision

25. Provision for aircraft return for aircraft return conditions
conditions
Retirement benefit obligations (continued)
OVERVIEW

Thescheme
sensitivity of the unfunded sensitivity of the unfunded
to changes schemeassumptions
in the principal to changes in
is the
set principal assumptions is set 2019 2018 2019 20
EMIRATES
below: out below: AED m AED m AED m AED
umption Assumption Change Effect on Change Effect on
DNATA Balance brought forward Balance brought forward 3,336 3,125 3,336 3,1
unfunded unfunded
Charge for the year Charge for the year 549 714 549 7
GROUP scheme scheme
Unwinding of discount Unwinding of discount 165 159 165 1
AED m AED m
FINANCIAL
Utilised
Utilised on return of aircraft & aircraftonengines
return of aircraft & aircraft engines
(662) (459) (662) (4
+ 0.5% (92) + 0.5% (92)
INFORMATION
ount rate Discount rate Unutilised amounts reversedUnutilised amounts reversed (201) (203) (201) (2
- 0.5% 103 - 0.5% 103
EMIRATES Balance carried forward Balance carried forward 3,187 3,336 3,187 3,3
FINANCIAL + 0.5% 103 + 0.5% 103
ectedCOMMENTARY
salary increases Expected salary increases The provision is expected to The provision
be used is expected to be used as follows:
as follows:
- 0.5% (93) - 0.5% (93)
| DNATA
DNATA
Within one year (Note 23) Within one year (Note 23) 678 687 678 6
above sensitivity analysisThe
| FINANCIAL
FINANCIAL aboveon
is based sensitivity
a change analysis is based onwhile
in an assumption a change in an
holding allassumption while holding all Over one year (Note 23) Over one year (Note 23) 2,509 2,649 2,509 2,6
| COMMENTARY
COMMENTARY
er assumptions constant. other assumptions
In practice, constant.
this is unlikely toInoccur,
practice,
and this is unlikely
changes in someto occur, and changes in some
of the assumptions may be Unwinding
Unwinding of discount is included of discount
in other is included
finance costs in other finance costs (Note 8).
(Note 8).
he assumptions
| EMIRATES
EMIRATES may be correlated. In calculating thecorrelated. In calculating
above sensitivity analysis,the
theabove sensitivity analysis, the
| CONSOLIDATED
CONSOLIDATED
sent | FINANCIAL present
value of the defined
FINANCIAL valueobligation
benefit of the defined
has beenbenefit obligation
calculated using has
the been calculated using the
| STATEMENTS projected unit credit method at the end of the reporting period.
STATEMENTS
ected unit credit method at the end of the reporting period. 26. Deferred revenue 26. Deferred revenue

Theofweighted average duration ofyears

the unfunded 2019 2018 2019 20
(2018: 14 scheme
years). is 15 years (2018: 14 years).
DNATA
weighted average
CONSOLIDATED duration the unfunded scheme is 15
FINANCIAL AED m AED m AED m AED
ough its defined benefit Through
STATEMENTS its defined
plans Emirates benefittoplans
is exposed Emirates
a number is exposed
of risks, to a number of risks, the most
the most
Balance brought forward Balance brought forward 2,243 2,465 2,243 2,4
ificant of which are significant
detailed below: of which are detailed below:
ADDITIONAL
Additions during the year Additions during the year 1,577 1,558 1,577 1,5
INFORMATION
Change in discount rate:a)Retirement
Change in benefit
discountobligations
rate: Retirement benefitdue
will increase obligations
to a will increase due to a Recognised during the year Recognised during the year (1,811) (1,780) (1,811) (1,7
decrease
rease in market yields of high in market
quality yields
corporate of high quality corporate bonds.
bonds. Balance carried forward 2,009 2,2
Balance carried forward 2,009 2,243

Expected salary increases:b)The

Expected
presentsalary
valueincreases: The present
of the defined benefitvalue of the isdefined benefit obligation is
obligation
calculated
ulated by reference to the by reference
future salaries of planto the future salaries
participants. As such,ofanplan participants. As such, an increase
increase Deferred revenue relates toDeferred revenue
the frequent flyerrelates to the and
programme frequent flyer programme
represents the fair and represents the
in the salary
he salary of the plan participants of the
above the plan participants
expected rate of above the expected
salary increases will rate of salary increases will value of outstanding awardvalue of Revenue
credits. outstanding award credits.
is recognised when Revenue
Emiratesis fulfils
recognised
its when Emirates fulfils
increase the retirement benefit obligations. obligations
obligations by supplying free by supplying
or discounted goods orfree or discounted
services goods or services
on the redemption of on the redemption
ease the retirement benefit obligations.
the award credits. the award credits.

137
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Deferred credits 27. Deferred credits 29. Trade and other payables
29. Trade and other payables
OVERVIEW 2019 2018 2019 2018 2019 2018 2019 2
AED m AED m AED m AED m AED m AED m AED m AE
EMIRATES
ance brought forward Balance brought forward 2,934 2,480 2,934 2,480 Trade payables and accruals Trade payables and accruals 14,031 15,095 14,031 15,
itionsDNATA
during the year Additions during the year 149 746 149 746 Passenger and cargo sales in Passenger
advance and cargo sales in advance11,973 12,349 11,973 12,
ognised during the year Recognised during the year (324) (292) (324) (292) Related parties (Note 36) Related parties (Note 36) 946 982 946
GROUP
ance carried forward Balance carried forward 2,759 2,934 2,759 2,934 Dividend payable Dividend payable - 1,000 - 1,
erredFINANCIAL
credits will be recognised
Deferred
as follows:
credits will be recognised as follows: 26,950 29,426 26,950 29,4
INFORMATION
hin one year Within one year 322 313 322 313 Less: Payables over one year Less: Payables over one year (155) (123) (155) (
er oneEMIRATES
year Over one year 2,437 2,621 2,437 2,621 26,795 29,303 26,795 29,3
FINANCIAL
COMMENTARY
The carrying amounts of trade
Theand
carrying
otheramounts
payablesof(excluding
trade andpassenger
other payables
and cargo
(excluding passenger and ca
Deferred
DNATAincome tax
| DNATA 28. Deferred income tax sales in advance) approximate
sales
their
in fair
advance)
valuesapproximate
which fall into
their
level
fair3 values
of the which
fair value
fall into level 3 of the fair v
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY hierarchy. Any change to the hierarchy.
valuation method
Any change
will not
to the
result
valuation
in a significant
method will
change
not result
to in a significant chang
erred tax assets and liabilities
Deferred
are offset
tax assets
whenand
there
liabilities
is a legally
are offset
enforceable
when there
right to
is a legally enforceable right to the fair value of these payables.
the fair value of these payables.
| EMIRATES
et current tax assets against
EMIRATES
| CONSOLIDATED
CONSOLIDATED
offsetcurrent
currenttax
taxliabilities
assets against
and when
current
the tax
deferred
liabilities
taxes
and when the deferred taxes
te to| FINANCIAL
the same income taxrelate
FINANCIAL authority.
to theThe
same
offset
income
amounts
tax authority.
are as follows:
The offset amounts are as follows: Passenger and cargo sales inPassenger
advance as
and
at cargo
1 Aprilsales
2018in has
advance
been as
recognised
at 1 Aprilin2018
full has been recognised in
| STATEMENTS
STATEMENTS
during the year. during the year.
DNATA
2019 2018 2019 2018
CONSOLIDATED AED m AED m AED m AED m 30. Guarantees 30. Guarantees
FINANCIAL
erredSTATEMENTS
income tax asset Deferred income tax asset 13 11 13 11 2019 2018 2019 2
AED m AED m AED m AE
erredADDITIONAL
income tax liability Deferred income tax liability (3) (4) (3) (4)
INFORMATION Guarantees and letters of credit
Guarantees
providedand
by banks
lettersinofthe
credit provided by banks in the
10 7 10 7
normal course of business normal course of business 815 464 815
movements in deferred taxes
The movements
are as follows:
in deferred taxes are as follows:
ance brought forward Balance brought forward 7 5 7 5
Guarantees and letters of credit
Guarantees
include and
AEDletters
197 mof(2018:
creditAED
include
136 AED
m) provided
197 m (2018:
by AED 136 m) provided
consolidation settlementsTax consolidation settlements - 2 - 2
companies under common control
companies
on normal
undercommercial
common control
terms.on normal commercial terms.
dited to the consolidated Credited
income statement
to the consolidated
(Note 9) income statement
2 (Note 9)- 2 -
rency translation differences
Currency translation differences 1 - 1 -
ance carried forward Balance carried forward 10 7 10 7

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Commitments 31. Commitments 32. Short term bank deposits

32.and
Short
cash
term
andbank
cash deposits
equivalents
and cash and cash equivalents
OVERVIEW 2019 2018 2019 20
tal commitments Capital commitments AED m AED m AED m AED
EMIRATES
2019 2018 2019 2018 Bank deposits Bank deposits 14,413 18,138 14,413 18,1
DNATA AED m AED m AED m AED m Cash and bank Cash and bank 2,624 2,282 2,624 2,2
aft (contracted and not contracted)
Aircraft (contracted and not contracted)
187,035 242,713 187,035 242,713 Cash and bank balances Cash and bank balances 17,037 20,420 17,037 20,4
GROUP
-aircraft Non-aircraft 592 1,076 592 1,076 Less: Short term bank deposits
Less:
- over
Short
3 months
term bank
original
deposits - over 3 months original
t ventures
FINANCIAL Joint ventures 4 14 4 14 maturity maturity (11,974) (14,745) (11,974) (14,7
INFORMATION Cash and cash equivalents as
Cash
perand
the cash
consolidated
equivalents as per the consolidated
187,631 243,803 187,631 243,803
statement of financial position
statement of financial position 5,063 5,675 5,063 5,6
EMIRATES
mitments have been
FINANCIAL entered
Commitments
into forhave
the purchase
been entered
of aircraft
into for
for the
delivery
purchase
as of aircraft for delivery as Bank overdraft (Note 19) Bank overdraft (Note 19) (29) - (29)
ws: COMMENTARY
follows:
Cash and cash equivalents as
Cash
perand
the cash
consolidated
equivalents as per the consolidated
ncial year Financial year Aircraft Aircraft
| DNATA
DNATA statement of cash flows statement of cash flows 5,034 5,675 5,034 5,6
| FINANCIAL
FINANCIAL
9-20| COMMENTARY
COMMENTARY 2019-20 6 6
ond 2019-20
| EMIRATES
EMIRATES Beyond 2019-20 228 228 Cash and bank balances earned
Cash an
andeffective
bank balances
interest earned
rate of an
3.4%
effective
(2018: interest
3.0%) per
rate of 3.4% (2018: 3.0%)
| CONSOLIDATED
CONSOLIDATED annum. annum.
| FINANCIAL
FINANCIAL
he event
| that delivery ofIncertain
STATEMENTS
STATEMENTS the event
aircraft
thatare
delivery
not taken,
of certain
penalties
aircraft
are are
payable
not taken,
by penalties are payable by
Cash and bank balances include
Cash and
AED bank
11,338
balances
m (2018:
include
AED AED
12,348
11,338
m) held
m (2018:
with AED 12,348 m) held w
ates to the extent of AEDEmirates
257 m (2018:
to theAED
extent
1,416
of AED
m). 257 m (2018: AED 1,416 m).
DNATA
CONSOLIDATED
companies under common control.
companies under common control.
FINANCIAL
rational commitments
STATEMENTS Operational commitments
33. Cash outflow on property,
33. plant
Cash and
outflow
equipment
on property, plant and equipment
ADDITIONAL
2019 2018 2019 2018
INFORMATION AED m AED m AED m AED m
For the purposes of the consolidated
For the purposes
statement
of the
of cash
consolidated
flows, cash
statement
outflowofoncash flows, cash outflow
s and marketing Sales and marketing 3,055 4,249 3,055 4,249 property, plant and equipment
property,
is analysed
plantasand
follows:
equipment is analysed as follows:

2019 2018 2019 20

AED m AED m AED m AED

Additions to property, plant and

Additions
equipment
to property,
(Note 11)
plant and equipment
13,178 (Note 11)
8,287 13,178 8,2
Less: Assets acquired under finance
Less: Assets
leasesacquired
(Note 22)
under finance leases
(8,633)
(Note 22)(5,008) (8,633) (5,0
4,545 3,279 4,545 3,2

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Derivative financial instruments The notional principal amounts

34. Derivative financial instruments Theoutstanding are:
notional principal amounts outstanding are:
OVERVIEW 2019 2018 2019 20
cription Description 2019 2018 AED m AED m
2019 2018 AED m AED
EMIRATES
Term AED m Term
Term AED mm
AED Term AED m Interest rate contracts Interest rate contracts 7,238 5,432 7,238 5,43
h flowDNATA
hedge Cash flow hedge Currency contracts 1,203 929
Currency contracts 1,203 92
-current assets Non-current assets
est rate swaps
GROUP
2021-2028 24 2020-2028 60 24 The notional principal amounts
Interest rate swaps 2021-2028 2020-2028 60 Theoutstanding includeamounts
notional principal AED 2,413 m (2018: AED
outstanding 2,012
include m) 2,413 m (2018: AED 2,012
AED
24 60 24 against derivatives entered with companies
against under
derivatives common
entered withcontrol.
companies under common control.
FINANCIAL 60
ent assets
INFORMATION
Current assets The maximum exposure to credit risk at the
The maximum reporting
exposure to date
creditis risk
the at
fairthe
value of the date is the fair value of t
reporting
est rate swaps Interest rate swaps 6 - 6 -
EMIRATES derivative assets in the consolidated statement of financial position.
derivative assets in the consolidated statement of financial position.
ency FINANCIAL
forwards
COMMENTARY Currency forwards 5 9 5 9
11 9 11 9
| DNATA
DNATA
h flow hedge
| FINANCIAL
FINANCIAL
Cash flow hedge
| COMMENTARY
COMMENTARY
-current liabilities Non-current liabilities
| EMIRATES
EMIRATES
est rate swaps
| CONSOLIDATED
CONSOLIDATED
2021-2028
Interest rate swaps (81) 2020-2023
2021-2028 (26)(81) 2020-2023 (26)
| FINANCIAL
FINANCIAL (81) (26)(81) (26)
| STATEMENTS
STATEMENTS
ent liabilities Current liabilities
est rate swaps
DNATA
CONSOLIDATED Interest rate swaps (20) (35)(20) (35)
FINANCIAL
STATEMENTS
(20) (35)(20) (35)

ADDITIONAL
rest rate swaps
INFORMATION
Interest rate swaps 2019 2018 2019 2018
AED m AED m AED m AED m
nge in fair value of outstanding
Changehedging instruments
in fair value of outstanding hedging instruments
e 1 April since 1 April (102) 51 (102) 51
nge in value of hedged item used to determine hedge
Change in value of hedged item used to determine hedge
ctiveness effectiveness 102 (51) 102 (51)

ge ratio Hedge ratio 1:1 1:1 1:1 1:1

ghted average hedged rate for the year
Weighted average hedged rate for the2.8%
year 2.9% 2.8% 2.9%

140
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35. Classification of financial instruments

OVERVIEW

The accounting policies for financial instruments have been applied to the line items below:
EMIRATES

DNATA Financial Financial

assets at Derivative liabilities at
GROUP amortised financial amortised
Description cost instruments cost Total
FINANCIAL AED m AED m AED m AED m
INFORMATION
2019
EMIRATES
FINANCIAL
Assets
COMMENTARY Trade and other receivables (excluding prepayments) 7,993 - - 7,993
| DNATA
DNATA Derivative financial instruments - 35 - 35
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY Short term bank deposits 11,974 - - 11,974
Cash and cash equivalents 5,063 - - 5,063
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED Total 25,030 35 - 25,065
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS

DNATA Liabilities
CONSOLIDATED
FINANCIAL
Borrowings and lease liabilities - - 53,039 53,039
STATEMENTS
Provision for aircraft return conditions - - 3,187 3,187
ADDITIONAL Trade and other payables (excluding passenger and cargo sales in advance) - - 14,977 14,977
INFORMATION
Derivative financial instruments - 101 - 101
Total - 101 71,203 71,304

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35. Classification of financial instruments (continued)

OVERVIEW

EMIRATES
Financial
Derivative liabilities at
DNATA
Loans and financial amortised
Description receivables instruments cost Total
GROUP
AED m AED m AED m AED m
FINANCIAL 2018
INFORMATION
Assets
EMIRATES Trade and other receivables (excluding prepayments) 7,859 - - 7,859
FINANCIAL
COMMENTARY Derivative financial instruments - 69 - 69

| DNATA
DNATA Short term bank deposits 14,745 - - 14,745
| FINANCIAL
FINANCIAL
| COMMENTARY
COMMENTARY
Cash and cash equivalents 5,675 - - 5,675
Total 28,279 69 - 28,348
| EMIRATES
EMIRATES
| CONSOLIDATED
CONSOLIDATED
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS Liabilities
Borrowings and lease liabilities - - 51,101 51,101
DNATA
CONSOLIDATED Provision for aircraft return conditions - - 3,336 3,336
FINANCIAL
STATEMENTS Trade and other payables (excluding passenger and cargo sales in advance) - - 17,077 17,077
ADDITIONAL Derivative financial instruments - 61 - 61
INFORMATION
Total - 61 71,514 71,575

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Related party transactions

36. and
Related
balances
party transactions and balances
OVERVIEW
rates transacts with associates,
Emirates joint
transacts
ventures
with and
associates,
companies
joint controlled
ventures and
by companies controlled by 2019 2018 2019 20
rates EMIRATES
and its parent company
Emirates
within
and
theitsscope
parent
ofcompany
its ordinary
within
business
the scope
activities.
of its ordinary business activities. AED m AED m AED m AED

Other transactions: Other transactions:

rates DNATA
and dnata (a company
Emirates
under
and common
dnata (a control)
companyshare
under
central
commoncorporate
control) share central corporate (i) Finance income (i) Finance income
tions such as information
functions
technology,
such asfacilities,
information
human
technology,
resources,facilities,
finance, human resources, finance,
Companies under common control
Companies
(Noteunder
8) common control (Note
305
8) 214 305 2
sury, GROUP
cash management,treasury,
legal and
cash
other
management,
functions. legal
Whereand
such
other
functions
functions.
are Where such functions are
Joint ventures (Note 8) Joint ventures (Note 8) 1 2 1
ed, the costs are allocated
shared,
between
the Emirates
costs areand
allocated
dnata between
based onEmirates
activity levels.
and dnata based on activity levels.
FINANCIAL 306 216 306 2
INFORMATION
er than these shared service
Otherarrangements,
than these shared
the following
service arrangements,
transactions have
the taken
following transactions have taken
e on EMIRATES
an arm's length basis.
place on an arm's length basis. (ii) Finance cost (ii) Finance cost
FINANCIAL
COMMENTARY 2019 2018 2019 2018 Companies under common control
Companies
(Noteunder
8) common control (Note10
8) - 10

| DNATA
DNATA AED m AED m AED m AED m
| FINANCIAL
FINANCIAL
ding| transactions:
COMMENTARY
COMMENTARY Trading transactions: (iii) Compensation to key management
(iii) Compensation
personnel
to key management personnel

ale |of goods and services

(i) Sale of goods and services Salaries and short term employee
Salaries
benefits
and short term employee benefits
107 156 107 1
EMIRATES
EMIRATES
| CONSOLIDATED
of goods - Companies under
CONSOLIDATED
Sale of
common
goods -control
Companies under common
339 control 309 339 309 Post-employment benefits Post-employment benefits 16 14 16
| FINANCIAL
FINANCIAL
| STATEMENTS
of goods - Joint venturesSale of goods - Joint ventures
STATEMENTS 42 37 42 37 Termination benefits Termination benefits - 1 -

of goods
DNATA- Associates Sale of goods - Associates 59 64 59 64 123 171 123 1
CONSOLIDATED
ices rendered
FINANCIAL - Companies
Services
underrendered
common-control
Companies under common
547 control490 547 490
STATEMENTS Emirates also uses number Emirates
of publicalso
utilities
uses provided
number of
by public
Government
utilities controlled
provided by Government contro
ices rendered - Joint ventures
Services rendered - Joint ventures 15 14 15 14
entities for its operations in entities
Dubai, where
for its these
operations
entities
in are
Dubai,
the where
sole providers
these entities
of theare the sole providers of
quentADDITIONAL
flyer miles sales - Companies
Frequent flyer
undermiles
common
sales - Companies under common
INFORMATION relevant services. This includes
relevant
the supply
services.
of This
electricity,
includes water
the and
supply
airport
of electricity,
services. water and airport servi
trol control 350 304 350 304
Transactions falling in theseTransactions
expense categories
falling in are
these
individually
expense categories
insignificantare
andindividually insignificant
1,352 1,218 1,352 1,218
carried out on an arm's length
carried
basis.out on an arm's length basis.
Purchase of goods and services
(ii) Purchase of goods and services
chase of goods - Companies
Purchase
underof
common
goods -control
Companies under6,973
common control
5,595 6,973 5,595
chase of goods - Associates
Purchase of goods - Associates 229 243 229 243
ices received - Companies
Services
under received
common-control
Companies under common
3,307 control
3,314 3,307 3,314
ices received - Joint ventures
Services received - Joint ventures 11 13 11 13
10,520 9,165 10,520 9,165

143
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ANNUAL REPORT

2018-19

Related party transactions and balances (continued)

36. Related party transactions and balances (continued) Receivables from and loans to companies under common control relate to
2019 2018 Receivables from and loans to companies under common control relate
OVERVIEW 2019 2018 government owned entities, which are unrated. Management is of the opinion that the
AED m AED m government owned entities, which are unrated. Management is of the opinion that
AED m AED m amounts are fully recoverable.
r endEMIRATES
balances amounts are fully recoverable.
Year end balances
eceivables - sale of goods and services 2019 2018
(i) Receivables - sale of goods and services 2019 20
DNATA
AED m AED m
mpanies under common control 101 99 AED m AED
Companies under common control 101 99
t ventures
GROUP 32 31 (iv) Loans and advances to key management personnel
Joint ventures 32 31 (iv) Loans and advances to key management personnel
ociates 13 10 Balance brought forward 6 6
Associates 13 10 Balance brought forward 6
FINANCIAL
eivable within one year 146 140 Additions during the year 8 7
INFORMATION
Receivable within one year 146 140 Additions during the year 8
Repayments during the year (7) (7)
EMIRATES Repayments during the year (7)
Receivables - other transactions
FINANCIAL Balance carried forward 7 6
COMMENTARY (ii) Receivables - other transactions Balance carried forward 7
mpanies under common control 31 74 Receivable within one year 3 3
Companies under common control 31 74 Receivable within one year 3
| DNATA
DNATA
eivable within one year 31 74 Receivable over one year 4 3
| FINANCIAL
FINANCIAL
Receivable within one year 31 74 Receivable over one year 4
| COMMENTARY
COMMENTARY
amounts outstanding at year end are unsecured and will be settled in cash. No
| EMIRATES
EMIRATES The amounts outstanding at year end are unsecured and will be settled in cash. No
airment charge has been recognised during the year in respect of amounts owed
| CONSOLIDATED
CONSOLIDATED 2019 2018
| FINANCIAL
FINANCIAL impairment charge has been recognised during the year in respect of amounts owed 2019 20
elated parties.
| STATEMENTS
STATEMENTS AED m AED m
by related parties. AED m AED
DNATA (v) Payables - purchase of goods and services (Note 29)
(v) Payables - purchase of goods and services (Note 29)
CONSOLIDATED
2019 2018 Companies under common control 918 958
FINANCIAL 2019 2018 Companies under common control 918 9
STATEMENTS AED m AED m Associates 13 6
AED m AED m Associates 13
Other receivables
ADDITIONAL 931 964
INFORMATION (iii) Other receivables 931 9
t ventures 3 9 (vi) Other payables (Note 29)
Joint ventures 3 9 (vi) Other payables (Note 29)
3 9 Companies under common control 15 18
3 9 Companies under common control 15
ement in the loans were as follows: 15 18
Movement in the loans were as follows: 15
nce brought forward 9 13
Balance brought forward 9 13
itions during the year 1 -
Additions during the year 1 -
ayments during the year (7) (4)
Repayments during the year (7) (4)
nce carried forward 3 9
Balance carried forward 3 9
eivable within one year - 4
Receivable within one year - 4
eivable over one year 3 5
Receivable over one year 3 5

144
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37. Financial risk management Emirates manages limits and Emirates

controlsmanages limits and
concentrations of controls concentrations
risk wherever they are of risk wherever they
Financial risk management
OVERVIEW identified.
identified. In the normal course In theEmirates
of business, normal course
places of business,deposits
significant Emirateswith
places significant deposits
ncial risk factors Financial risk factors high financial
credit quality banks Transactions
and financialwithinstitutions.
high credit quality banks and institutions. derivativeTransactions with deriva
EMIRATES counterparties
counterparties are similarly limited are similarly
to high credit limited toinstitutions.
quality financial high creditExposure
quality financial institutions. Expo
Emirates
ates is exposed to a variety is exposed
of financial to a variety
risks which involveofthe
financial risks
analysis, which involve the analysis, evaluation,
evaluation,
to credit risk is also managedtothrough
credit risk is also
regular managed
analysis through
of the abilityregular analysis of the ability of counterpa
of counterparties
ptance acceptance and management of some degree of
and management of some degree of risk or combination of risks. Emirates'risk or combination of risks. Emirates'
and potential counterparties and potential
theircounterparties to by
meet their obligations
their limitsand by changing their li
DNATA
to meet obligations and changing
is, therefore, to achieveaim
an is, therefore, balance
appropriate to achieve an appropriate
between balance
risk and return andbetween risk and return and
where appropriate. Approximately 93% (2018: 92%) are
of cash and bank balances
where appropriate. Approximately 93% (2018: 92%) of cash and bank balances
minimise potential adverse effects on Emirates'
mise potential adverse effects on Emirates' financial performance.
GROUP financial performance.
held with financial institutionsheld with
based in financial
the UAE. institutions based in the UAE.

ates' FINANCIAL Emirates' risk

risk management procedures are management procedures
designed to identify are designed
and analyse to identify and analyse these risks,
these risks, Thecargo
sale transportation
of passenger is andlargely
cargo achieved
transportation is largely achieved thro
INFORMATION The sale of passenger and through
et appropriate risk limits and controls, and to monitor the risks and adherence to the risks and adherence to
to set appropriate risk limits and controls, and to monitor International
International Air Transport Association Air Transport
(IATA) approved Association
sales agents(IATA) approved
and online sales.sales agents and online s
s by means limits
EMIRATESof reliable and by meansinformation.
up-to-date of reliable and up-to-date
Emirates information.
regularly reviews itsEmirates regularly reviews its All IATA agents have to meet All IATA agents
a minimum have to
financial meetapplicable
criteria a minimum tofinancial criteria
their country of applicable to their count
procedures and systems to reflect changes in markets, productschanges
risk management procedures and systems to reflect in markets, products and
FINANCIAL
management
COMMENTARY and operation
operation to remain accredited. to remain
Adherence to theaccredited. Adherence
financial criteria to the financial
is monitored on an criteria is monitored o
emerginguses
rging best practice. Emirates bestderivative
practice. and
Emirates uses derivative
non-derivative and non-derivative financial
financial ongoing
| DNATA ongoing basis by IATA through their basis
Agencyby Programme.
IATA throughThetheir Agency
credit Programme. The credit risk associ
risk associated
uments
DNATA
instruments to
to hedge certain risk exposures. hedge certain risk exposures. withrelated
such sales agents and trade
the related balances within trade receivables is there
| FINANCIAL
FINANCIAL with such sales agents and the balances within receivables is therefore
| COMMENTARY
COMMENTARY
A risk management programme is that
carried low and
low and further reduced by their further
diverse reduced
base by their
and credit diverse base
risk analytics and credit
performed by risk analytics performed
k management programme is carried out under guidelines areout under guidelines
approved by a that are approved by a
steering group comprising senior evaluation
management. Emirates. Emirates.
and Identification, evaluation and hedging
| EMIRATES
EMIRATES
ing group comprising senior
| CONSOLIDATED
CONSOLIDATED management. Identification, hedging
risks is done in financial risks is done with intheclose cooperation
units. with
Seniorthe operating units. Senior
| FINANCIAL
cial | FINANCIAL
STATEMENTS
STATEMENTS
close cooperation operating Significant balances in other Significant
receivablesbalances
are held inwith
other receivables
companies areaheld
given highwith companies given a high cr
credit
management
agement is also responsible is alsoofresponsible
for the review for the and
risk management review
theofcontrol
risk management and the control rating by leading international rating agencies.
rating by leading international rating agencies.
onment.
DNATA environment.
The various financial The various
risk elements financialbelow:
are discussed risk elements are discussed below:
CONSOLIDATED The table
The table below presents an analysis of below presents
short term bankandeposits
analysisand
of short
bank term bankby
balances deposits and bank balance
FINANCIAL
redit STATEMENTS
risk (i) Credit risk rating agency designation atrating
the endagency designation
of the reporting at the end
period basedof on
the Standard
reporting&period based on Standar

ADDITIONAL Poor's ratings or its equivalentPoor's ratings or

for Emirates' its equivalent
main for Emirates' main banking relationships:
banking relationships:
ates is exposed to creditEmirates
INFORMATION is exposed
risk, which to credit
is the risk that a risk, which is the
counterparty will risk
causethat
a a counterparty will cause a 2019 2
financial loss to Emirates by failing to discharge an obligation. Financial assets that 2019 2018
cial loss to Emirates by failing to discharge an obligation. Financial assets that AED m AE
AED m AED m
ntially subject Emirates topotentially
credit risksubject
consistEmirates to of
principally credit risk consist
deposits principally
with banks and of deposits with banks and
other financial institutions, derivative counterparties as well as receivables from agents AA- to AA+ AA- to AA+ 485 378 485
r financial institutions, derivative counterparties as well as receivables from agents
selling commercial air transportation. A- to A+ 14,664 16,
ng commercial air transportation. Emirates uses external ratingsEmirates uses external
such as Standard & ratings such as Standard & A- to A+ 14,664 16,849
's and Moody's or their equivalent in order to measure and monitor its credit risk and monitor its credit risk
Poor's and Moody's or their equivalent in order to measure BBB+ BBB+ 1,623 2,584 1,623 2,
exposures
sures to financial institutions. In thetoabsence
financial
ofinstitutions.
independent In ratings,
the absence
creditofquality
independent ratings, credit quality Lower than BBB+ 18
Lower than BBB+ 18 11
sessed based on the counterparty's financial position, past experience and other past experience and other
is assessed based on the counterparty's financial position,
Unrated Unrated 229 517 229
rs. factors.

145
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

37. Financial
Financial risk management risk management (continued)
(continued) Interest rate risk Interest rate risk
OVERVIEW
Market risk (ii) Market risk Emiratesof isfluctuations
Emirates is exposed to the effects exposed tointhe
theeffects of fluctuations
prevailing in the prevailing levels of inte
levels of interest
rates on borrowings
rates on borrowings and investments. and investments.
Exposure arises from interestExposure arises from
rate fluctuations in interest rate fluctuation
ates is exposed to market
EMIRATES Emirates is exposed
risk, which to market
is the risk that therisk,
fairwhich
value isorthe risk cash
future that the fair value or future cash
the international
the international financial markets financial
with respect markets
to interest cost with respect
on its to interest
long term debt cost on its long term d
flowswill
s of a financial instrument of fluctuate
a financial instrument
because will fluctuate
of changes in market because
prices.of changes in market prices.
DNATA obligations,
obligations, operating lease rentals operating
and interest lease on
income rentals andsurpluses.
its cash interest income
The keyon its cash surpluses. The
Market
ket risk comprises three types ofrisk
riskcomprises threerisk,
- jet fuel price types of risk -risk
currency jet and
fuel interest
price risk, currency risk and interest
reference
reference rates based on which interestrates
costsbased on which interest
are determined costs
are LIBOR forare
USdetermined
Dollar, are LIBOR for US Do
risk. rate risk.
GROUP
EIBOR for UAE Dirham andEIBOR for UAE
EURIBOR DirhamSummarised
for Euro. and EURIBOR for Euro.data
quantitative Summarised
is quantitative dat
uel price risk Jet fuel price risk available
available in Note 19 for interest in Note 19 for interest cost exposures.
cost exposures.
FINANCIAL
ates is exposed to
INFORMATION Emirates
volatility in theisprice
exposed
of jettofuel
volatility in themonitors
and closely price of jet
thefuel and closely monitors the actual
actual Borrowings taken at variable Borrowings
rates exposetaken at variable
Emirates to cashrates
flowexpose
interestEmirates
rate riskto cash flow interest rate risk w
while
against the forecast cost
cost. To against
manage the
theforecast
price cost.
risk, To manage
Emirates the price
considers the risk,ofEmirates considers the use of
use borrowings
borrowings issued at fixed rates issued attofixed
expose Emirates rates expose
fair value interestEmirates
rate risk.to fair value interest rate risk. Emir
Emirates
EMIRATES
modity commodity
futures, options and
FINANCIAL swaps tofutures,
achieveoptions
a level and swaps over
of control to achieve
higherajet
level
fuelof control over higher jet fuel targets
targets a balanced portfolio a balanced
approach, whilst portfolio approach,
nevertheless taking whilst nevertheless
advantage of taking advantage
COMMENTARY
costs
s so that profitability is not so thataffected.
adversely profitability is not adversely affected. opportune market movements opportune market movements
using appropriate using appropriate
hedging solutions including hedging
interest solutions including inte
| DNATA
DNATA rateand
rate swaps. Variable rate debt swaps.
cashVariable rate
surpluses aredebt anddenominated
mainly cash surpluses
in are
UAEmainly denominated in
ency
|
risk
FINANCIAL
FINANCIAL Currency risk Dirham and US Dollar. Dirham and US Dollar.
| COMMENTARY
COMMENTARY

is exposed to the Emirates

ates| EMIRATES
EMIRATES
effects ofis fluctuation
exposed toin the
the effects of fluctuation
prevailing in the prevailing foreign currency
foreign currency Sensitivity
Sensitivity analysis of market risk analysis of market risk
ange exchange
rates on its financial
| CONSOLIDATED
CONSOLIDATED ratesand
position on cash
its financial position arises
flows. Exposure and cash
due flows.
to Exposure arises due to
| FINANCIAL
FINANCIAL The following
The following sensitivity analysis, relating tosensitivity analysis, instruments,
existing financial relating to existing
shows financial
how instruments, shows
ange exchangethe
rate fluctuations between
| STATEMENTS
STATEMENTS rate
UAE fluctuations
Dirham andbetween the UAE Dirham
other currencies and other currencies generated
generated
profit and equity would change if the market risk
profit and equity would change if the market risk variables had been different at the variables had been different at
from activities.
m Emirates' revenue earning Emirates' Longrevenue earning
term activities. Long
debt obligations term debt obligations are mainly
are mainly
DNATA end of the reporting periodend of all
with theother
reporting period
variables heldwith all other
constant andvariables
has beenheld constant and has b
ominated in UAE Dirhamdenominated
CONSOLIDATED in UAE
or in US Dollar Dirhamthe
to which or UAE
in US Dollar istopegged.
Dirham which the UAE Dirham is pegged.
computed on the basis of assumptions and indices
computed on the basis of assumptions and indices used and considered by other used and considered by o
FINANCIAL
Additionally,
tionally, some lease liabilities some lease liabilities
are denominated in Euro, are denominated
Pound Sterling and in Euro, Pound Sterling and
STATEMENTS
market participants. market participants.
Japanese
nese Yen to provide a natural Yen against
hedge to provide a natural
revenue hedge
inflows against
in these revenue inflows in these currencies.
currencies.
ADDITIONAL
or management Senior
monitors management
currency positions monitors
on a currency
regular basis. positions on a regular basis. 2019 20182019 2018
INFORMATION
Effect on Effect on Effect
Effect on onEffectEffect
on on Effect on Effec
Emirates
ates is in a net payer position withis in a net to
respect payer
the position
US Dollarwith
andrespect
in a nettosurplus
the US Dollar and in a net surplus profit equity profitprofit equity
equity profit eq
tion for other currencies.position
Currency forsurpluses
other currencies. Currency
are converted surpluses
to US are UAE
Dollar and converted to US Dollar and UAE AED m AED m AED AED
m m AED AED m m AED m AE
Interest cost Interest cost
am funds. Currency risksDirham funds.from
arise mainly Currency risks revenue
Emirates' arise mainly fromactivities
earning Emirates'in revenue earning activities in
Euro, Pound Sterling, Australian - 25 basis points - 25 basis points
, Pound Sterling, Australian Dollar, Indian Rupee, ChineseDollar,
Yuan Indian Rupee,
and South Chinese Yuan and South African
African
Rand. Currency risksand
areoptions,
hedged as
using forwards as
andwell
options, as appropriate, as well as UAE Dirham UAE Dirham 4 4 5 4 5 4 5
d. Currency risks are hedged using forwards appropriate, as
by wayforeign
of a natural hedge between foreign currency inflows and outflows. US Dollar US Dollar 81 32 71 81 40 32 71
ay of a natural hedge between currency inflows and outflows.
Euro Euro 1 1 - 1 - 1 -
Emirates
ates is also subject to the is also
risk that subject
countries in to the itrisk
which that
may countries
earn in which
revenues may it may earn revenues may 86 37 76 86 45 37 76
impose + 25 basis points + 25 basis points
ose restrictions or prohibition onrestrictions
the export or of prohibition on the
those revenues. export seeks
Emirates of those
to revenues. Emirates seeks to
minimise this funds
risk bytorepatriating UAE Dirham UAE Dirham (4) (4) (5) (4) (5) (4) (5)
mise this risk by repatriating surplus the UAE onsurplus fundsbasis.
a monthly to the UAE on a monthly basis. Cash
Cash
US Dollar US Dollar (81) (32) (71) (81) (40) (32) (71)
cash equivalents includeand
AEDcash
396equivalents include
m (2018: AED 182 AED 396 inmcountries
m) held (2018: AED 182 m) held in countries where
where
Euro Euro (1) (1) - (1) - (1) -
ange controls and other exchange
restrictionscontrols
apply. and other restrictions apply.
(86) (37) (76) (86) (45) (37) (76)

146
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Financial risk management (continued)
37. Financial risk management (continued) (iii) Liquidity risk
2019 2018
OVERVIEW (iii) Liquidity risk
Effect on Effect on Effect on Effect
2019 on 2018 Liquidity risk is the risk that Emirates is unable to meet its payment obligations
EMIRATES profit equity profit
Effect on equity
Effect on Effect on Effect on associated with its financial Liquidity
liabilities when
risk isthey
the fall
riskdue
thatand to replace
Emirates funds to
is unable when
meet its payment obligat
AED m AED m AED m
profit AED equity
m profit equity they are withdrawn. associated with its financial liabilities when they fall due and to replace funds w
DNATA
est income AED m AED m AED m AED m they are withdrawn.
Emirates' liquidity management process as monitored by senior management, includes
basis points Interest income (9) (9) (13) (13) the following: Emirates' liquidity management process as monitored by senior management, inclu
GROUP
basis points - 25 basis points 9 9 13 (9) 13 (9) (13) (13)  the following:
Day to day funding, managed by monitoring future cash flows to ensure that
FINANCIAL + 25 basis points 9 9 13 13 requirements can be met.  ThisDay
includes
to dayreplenishment
funding, managedof funds
byas they mature.
monitoring future cash flows to ensure t
ency INFORMATION
- Euro Maintaining rolling forecastsrequirements
of Emirates’can liquidity
 be met. This includesthe
position on basis of
replenishment of funds as they matur
% Currency - Euro 8 (1) 1 (1) expected cash flows.  Maintaining rolling forecasts of Emirates’ liquidity position on the basis
EMIRATES  Monitoring liquidity ratios and net current
expected cashassets
flows.against internal standards.
FINANCIAL + 1% (8) 1 (1) 8 1 (1) 1 (1)
COMMENTARY  Maintaining debt financing plans.
Monitoring liquidity ratios and net current assets against internal standards.
- 1% (8) 1 (1) 1 Maintaining diversified credit lines debt
including stand-by
ency| DNATA
- Pound Sterling
 Maintaining financing plans. credit facility
DNATA arrangements.  Maintaining diversified credit lines including stand-by credit faci
%
| FINANCIAL
FINANCIAL Currency - Pound Sterling
5 3 1 (1)
| COMMENTARY
COMMENTARY arrangements.
+ 1% 5 3 1 (1) Sources of liquidity are regularly reviewed by senior management to maintain a
(5) (3) (1) 1
| EMIRATES
EMIRATES diversification by geography,Sources
provider,ofproduct
liquidityand
areterm and toreviewed
regularly ensure Emirates hasmanagement to mainta
by senior
| CONSOLIDATED
CONSOLIDATED - 1% (5) (3) (1) 1
ency| FINANCIAL
- Australian Dollar
FINANCIAL adequate resources for its operations.
diversification by geography, provider, product and term and to ensure Emirates
| STATEMENTS
STATEMENTS
% Currency - Australian2 Dollar 1 1 (1) adequate resources for its operations.
DNATA + 1% (2) (1) (1) 2 1 1 1 (1)
CONSOLIDATED
FINANCIAL - 1% (2) (1) (1) 1
ency STATEMENTS
- Indian Rupee
% ADDITIONAL
Currency - Indian Rupee
4 4 4 4
INFORMATION
+ 1% (4) (4) (4) 4 (4) 4 4 4
- 1% (4) (4) (4) (4)
ency - Chinese Yuan
% Currency - Chinese Yuan
1 1 2 2
+ 1% (1) (1) (2) 1 (2) 1 2 2
- 1% (1) (1) (2) (2)
ency - South African Rand
% Currency - South African
1 Rand 1 1 1
+ 1% (1) (1) (1) 1 (1) 1 1 1
- 1% (1) (1) (1) (1)

147
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Financial risk management

37. Financial
(continued)
risk management (continued) 38. Capital management 38. Capital management
OVERVIEW

marised below in the table

Summarised
is the maturity
below profile
in the table
of financial
is the maturity
liabilities profile
and net-of financial liabilities and net- Emirates' objective when managing
Emirates'capital
objective
is towhen
safeguard
managing
its ability
capital
to is
continue
to safeguard
as a its ability to continue
EMIRATES
ed derivative financial liabilities
settled derivative
based onfinancial
the remaining
liabilitiesperiod
basedatonthetheend
remaining
of period at the end of going concern in order to provide
going concern
returns for
in order
its Owner
to provide
and toreturns
maintain
for an
its optimal
Owner and to maintain an opt
orting period to the contractual
reporting maturity
period todate.
the The
contractual
amountsmaturity
disclosed
date.
are The
the amounts disclosed are the capital structure to reduce the
capital
cost of
structure
capital. to reduce the cost of capital.
DNATA
ractual undiscounted cash
contractual
flows. undiscounted cash flows.
Emirates monitors the return
Emirates
on Owner's
monitors
equity,
the return
which on
is defined
Owner'sasequity,
the profit
which is defined as the p
GROUP
attributable to the Owner expressed
attributableastoa the
percentage
Owner expressed
of averageasOwner's
a percentage
equity. of average Owner's eq
Less than 2-5 Less
Overthan 2-5 Over
Emirates seeks to provide aEmirates
better return
seeks to provide
the Owner
a better
by borrowing
return toand
the taking
Owner by borrowing and ta
FINANCIAL 1 year years 5 years
1 year Totalyears 5 years Total
INFORMATION aircraft on operating leases aircraft
to meetonitsoperating
growth plans.
leasesInto2019,
meetEmirates
its growth
achieved
plans. aIn 2019, Emirates achieve
AED m AED m AED AED
m m AED AED
m m AED m AED m
return on Owner's equity funds
return
of 2.4%
on Owner's
(2018: 7.9%).
equity funds of 2.4% (2018: 7.9%).
9 EMIRATES
FINANCIAL
2019
owings and lease
COMMENTARY liabilities
Borrowings and 9,725
lease liabilities
31,423 22,7779,725 63,925
31,423 22,777 63,925 Emirates also monitors capital
Emirates
on the basis
also monitors
of a gearing
capital
ratio
onwhich
the basis
is calculated
of a gearing
as the
ratio which is calculated as
ratio of borrowings and leaseratio
liabilities,
of borrowings
net of cash
andassets
lease to
liabilities,
total equity.
net ofIncash
2019,
assets
this to total equity. In 2019,
vative financial instruments
| DNATA
DNATA Derivative financial19
instruments27 25 19 71 27 25 71
| FINANCIAL
FINANCIAL ratio is 95.4% (2018: 82.8%) ratio
and ifis aircraft
95.4% (2018:
operating
82.8%)
leases
andare
if aircraft
included,
operating
the ratioleases
is are included, the rat
ision| COMMENTARY
for aircraft return conditions
COMMENTARY Provision for aircraft
693return conditions
1,811 1,298 693 3,8021,811 1,298 3,802
209.8% (2018: 216.4%). 209.8% (2018: 216.4%).
e and other payables (excluding
Trade and other payables (excluding
| EMIRATES
EMIRATES
enger and cargo sales in passenger
| CONSOLIDATED
CONSOLIDATED advance) and 14,822
cargo sales in advance)
155 14,822
- 14,977 155 - 14,977
| FINANCIAL
FINANCIAL
| STATEMENTS
STATEMENTS 25,259 33,416 24,100
25,259 82,775
33,416 24,100 82,775
8 DNATA
2018
owings and lease liabilities
CONSOLIDATED Borrowings and10,635
lease liabilities
28,514 19,943
10,635 59,092
28,514 19,943 59,092
FINANCIAL
vativeSTATEMENTS
financial instruments
Derivative financial35
instruments26 - 35 61 26 - 61
isionADDITIONAL
for aircraft return conditions
Provision for aircraft
704return conditions
1,980 1,331 704 4,0151,980 1,331 4,015
e andINFORMATION
other payables (excluding
Trade and other payables (excluding
enger and cargo sales in passenger
advance) and 16,954
cargo sales in advance)
123 16,954
- 17,077 123 - 17,077
28,328 30,643 21,274
28,328 80,245
30,643 21,274 80,245

148
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW
Independent Auditor’s Report to the Owner of dnata
EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION
Our opinion
EMIRATES
In our opinion, the consolidated financial statements present fairly, in all material financial statements in the United Arab Emirates. We have fulfilled our other ethical
FINANCIAL
COMMENTARY respects, the consolidated financial position of dnata and its subsidiaries (together responsibilities in accordance with these requirements and the IESBA Code.
referred to as “dnata”) as at 31 March 2019, and its consolidated financial performance
DNATA
FINANCIAL and its consolidated cash flows for the year then ended in accordance with International Our audit approach
COMMENTARY Financial Reporting Standards (“IFRS”). Overview
As part of designing our audit, we determined materiality and assessed the risks of
EMIRATES
CONSOLIDATED
What we have audited
material misstatement in the consolidated financial statements. In particular, we
FINANCIAL dnata’s consolidated financial statements comprise: considered where management made subjective judgements; for example, in respect
STATEMENTS
● the consolidated income statement for the year ended 31 March 2019; of significant accounting estimates that involved making assumptions and considering
| DNATA future events that are inherently uncertain. As in all of our audits, we also addressed
| CONSOLIDATED ● the consolidated statement of comprehensive income for the year ended 31 March 2019;
| FINANCIAL the risk of management override of internal controls, including among other matters
| STATEMENTS
● the consolidated statement of financial position as at 31 March 2019;
consideration of whether there was evidence of bias that represented a risk of material
● the consolidated statement of changes in equity for the year ended 31 March 2019; misstatement due to fraud.
ADDITIONAL
INFORMATION ● the consolidated statement of cash flows for the year ended 31 March 2019; and
The areas that in our professional judgement, is of most significance to the audit (‘Key
● the notes to the consolidated financial statements, which include a summary of audit matters’) and where we focused most audit effort during the year were:
significant accounting policies.
Key audit matters ● Impairment of goodwill
Basis for opinion ● Acquisition of Qantas Catering
We conducted our audit in accordance with International Standards on Auditing
(“ISAs”). Our responsibilities under those standards are further described in the We tailored the scope of our audit in order to perform sufficient work to enable us to
Auditor’s responsibilities for the audit of the consolidated financial statements section provide an opinion on the consolidated financial statements as a whole, taking into
of our report. account the structure of dnata, the accounting processes and controls, and the industry
in which dnata operates.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
Independence significance in our audit of the consolidated financial statements for the current year.
We are independent of dnata in accordance with the International Ethics Standards These matters were addressed in the context of our audit of the consolidated financial
Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”) statements as a whole, and in forming our opinion thereon, and we do not provide a
and the ethical requirements that are relevant to our audit of the consolidated separate opinion on these matters.

PricewaterhouseCoopers (Dubai Branch), License no. 102451, Emaar Square, Building 4, Level 8, P O Box 11987, Dubai - United Arab Emirates T: +971 (0)4 304 3100, F: +971 (0)4 346 9150, www.pwc.com/me
Douglas O’Mahony, Rami Sarhan, Jacques Fakhoury and Mohamed ElBorno are registered as practising auditors with the UAE Ministry of Economy 149
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of dnata (continued)
2018-19

Key audit matter How our audit addressed the Key audit matter
OVERVIEW
Impairment of goodwill We obtained an understanding of management’s impairment models and key assumptions. We
then tested these impairment models, in particular, with regard to the appropriateness of the key
EMIRATES As at 31 March 2019, the carrying value of goodwill was AED 2,200 million (2018: AED 2,065 assumptions used within the models, as follows:
million). Refer to notes 2, 3 and 10 to the consolidated financial statements.
● we utilised our internal valuation specialists to perform independent calculations of the
DNATA Goodwill is not subject to amortisation and in accordance with IAS 36 “Impairment of assets” is discount rates, with particular reference to comparable companies and compared this to the
required to be tested annually for impairment. discount rates used by management;
GROUP
The recoverable amount of dnata’s cash generating units or group of cash generating units to ● we agreed the base cash flows used in management’s impairment models to formally
which goodwill is allocated is determined as the higher of fair value less costs of disposal and approved budgets;
value in use. The recoverable amount is compared to the carrying value of the cash generating
FINANCIAL ● we compared future expected revenue growth rates and profit margins used in the formally
unit or group of cash generating units to which goodwill is allocated in order to assess whether
INFORMATION approved budgets and beyond the period of the formally approved budgets to historical
an impairment exists. The value in use is determined by calculating the discounted cash flows of
trends and reviewed whether management’s estimates made in prior periods were reasonable
each cash generating unit or group of cash generating units.
EMIRATES compared to actual performance;
FINANCIAL The calculation of value in use incorporates key assumptions including expected revenue growth
● we compared the long term growth rates to external sources of information including
COMMENTARY rates, profit margins, long term growth rates and discount rates.
economic forecasts;
The impairment model prepared by management in respect of one cash generating unit
DNATA ● we performed a sensitivity analysis over each of the significant assumptions within the value in
FINANCIAL
containing goodwill determined that an impairment of AED 66 million was required which was
use calculations and considered the appropriateness of the impairment charge recognised; and
COMMENTARY recorded by management in the consolidated financial statements.
● we tested the mathematical accuracy of the model.
The remaining impairment models prepared by management determined that adequate headroom
EMIRATES We assessed whether the related disclosures in notes 2, 3 and 10 to the consolidated financial
existed not to result in the need for an impairment charge in reasonably possible scenarios.
CONSOLIDATED
statements are consistent with the requirements of IFRS.
FINANCIAL We focused on this area because the determination of whether an impairment loss should be
STATEMENTS recognised is inherently complex and required management to exercise judgement over the
calculation of value in use.
| DNATA
| CONSOLIDATED
| FINANCIAL Key audit matter How our audit addressed the Key audit matter
| STATEMENTS
Acquisition of Qantas Catering For the valuation of land performed by management’s external expert, we obtained and tested
ADDITIONAL supporting documentation and assessed whether the expert was independent, capable and
INFORMATION On 31 October 2018, dnata through its wholly owned subsidiary Alpha Flight Services Pty Ltd, competent.
Australia, acquired 100% ownership of Qantas Catering Group Ltd and Snap Fresh Pty Ltd,
For the valuation of other items of property, plant and equipment we agreed that the
together forming the Qantas Catering business. Refer to note 33 to the consolidated financial
depreciated historic replacement cost and management’s estimates of fair value were
statements.
reasonable with reference to comparable assets.
IFRS 3 ‘Business Combinations’ requires dnata to recognise the identifiable assets and liabilities
For the valuation of customer relationships we validated the assumptions underlying the
at fair value at the date of the acquisition, with the excess of the purchase consideration over
calculation of the fair value by management’s external expert. In particular:
the identified fair values recognised as goodwill.
● we assessed if the income approach (excess earnings) valuation methodology is an
The fair value of land was determined using a market approach by management’s external
acceptable valuation practice;
expert.
● we compared the revenue projections, attrition rates and profit margins applied to existing
Other items of property, plant and equipment were valued using depreciated historic
customer contracts to historical trends;
replacement costs or management’s estimates of fair value.
● we obtained the inputs used to calculate the discount rate and assessed them by using our
Customer relationships were valued using the income approach (excess earnings) by
specialists to draw comparisons with a selection of comparable companies; and
management’s external expert. Key assumptions under the income approach for valuing
customer relationships include projections of customer revenue and attrition rates, forecast ● we compared the useful economic life of the customer relationships to those used in
profit margins, discount rates and useful economic life. comparable companies.
Other identifiable assets and liabilities were valued by management and no significant We assessed the completeness of management’s list of liabilities recognised using our
judgement was required. knowledge of the business, industry, audit procedures performed post acquisition, enquiries of
senior management and reading the Share Sale Agreement.
We focused on this area because the accounting treatment for the provisional acquisition date
balance sheet is inherently complex and required management to exercise judgements over the We traced the purchase consideration to supporting documents and recomputed the value of
valuation of property, plant and equipment and intangible assets, the completeness of liabilities goodwill recognised as the difference between the purchase consideration and the fair value of
and the calculation of the associated goodwill of AED 193 million. the net assets acquired.
We assessed whether the related disclosures in notes 2, 3 and 33 to the consolidated financial
statements are consistent with the requirements of IFRS.
150
THE EMIRATES GROUP
ANNUAL REPORT Independent Auditor’s Report to the Owner of dnata (continued)
2018-19
Other information
Management is responsible for the other information. The other information comprises
OVERVIEW
the information included in the Annual Report (but does not include the consolidated
EMIRATES
financial statements and our auditor’s report thereon).
Our opinion on the consolidated financial statements does not cover the other information
DNATA and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility
GROUP is to read the other information identified above and, in doing so, consider whether the
other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.
FINANCIAL
INFORMATION If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report
EMIRATES in this regard.
FINANCIAL
COMMENTARY
DNATA
Auditor’s responsibilities for the audit of the consolidated financial statements
FINANCIAL
COMMENTARY Our objectives are to obtain reasonable assurance about whether the consolidated
financial statements as a whole are free from material misstatement, whether due to fraud
EMIRATES or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
CONSOLIDATED
FINANCIAL
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
STATEMENTS with ISAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate,
| DNATA they could reasonably be expected to influence the economic decisions of users taken on
| CONSOLIDATED
| FINANCIAL the basis of these consolidated financial statements.
| STATEMENTS
As part of an audit in accordance with ISAs, we exercise professional judgement and
ADDITIONAL maintain professional scepticism throughout the audit. We also:
INFORMATION
● Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
● Obtain an understanding of internal control relevant to the audit 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 dnata’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on dnata’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause dnata to cease to
continue as a going concern.
Responsibilities of management and those charged with
governance for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with IFRS, 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.
In preparing the consolidated financial statements, management is responsible for
assessing dnata’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate dnata or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing dnata’s financial reporting
process.
● Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves
fair presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within dnata to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance
of the dnata audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the consolidated financial
statements of the current year and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
PricewaterhouseCoopers
5 May 2019
Douglas O’Mahony
Registered Auditor Number 834
Dubai, United Arab Emirates
151
 Consolidated Income Statement
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 dnata
for the year
CONSOLIDATED INCOMEended
STATEMENT 31 March 2019
FOR THE YEAR ENDED 31 MARCH 2019

Note 2019 2018

OVERVIEW
AED m AED m
dnata
EMIRATES Revenue 5 13,888 12,931
CONSOLIDATED INCOME STATEMENT
Other operating income 531 143
DNATA FOR THE YEAR
Operating costs ENDED 31 MARCH 2019 6 (13,141) (11,878)
Operating profit Note 1,278
2019 1,196
2018
GROUP Finance income AED143m AED98 m
Finance costs (45) (31)
FINANCIAL Revenue 5 13,888 12,931
Share of results of investments accounted for using the equity method 11 131 126
INFORMATION Other operating income 531 143
Profit before income tax 1,507 1,389
Operating costs 6 (13,141) (11,878)
EMIRATES Income tax expense 7 (26) (37)
FINANCIAL Operating profit 1,278 1,196
COMMENTARY Profit for the year 1,481 1,352
Finance income 143 98
Profit attributable to non-controlling interests 36 35
DNATA Finance costs (45) (31)
FINANCIAL Profit attributable to dnata's Owner 1,445 1,317
COMMENTARY Share of results of investments accounted for using the equity method 11 131 126
Profit before income
CONSOLIDATED tax
STATEMENT OF COMPREHENSIVE INCOME 1,507 1,389
EMIRATES
CONSOLIDATED Income tax expense
FOR THE YEAR ENDED 31 MARCH 2019 7 (26) (37)
FINANCIAL
Profit for the year 1,481 1,352
STATEMENTS Profit for the year 1,481 1,352

| DNATA Consolidated Statement of Comprehensive Income

Profit attributable to non-controlling interests
Items that will not be reclassified to the consolidated income statement
Profit attributable to dnata's Owner
36
1,445
35
1,317
Remeasurement of retirement benefit obligations - net of deferred tax 4 2
for theof other
year ended 31 March 2019
| CONSOLIDATED
| FINANCIAL
| STATEMENTS Share
CONSOLIDATED comprehensive
STATEMENT income of investments
OF COMPREHENSIVE accounted
INCOME for using the equity method -
FOR THEnet YEAR
of deferred
ENDED tax31 MARCH 2019 - 42
ADDITIONAL
INFORMATION Items that are or may be reclassified subsequently to the consolidated income statement
Profit for the year 1,481 1,352
Currency translation differences (171) 218
Items that will not be reclassified to the consolidated income statement
Cash flow hedges 5 (7)
Remeasurement of retirement benefit obligations - net of deferred tax 4 2
Net investment hedge 22 4 (9)
Share of other comprehensive income of investments accounted for using the equity method -
Share of other comprehensive income of investments accounted for using the equity method -
net of deferred tax - 42
net of deferred tax - 7
Items that are or may be reclassified subsequently to the consolidated income statement
Other comprehensive income for the year (158) 253
Currency translation differences (171) 218
Total comprehensive income for the year 1,323 1,605
Cash flow hedges 5 (7)
Total comprehensive income attributable to non-controlling interests 22 49
Net investment hedge 22 4 (9)
Total comprehensive income attributable to dnata's Owner 1,301 1,556
Share of other comprehensive income of investments accounted for using the equity method -
The accompanying notes
net of deferred tax are an integral part of these consolidated financial statements. - 7
Other comprehensive income for the year (158) 253
Total comprehensive income for the year 1,323 1,605
Total comprehensive income attributable to non-controlling interests 22 49
Total comprehensive income attributable to dnata's Owner 1,301 1,556
The accompanying notes are an integral part of these consolidated financial statements.

The accompanying notes are an integral part of these consolidated financial statements.
152
 Consolidated Statement of Financial Position
THE EMIRATES GROUP
a ANNUAL REPORT dnata
2018-19
NSOLIDATED STATEMENTCONSOLIDATED
OF FINANCIAL POSITION
AT 31 MARCH 2019
as at 31 March 2019
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2019

Note 2019 2018

Note 2019 2018 Note 2019 2018
Note 2019 2
OVERVIEW
AED m AED m AED m AED m AED m AED m AED m AE
ETS EMIRATES ASSETS EQUITY AND LIABILITIES EQUITY AND LIABILITIES
-current assets Non-current assets Capital and reserves Capital and reserves
erty, DNATA
plant and equipmentProperty, plant and equipment
8 2,040 1,861 8 2,040 1,861 Capital Capital 15 63 6315 63
stment property Investment property 9 345 338 9 345 338 Capital reserve Capital reserve (70) (60) (70)
ngibleGROUP
assets Intangible assets 10 3,039 2,78810 3,039 2,788 Other reserves Other reserves 16 (311) (157)
16 (311) (
stments accounted for using the equityaccounted for using the equity
Investments Retained earnings Retained earnings 8,229 7,257 8,229 7
FINANCIAL
hod INFORMATION method 11 503 47311 503 473 Attributable to dnata's Owner
Attributable to dnata's Owner 7,911 7,103 7,911 7,
ance lease rentals Advance lease rentals 12 45 4312 45 43 Non-controlling interests Non-controlling interests 116 179 116
e andEMIRATES
other receivables
FINANCIAL
14
Trade and other receivables 114 13414 114 134 Total equity Total equity 8,027 7,282 8,027 7,
rred income tax assets
COMMENTARY 24
Deferred income tax assets 110 8124 110 81
DNATA 6,196 5,718 6,196 5,718 Non-current liabilities Non-current liabilities
ent assets
FINANCIAL
Current assets Trade and other payables Trade and other payables17 198 16317 198
COMMENTARY
ntories Inventories 13 143 8713 143 87 Borrowings and lease liabilitiesBorrowings and lease liabilities
21 1,177 86721 1,177
e andEMIRATES
other receivables
CONSOLIDATED
14
Trade and other receivables 3,611 3,49314 3,611 3,493 Provisions Provisions 18 598 56218 598
me tax assets
FINANCIAL Income tax assets 19 3 19 3 Deferred income tax liabilities Deferred income tax liabilities
24 153 14224 153
STATEMENTS
t term bank deposits Short term bank deposits28 3,121 3,76028 3,121 3,760 2,126 1,734 2,126 1,
and| DNATA
cash equivalents 28
Cash and cash equivalents 2,001 1,18528 2,001 1,185 Current liabilities Current liabilities
| CONSOLIDATED
| FINANCIAL 8,895 8,528 8,895 8,528 Trade and other payables Trade and other payables17 4,359 4,84817 4,359 4
| STATEMENTS
t classified as held for saleAsset classified as held for
11sale - 4611 - 46 Income tax liabilities Income tax liabilities 46 64 46
ADDITIONAL 8,895 8,574 8,895 8,574 Borrowings and lease liabilitiesBorrowings and lease liabilities
21 432 29221 432
INFORMATION
l assets Total assets 15,091 14,292 15,091 14,292 Derivative financial instruments 29
Derivative financial instruments 11 2529 11
Provisions Provisions 18 90 4718 90
4,938 5,276 4,938 5,
Total liabilities Total liabilities 7,064 7,010 7,064 7,
Total equity and liabilities Total equity and liabilities 15,091 14,292 15,091 14,
accompanying notes are an integral
The part of these
accompanying notesconsolidated financial
are an integral part of these consolidated financial
ments. The consolidated financial statements were approved
The consolidated on statements
financial 5th May 2019 and
were signed by:
approved on 5th May 2019 and signed
statements.
The consolidated financial statements were approved on 5 May 2019 and signed by:

Sheikh Ahmed bin Saeed Al-Maktoum Gary Chapman

Sheikh Ahmed bin Saeed Al-Maktoum Gary Chapman
Chairman and Chief Executive Chairman and Chief Executive President President
Sheikh Ahmed bin Saeed Al-Maktoum Gary Chapman
Chairman and Chief Executive President

The accompanying notes are an integral part of these consolidated financial statements.
153
 Consolidated Statement of Changes in Equity
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 dnata
for the year ended 31 March 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
Attributable to dnata's Owner
OVERVIEW Non-
Capital Other Retained controlling Total
EMIRATES
Note Capital reserve reserves earnings Total interests equity
AED m AED m AED m AED m AED m AED m AED m
DNATA
1 April 2017 63 (66) (355) 6,897 6,539 167 6,706
GROUP Profit for the year - - - 1,317 1,317 35 1,352
Other comprehensive income for the year - - 195 44 239 14 253
FINANCIAL Total comprehensive income for the year - - 195 1,361 1,556 49 1,605
INFORMATION
Acquired from non-controlling interest - 5 - - 5 (4) 1
EMIRATES Dividends - - - (1,000) (1,000) (44) (1,044)
FINANCIAL
COMMENTARY
Transfer from retained earnings - 1 - (1) - - -
Dilution of interest - - - - - 11 11
DNATA
FINANCIAL
Transactions with Owners - 6 - (1,001) (995) (37) (1,032)
COMMENTARY Share of other equity movements of investments
EMIRATES accounted for using the equity method 11 - - 3 - 3 - 3
CONSOLIDATED 31 March 2018 63 (60) (157) 7,257 7,103 179 7,282
FINANCIAL
STATEMENTS Impact on adoption of IFRS 9 (Notes 11 and 14) - - - (14) (14) - (14)
Adjusted 1 April 2018 63 (60) (157) 7,243 7,089 179 7,268
| DNATA
| CONSOLIDATED Profit for the year - - - 1,445 1,445 36 1,481
| FINANCIAL
| STATEMENTS Other comprehensive income for the year - - (148) 4 (144) (14) (158)
Total comprehensive income for the year - - (148) 1,449 1,301 22 1,323
ADDITIONAL
INFORMATION Non-controlling interest on acquisition of
subsidiaries 33 - - - - - 8 8
Acquired from non-controlling interest - 42 - 31 73 (55) 18
Dividends - - - (500) (500) (38) (538)
Option to acquire non-controlling interest - (52) - - (52) - (52)
Transfer to retained earnings - - (6) 6 - - -
Transactions with Owners - (10) (6) (463) (479) (85) (564)
31 March 2019 63 (70) (311) 8,229 7,911 116 8,027

The capital reserve includes the fair value of the options issued by dnata to acquire the non-controlling interest in subsidiaries.

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

The accompanying notes are an integral part of these consolidated financial statements.
154
 Consolidated Statement of Cash Flows
THE EMIRATES GROUP
ta ANNUAL REPORT dnata
2018-19
NSOLIDATED STATEMENT
for the
CONSOLIDATED
year ended 31 March 2019
OF CASH FLOWS
THE YEAR ENDED 31 MARCH
FOR THE
2019
STATEMENT OF CASH FLOWS
YEAR ENDED 31 MARCH 2019

Note 2019 2018

Note 2019 2018 Note 2019 2018
Note 2019 2
OVERVIEW
AED m AED m AED m AED m AED m AED m AED m AE
rating activities
EMIRATES Operating activities Investing activities Investing activities
t before income tax Profit before income tax 1,507 1,389 1,507 1,389 Additions to property, plant and
Additions
equipment
to property, plant8 and equipment
(427) (308)8 (427) (
stments for:
DNATA Adjustments for: Additions to investment property
Additions to investment property
9 (20) (111)9 (20) (
epreciation, amortisation andDepreciation,
impairment amortisation
6 and impairment
624 5316 624 531 Additions to intangible assets Additions to intangible assets
10 (226) (92)
10 (226)
nanceGROUP
income - net Finance income - net (98) (67) (98) (67) Investments in associates and Investments
joint ventures
in associates 11
and joint ventures
(26) (5)
11 (26)
mortisation of advance leaseAmortisation
rentals of advance12lease rentals 4 3
12 4 3 Dividends from investments accounted
Dividendsfor
from
using
investments accounted for using
are of
FINANCIAL
results of investmentsShare
accounted for of investments accounted for
of results the equity method the equity method 11 67 31
11 67
INFORMATION
ing the equity method 11
using the equity method (131) (126)
11 (131) (126) Acquisition of subsidiaries, netAcquisition
of cash acquired
of subsidiaries,33net of cash(480)
acquired (12)
33 (480)
EMIRATES Proceeds from sale of property,
Proceeds
plant and
from sale of property, plant and
ain onFINANCIAL
sale of investments accounted for of investments accounted for
Gain on sale
equipment equipment 10 8 10
ing the equity method
COMMENTARY using the equity method (3) - (3) -
ain onDNATA
sale of investment held foron
Gain sale - net
sale (321)- net
of investment held for sale - (321) - Proceeds from sale of investments
Proceeds
accounted
from sale
for of investments accounted for
using the equity method using the equity method 18 - 18
ss onFINANCIAL
sale of property, plantLoss
and on
equipment 1
sale of property, plant and equipment 3 1 3
COMMENTARY Proceeds from sale of held forProceeds
sale investment 412
from sale of held for sale investment - 412
et provision for impairment of
Nettrade
provision for impairment of trade
Loans to related parties - net Loans to related parties - 31
net - 12
31 -
ceivables
EMIRATES
receivables 14 67 86
14 67 86
CONSOLIDATED
Movement in short term bankMovement
deposits - over
in short
3 term bank deposits - over 3
ovision for retirement benefit
FINANCIAL obligations
Provision 6
for retirement benefit 259
obligations 2596 259 259
STATEMENTS months original maturity months original maturity 639 (1,744) 639 (1,
et movement in derivative financial
Net movement in derivative financial
Finance income Finance income 136 75 136
struments
| DNATA instruments (7) 17 (7) 17
| CONSOLIDATED interest from non-controlling interest (25)
Acquired from non-controllingAcquired (11) (25)
ments of retirement benefit
| FINANCIAL obligations
Payments (220)
of retirement benefit obligations (231) (220) (231)
| STATEMENTS Net cash generated from / (used
Net cash
in) investing
generatedactivities
from / (used in) investing
78 activities
(2,157) 78 (2,1
me tax paid Income tax paid (63) (86) (63) (86)
nge inADDITIONAL
inventories Change in inventories (7) 4 (7) 4
INFORMATION Financing activities Financing activities
nge in trade and other receivables
Change in trade and other receivables(161) (213) (161) (213)
Proceeds from loans Proceeds from loans 22 613 475
22 613
nge in provisions, trade and other in
Change payables (34)
provisions, trade and other payables 289 (34) 289
Repayment of loans Repayment of loans 22 (156) (306)
22 (156) (
cash generated from operating generated from operating1,417
Net cashactivities activities 1,858 1,417 1,858
Repayment of lease liabilities Repayment of lease liabilities (16) (9) (16)
Finance costs Finance costs (46) (29) (46)
Theintegral
accompanying notes are an accompanying notesconsolidated
part of these are an integral part ofstatements
financial these consolidated financial statements
Dividend paid to dnata's Owner
Dividend paid to dnata's Owner (1,000) - (1,000)
Dividends paid to non-controlling
Dividends
interests
paid to non-controlling interests
(38) (53) (38)
Net cash (used in) / generated
Netfrom
cashfinancing
(used in) activities
/ generated from(643)
financing activities
78 (643)
Net change in cash and cash Net
equivalents 852
change in cash and cash equivalents (221) 852 (2
Cash and cash equivalents at beginning
Cash and cash
of the
equivalents
year at beginning
1,112
of the year1,250 1,112 1,
Effects of exchange rate changes
Effects of exchange rate changes (58) 83 (58)
Cash and cash equivalents atCash
end and
of the
cash
year
equivalents
28 at end of
1,906
the year 1,11228 1,906 1,

The accompanying notes are an integral part of these consolidated financial statements.
155
 Notes to the Consolidated Financial Statements
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
for
NOTESthe year
TO THE endedFINANCIAL
CONSOLIDATED 31 March 2019
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019

1. General information
OVERVIEW
dnata comprises dnata and its subsidiaries. dnata was incorporated in the Emirate of
EMIRATES Dubai, UAE with limited liability, under an Emiri Decree issued by H.H. Sheikh Maktoum
bin Rashid Al-Maktoum on 4 April 1987. On that date, the total assets and liabilities of
DNATA Dubai National Air Travel Agency were transferred to dnata, with effect from 1 April
1987, for nil consideration. dnata is wholly owned by the Investment Corporation of
GROUP Dubai (“the parent company”), a Government of Dubai entity.
New standards, amendments to published standards and interpretations that are
relevant to dnata
Effective and adopted in the current year
At the date of authorisation of these consolidated financial statements, certain new
standards or amendments to the existing standards were effective for the current
financial year and have been adopted by dnata. These are as follows:

dnata is incorporated and domiciled in Dubai, UAE. The address of its registered office is IFRS 9, Financial Instruments
FINANCIAL
INFORMATION Dnata Travel Centre, PO Box 1515, Dubai, UAE.
IFRS 9 replaced IAS 39. The new standard addresses the classification, measurement and
EMIRATES The main activities of dnata comprise: derecognition of financial assets and financial liabilities, introduces a new impairment
FINANCIAL
model for financial assets and also new rules for hedge accounting.
COMMENTARY
 Ground and cargo handling services
DNATA  Travel services dnata adopted IFRS 9 from 1 April 2018. dnata’s financial assets comprising trade and
FINANCIAL
COMMENTARY  Inflight catering other receivables (excluding prepayments and advance lease rentals), short term bank
deposits and cash and cash equivalents were previously classified as ‘Loans and
EMIRATES 2. Summary of significant accounting policies receivables’ and were measured at amortised cost under IAS 39. dnata has assessed that
CONSOLIDATED
FINANCIAL
these financial assets meet the conditions for classification and measurement at
STATEMENTS A summary of the significant accounting policies, which have been applied consistently amortised cost under IFRS 9. Accordingly there is no impact on the measurement of
in the preparation of these consolidated financial statements are set out below. dnata’s financial assets, while the classification of these assets changes from ‘Loans and
| DNATA
receivables’ to ‘Financial assets at amortised cost’.
| CONSOLIDATED
| FINANCIAL Basis of preparation
| STATEMENTS There is no material impact on dnata’s financial liabilities as the new requirements only
ADDITIONAL The consolidated financial statements have been prepared in accordance with affect the accounting for financial liabilities that are designated at fair value through
INFORMATION International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee profit or loss and dnata does not have such liabilities of significant value.
(IFRS IC) pronouncements. The consolidated financial statements are prepared under the
historical cost convention, except for those financial assets and financial liabilities that The new impairment model under IFRS 9 requires the recognition of impairment
are measured at fair value as stated in the accounting policies. provisions based on expected credit losses (ECL) rather than only incurred credit losses
as is the case under IAS 39. It applies to trade receivables and other financial assets. For
All amounts are presented in millions of UAE Dirham (“AED m”). financial assets comprising of trade receivables, dnata adopted the simplified approach
allowed under IFRS 9, under which lifetime expected loss allowance is estimated to
calculate provision. For all other financial assets, dnata follows the 12-month expected
credit loss model to calculate the impairment provision. Resulting from this change,
dnata recognised an additional impairment provision of AED 9 m in trade receivables
and AED 5 m in an investment in a joint venture with a corresponding impact in retained
earnings as at 1 April 2018.

156
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

2. Summary of significant accounting policies (continued) IFRS 16, Leases (effective from 1 January 2019)
OVERVIEW
IFRS 9, Financial Instruments (continued) IFRS 16 will result in almost all leases being recognised on the balance sheet by lessees,
EMIRATES as the distinction between operating and finance lease is removed. Under the new
IFRS 9 has substantially reformed the existing hedge accounting rules. It provides a more standard, an asset (the right to use the leased item) and a financial liability to pay rentals
DNATA
principles-based approach that aligns hedge accounting closely with risk management are recognised. Leases are capitalised by recognising the present value of the lease
policies. Currency forwards in place as at 1 April 2018 qualified as cash flow hedges, payments and showing them either as lease assets (right-of-use assets) or together with
dnata risk management strategies and hedge documentation are aligned with the property, plant and equipment. An optional exemption exists (which dnata will avail) for
GROUP
requirements of IFRS 9 and these relationships are therefore treated as continuing short-term and low-value leases.
hedges. Accordingly, there is no material impact on dnata’s hedge accounting on
FINANCIAL
INFORMATION
adoption of IFRS 9. The standard will have a significant impact on dnata’s consolidated financial statements
considering the number of operating leases in its portfolio with future minimum lease
EMIRATES IFRS 15, Revenue from Contracts with Customers payments under operating leases at 31 March 2019 amounting to AED 2.4 billion (Note
FINANCIAL 25).
COMMENTARY
IFRS 15 replaced IAS 18 which covered contracts for sale of goods and rendering of
DNATA services and IAS 11 which covered construction contracts. The consolidated statement of financial position will be impacted by the recognition of a
FINANCIAL right-of-use asset and a lease liability related to these assets. In respect of the
COMMENTARY
The new standard is based on the principle that revenue is recognised when control of a consolidated income statement, there will be an impact as the total expense is typically
EMIRATES good or service transfers to a customer – so the notion of control replaces the existing higher in the earlier years of a lease and lower in later years. Additionally, operating lease
CONSOLIDATED notion of risks and rewards. The standard provides a new five-step model that must be charges will be replaced with interest and depreciation expense. Further, operating cash
FINANCIAL
STATEMENTS applied to all contracts with customers. flows will be higher as cash payments for the lease liability will be classified within
financing activities.
| DNATA dnata applied the modified retrospective method on transition to the new standard from
| CONSOLIDATED
| FINANCIAL 1 April 2018. dnata will apply the modified retrospective method on transition to the new standard
| STATEMENTS from 1 April 2019 and comparatives will not be restated. Right-of-use assets will be
dnata’s revenue recognition policy on adoption of IFRS 15 changed with respect to sale measured at the commencement date using dnata’s incremental borrowing rates as if
ADDITIONAL
INFORMATION of travel packages where dnata acts as a principal. IFRS 15 requires that the total the new rules had always been applied, i.e. the cumulative depreciation impact from the
consideration received is allocated to the separate performance obligations based on a lease commencement date to the date of transition will be reflected in the transition
relative stand-alone selling price and revenue should be recognised on satisfaction of date measurement of right-of-use-asset. Lease liabilities will be determined based on
each performance obligation within a single contract with the customer. Since the dnata’s incremental borrowing rates and rates of exchange at the date of transition (1
change did not result in a material impact on dnata’s consolidated financial position at April 2019).
the transition date, no adjustment has been made to retained earnings as at 1 April
2018. There is no further significant change to the method or timing of revenue Upon adoption of IFRS 16 on 1 April 2019, dnata’s assets and liabilities are estimated to
recognition compared to the previous year. increase in the range of AED 1.5 - 1.8 billion and AED 1.7 - 2.0 billion respectively,
depending on the outcome of certain contracts which are in negotiation stages.
Not yet effective and have not been early adopted
There are no other new standards, amendments or interpretations that are either
At the date of authorisation of these consolidated financial statements, certain new effective or not yet effective, and would be expected to have a material impact on dnata.
accounting standards have been published that are not mandatory for the financial year
ended 31 March 2019, and have not been early adopted. The following new standard will
have an impact on dnata’s consolidated financial position and management has
performed an initial estimate of its impact.

157
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

2. Summary of significant accounting policies (continued)
OVERVIEW
Basis of consolidation
EMIRATES operating policy decisions of the investee, but is not control or joint control over those
Subsidiaries are those entities over which dnata has control. Control is exercised when
DNATA dnata 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
GROUP
are fully consolidated from the date on which control is transferred to dnata and are de-
consolidated from the date on which control ceases. Inter-company transactions,
balances and unrealised gains and losses arising on transactions between dnata and its
FINANCIAL
INFORMATION subsidiaries are eliminated.
EMIRATES The acquisition method of accounting is used to account for business combinations by
FINANCIAL
COMMENTARY
dnata. The consideration transferred for the acquisition of a subsidiary comprises the fair
value of the assets transferred, liabilities acquired, fair value of any contingent
DNATA consideration arrangements and the fair value of any pre-existing equity interest in the
FINANCIAL
COMMENTARY
subsidiary.
EMIRATES Acquisition-related costs are expensed as incurred. Identifiable assets, including
CONSOLIDATED
FINANCIAL
intangible assets acquired, liabilities and contingent liabilities, if any, incurred or
STATEMENTS assumed in a business combination, are measured initially at their fair values at the
acquisition date. Any non-controlling interest in the subsidiary is recognised on an
| DNATA
| CONSOLIDATED
acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s
| FINANCIAL proportionate share of recognised amounts of subsidiaries’ identifiable net assets.
| STATEMENTS
ADDITIONAL
Contingent consideration is classified either as equity or a financial liability. Amounts
INFORMATION classified as a financial liability are subsequently remeasured to fair value with changes in
fair value recognised in the consolidated income statement.
If the business combination is achieved in stages, the acquisition date carrying value of
dnata’s previously held equity interest in the subsidiary is remeasured at fair value at the
acquisition date. Any gains or losses arising from such remeasurement are recognised in
the consolidated income statement.
dnata treats transactions with non-controlling interests that do not result in loss of
control as transactions with the owners. A change in ownership interest results in an
adjustment between the carrying amounts of the controlling and non-controlling
interests to reflect their relative interests in the subsidiary. Any difference between
amount of the adjustment to non-controlling interests and any consideration paid is
recorded in equity.
Associates are those entities in which dnata has significant influence but not control or
joint control generally accompanying a shareholding between 20% and 50% of the
voting rights. Significant influence is the power to participate in the financial and
policies. Investments in associates are accounted for by applying the equity method and
include goodwill (net of accumulated impairment loss, if any) identified on acquisition
after initially being recorded at cost.
Joint ventures are contractual arrangements which establish joint control and where
dnata has rights to the net assets of the arrangement. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
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
after initially being recognised at cost.
When dnata’s share of losses in an equity-accounted investment equals or exceed its
interest in the entity, including any other unsecured long term receivables, dnata does
not recognise further losses, unless it has incurred obligations or made payments on
behalf of the other entity.
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.
Accounting policies of subsidiaries, associates and joint ventures have been changed
where necessary to ensure consistency with dnata’s accounting policies.
When dnata ceases to have control, any retained interest in the entity or business is
remeasured to its fair value at the date when control is lost, with the change in the
carrying amount recognised in the consolidated income statement. The fair value
becomes the initial carrying amount for the purposes of subsequent accounting for 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 or
business are accounted for as if the related assets or liabilities have been directly
disposed off. This may mean that amounts previously recognised in other
comprehensive income are 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 are reclassified to the consolidated income statement
where appropriate.

158
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

2. Summary of significant accounting policies (continued) Where functional currencies of subsidiaries are different from AED, income, other
OVERVIEW comprehensive income and cash flow statements of subsidiaries are translated into AED
Revenue at average exchange rates for the year that approximate the cumulative effect of rates
EMIRATES prevailing on the transaction dates and their assets and liabilities are translated at the
Revenue is measured at fair value of the consideration received or receivable, and exchange rates ruling at the end of reporting period. The resulting exchange differences
DNATA represents amounts receivable for goods supplied or services provided, stated net of are recognised in other comprehensive income.
discounts, returns and value added tax.
GROUP
Share of results and share of movement in other comprehensive income of investments
Revenue from airport operations which includes ground handling and cargo services is accounted for using the equity method are translated into AED at average exchange
recognised on the performance of the related service. rates for the year whereas dnata’s share of net investments is translated at the exchange
FINANCIAL
INFORMATION rate prevailing at the end of the reporting period. Translation differences relating to
Revenue from travel services includes the sale of travel holiday packages and also travel investments in associates, joint ventures and monetary assets and liabilities that form
EMIRATES individual component bookings. Where dnata acts as principal in the arrangement, the part of a net investment in a foreign operation are recognised in other comprehensive
FINANCIAL
COMMENTARY
total consideration received is treated as revenue and allocated to separate performance income. When investments in subsidiaries, associates, joint ventures or net investment in
obligations based on relative stand-alone selling prices. The allocated revenue from such a foreign operation are disposed of, the related translation differences previously
DNATA contracts is recognised on satisfaction of each performance obligation within a single recorded in equity are recognised in the consolidated income statement as part of the
FINANCIAL
COMMENTARY
contract with the customer. Where dnata acts as an agent between the service provider gain or loss on disposal.
and the end customer, net commission is recognised as revenue on satisfaction of the
EMIRATES performance obligation, i.e., on confirmation of the travel booking taking place. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are
CONSOLIDATED
FINANCIAL
treated as assets and liabilities of the foreign entity and translated at the exchange rates
STATEMENTS Revenue from the sale of goods (including in-flight catering) is recognised when the prevailing at the end of the reporting period. Exchange differences arising are
control of goods is transferred to the customer. recognised in other comprehensive income.
| DNATA
| CONSOLIDATED
| FINANCIAL Finance income and costs Property, plant and equipment
| STATEMENTS

ADDITIONAL
Interest income and costs are recognised on a time proportion basis using the effective
INFORMATION interest method.
Foreign currency translation
dnata’s consolidated financial statements are presented in UAE Dirham (“AED”), which is
also the company’s functional currency. Subsidiaries, associates and joint ventures
determine their own functional currency and items included in the financial statements
of these companies are measured using that functional currency.
Property, plant and equipment is stated at cost less accumulated depreciation and
impairment. Cost consists of the 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 to dnata 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.

Foreign currency transactions are translated into the functional currency, at the exchange Land is not depreciated. Depreciation on other items of property, plant and equipment is
rates prevailing at the transaction dates. Monetary assets and liabilities denominated in calculated using the straight line method to allocate their cost, less estimated residual
foreign currencies are translated into the functional currency at the exchange rates values, over the estimated useful lives of the assets or the lease term, if shorter. The
prevailing at the end of the reporting period. The resultant foreign exchange gains and estimated useful lives are:
losses, other than those on qualifying net investment hedges and net investment in
foreign operations which are deferred in other comprehensive income, are recognised in Buildings 15 - 33 years
the consolidated income statement. Leasehold property shorter of useful life or lease term
Plant and machinery 4 - 15 years
Office equipment and furniture 3 - 6 years
Motor vehicles 5 -10 years

159
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2. Summary of significant accounting policies (continued) Goodwill

OVERVIEW
Property, plant and equipment (continued) The goodwill represents the excess of the aggregate of the consideration transferred,
EMIRATES amount of any non-controlling interest in the acquired entity and the acquisition-date
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at fair value of any previous equity interest in the acquired entity over the fair value of the
DNATA the end of each reporting period. net identifiable assets at the date of acquisition.

GROUP
Capital projects are stated at cost. When the asset is ready for its intended use, it is Goodwill is tested for impairment annually or more frequently if events or changes in
transferred from capital projects to the appropriate category under property, plant and circumstances indicate a potential impairment and is carried at cost less accumulated
equipment and depreciated in accordance with dnata’s policies. impairment losses. For the purpose of impairment testing, goodwill is allocated to cash
FINANCIAL
INFORMATION generating unit or group of cash generating units that are expected to benefit from the
An item of property, plant and equipment is derecognised upon disposal or when no business combination in which the goodwill arose. An impairment loss is recognised
EMIRATES future economic benefits are expected from its use or disposal. Gains and losses on when the carrying value of the cash generating unit or group of cash generating units
FINANCIAL
COMMENTARY
disposals are determined by comparing proceeds with the carrying amount and are exceeds its recoverable amount. Impairment losses on goodwill are not reversed.
recognised in the consolidated income statement.
DNATA Gains and losses on disposal of an entity include the carrying amount of goodwill
FINANCIAL
COMMENTARY
Investment property relating to the entity sold.

EMIRATES Property held for long term rental yields or for capital appreciation or both, and not Other intangible assets
CONSOLIDATED
FINANCIAL
occupied by dnata, is classified as investment property.
STATEMENTS Computer software is capitalised at cost only when future economic benefits are
Investment property comprises land and buildings. Investment property is measured probable. Cost includes purchase price together with any directly attributable
| DNATA
| CONSOLIDATED
initially at its cost, including related transaction costs. The carrying amount of an expenditure.
| FINANCIAL investment property includes the cost of replacing part of an existing investment
| STATEMENTS property when incurred if the recognition criteria are met and excludes cost of day-to- In the case of internally developed computer software, development expenditure is
ADDITIONAL
day servicing. capitalised if costs can be measured reliably, the product is technically and commercially
INFORMATION feasible, future economic benefits are probable, and there exists an intent and ability to
Investment property (continued) 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
Capital projects relate to buildings under construction and are stated at cost. When the income statement as incurred.
asset is ready for its intended use, it is transferred from capital projects to buildings and
depreciated in accordance with dnata’s policies. Trade names, customer relationships and contractual rights acquired in a business
combination are recognised at fair values on acquisition date. Contractual rights also
Investment property is measured at cost less accumulated depreciation. Land is not include licenses to operate in certain airports.
depreciated. Depreciation on buildings is charged on a straight line basis over the
estimated useful life of 20 years. Intangible assets are amortised on a straight-line basis over their estimated useful lives
which are:
The assets’ useful life is reviewed, and adjusted if appropriate, at the end of each
Computer software 3 - 7 years
reporting period.
Trade names 10 years
Customer relationships 3 - 15 years
An item of investment property is derecognised upon disposal or when no future
Contractual rights over the expected term of the rights
economic benefits are expected from its use or disposal. Gains and losses on disposal
are determined by comparing proceeds with the carrying amount and are recognised in
the consolidated income statement.

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2. Summary of significant accounting policies (continued) Finance leases are capitalised at the commencement of the lease at the lower of the
OVERVIEW present value of the minimum lease payments or the fair value of the leased asset. The
Other intangible assets (continued) corresponding lease obligations are included under liabilities. Lease payments are
EMIRATES treated as consisting of capital and interest elements. The interest element is charged to
The intangible assets’ useful lives are reviewed, and adjusted if appropriate, at the end of the consolidated income statement as finance costs over the lease term so as to produce
DNATA each reporting period. 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
GROUP
An intangible asset is derecognised upon disposal or when no future economic benefits dnata’s policies.
are expected from its use or disposal. Gains and losses on derecognition are determined
by comparing proceeds with the carrying amount and are recognised in the Leases, where a significant portion of risks and rewards of ownership are retained by the
FINANCIAL
INFORMATION consolidated income statement. 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
EMIRATES Impairment of non-financial assets straight-line basis over the period of the lease.
FINANCIAL
COMMENTARY
Goodwill is not subject to amortisation and is tested annually for impairment. Other non- Inventories
DNATA financial assets are reviewed for impairment whenever events or changes in
FINANCIAL
COMMENTARY
circumstances indicate that the carrying amount may not be recoverable. An impairment Inventories are stated at the lower of cost and estimated net realisable value. Cost is
loss is recognised for the amount by which the asset’s carrying amount exceeds its determined on the weighted average cost basis except for food and beverage inventory
EMIRATES recoverable amount. The recoverable amount is the higher of an asset’s fair value less which is determined on a first-in-first-out basis.
CONSOLIDATED
FINANCIAL
costs to sell and value in use. For the purpose of assessing impairment, these assets are
STATEMENTS grouped at the lowest levels for which there are separately identifiable cash flows (cash Trade receivables
generating units). Non-financial assets other than goodwill are reviewed at the end of
| DNATA
| CONSOLIDATED
each reporting period for possible reversals of historic impairment losses. Trade receivables are initially recognised at fair value and subsequently measured at
| FINANCIAL amortised cost using the effective interest method less provision for impairment. dnata
| STATEMENTS Financial assets utilises the simplified approach which uses lifetime expected loss allowances to calculate
ADDITIONAL
impairment provision on trade receivables. In the prior year, the impairment of trade
INFORMATION Financial assets are classified in accordance with IFRS 9 as ‘Financial assets at amortised receivables was recognised based on the incurred loss model. Specific loss allowances
cost’ which consists of financial assets that are debt instruments and are intended to be are also recognised when dnata become aware of a customer experiencing financial
held to maturity on the basis of dnata’s business model. Furthermore, these instruments difficulty. Trade receivables are written off once management has determined that such
have fixed payment terms and meet the criteria for cash flow characteristics i.e. amount will not be recovered.
contractual payments of principal and interest. This category includes trade and other
receivables (excluding prepayments and advance lease rentals), short term bank deposits Cash and cash equivalents
and cash and cash equivalents. They are classified as non-current or current assets
according to their remaining maturity at balance sheet date. Cash and cash equivalents comprise all cash and liquid funds with an original maturity of
three months or less. Other bank deposits with maturities of less than a year are
Finance and operating leases classified as short term bank deposits. Bank overdrafts are shown within current
borrowings and lease liabilities in the consolidated statement of financial position.
Where property, plant and equipment has 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.

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2. Summary of significant accounting policies (continued) Actuarial gains and losses arising from changes in actuarial assumptions and experience
OVERVIEW adjustments are recognised in equity through other comprehensive income in the period
Borrowings in which they arise.
EMIRATES
Borrowings are recognised initially at fair value, net of transaction costs incurred. Income tax
DNATA Borrowings are subsequently measured at amortised cost with any difference between
the proceeds (net of transaction costs) and the redemption value recognised in the The tax expense for the year comprises current and deferred tax.
GROUP
consolidated income statement over the period of the borrowings using the effective
interest method. 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
FINANCIAL
INFORMATION Provisions subsidiaries operate and generate taxable income.

EMIRATES Provisions are recognised when dnata has a present legal or constructive obligation as a Deferred income tax is recognised in full, using the liability method, on temporary
FINANCIAL
COMMENTARY
result of past events, it is probable that an outflow of resources will be required to settle differences arising between the tax bases of assets and liabilities and their carrying
the obligation and the amount can be reliably estimated. Provisions are measured at the amounts in the consolidated financial statements. However, deferred income tax is not
DNATA present value of the expenditures expected to settle the obligation using a pre-tax rate accounted for if it arises from initial recognition of an asset or liability in a transaction
FINANCIAL
COMMENTARY
that reflects current market assessments of the time value of money and risks specific to other than a business combination that at the time of the transaction affects neither
the obligation. The increase in the provision due to passage of time is recognised as an accounting nor taxable income. Also deferred tax liabilities are not recognised if they
EMIRATES interest expense. arise from the initial recognition of goodwill in a business combination. Deferred income
CONSOLIDATED
FINANCIAL
tax is determined using tax rates (and laws) that have been enacted or substantively
STATEMENTS Retirement benefit obligations 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
| DNATA
| CONSOLIDATED
dnata operates or participates in various end of service benefit plans, which are classified or the deferred income tax asset is realised.
| FINANCIAL either as defined contribution or defined benefit plans.
| STATEMENTS
Deferred income tax is recognised on temporary differences arising on investments in
ADDITIONAL
A defined contribution plan is a pension scheme under which dnata pays fixed subsidiaries and associates, except where the timing of the reversal of the temporary
INFORMATION contributions and has no legal or constructive obligation to pay further contributions if difference is controlled by dnata and it is probable that the temporary difference will not
the fund does not hold sufficient assets to settle the benefits relating to the employees reverse in the foreseeable future.
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. Deferred income tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilised.
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 Deferred income tax assets and liabilities are offset when there is a legally enforceable
is the present value of the defined benefit obligation at the end of the reporting period right to offset current income tax assets against current income tax liabilities and when
less the fair value of plan assets at that date. The defined benefit obligation is calculated the deferred income tax assets and liabilities relate to income taxes levied by the same
by independent actuaries using the projected unit credit method. 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 present value of the defined benefit obligation is determined by discounting
estimated future cash outflows using market yields of high quality corporate bonds at
the end of the reporting period that are denominated in currency in which the benefits
will be paid and have terms approximating to the estimated term of the post-
employment benefit obligations.

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2. Summary of significant accounting policies (continued) dnata’s criteria to account for a derivative financial instrument as a hedge include:
OVERVIEW
Trade payables  the hedging relationship consists only of eligible hedging instruments and eligible
EMIRATES hedged items; and
Trade payables are recognised initially at fair value and subsequently measured at
DNATA amortised cost using the effective interest method.  at the inception of the hedging relationship there is a formal designation and
documentation of the hedging relationship, including dnata risk management
GROUP
Dividend distribution objective and strategy for undertaking the hedge, identification of the hedging
instrument, the hedged item, the nature of the risk being hedged and how dnata will
Dividend distribution to equity holders is recognised as a liability in the consolidated assess the hedging instrument's effectiveness; and
FINANCIAL
INFORMATION financial statements in the period in which the dividends are approved.
 there is an economic relationship between the hedged item and the hedging
EMIRATES Offsetting of financial assets and liabilities instrument;
FINANCIAL
COMMENTARY
Financial assets and liabilities are offset and the net amount reported in the consolidated  effect of credit risk does not “dominate the value changes” that results from the
DNATA statement of financial position only when there is a legally enforceable right to offset the economic relationship. The hedge ratio of the hedging relationship is the same as
FINANCIAL
COMMENTARY
recognised amounts and there is an intention to settle on a net basis or realise the asset that resulting from the quantity of hedged item that dnata actually hedges and the
and settle the liability simultaneously. The legally enforceable right must not be quantity of the hedging instrument that dnata actually uses to hedge that quantity
EMIRATES contingent on future events and must be enforceable in the normal course of business for hedged item.
CONSOLIDATED
FINANCIAL
and in the event of default, insolvency or bankruptcy.
STATEMENTS Changes in the fair value of derivatives that are designated and qualify as cash flow
Derecognition of financial assets and financial liabilities hedges and that prove to be highly effective in relation to the hedged risk are
| DNATA
| CONSOLIDATED recognised in other comprehensive income. When the forecasted transaction results in
| FINANCIAL Financial assets are derecognised only when the contractual rights to the cash flows the recognition of a non-financial asset or a non-financial liability, the gains and losses
| STATEMENTS expire or substantially all the risks and rewards of ownership are transferred along with previously recognised in other comprehensive income are re-classified and included in
the contractual rights to receive cash flows. Financial liabilities are derecognised only the initial carrying amount of the asset or liability. These gains and losses are ultimately
ADDITIONAL
INFORMATION when they are extinguished i.e. when the obligations specified in the contract are recognised in the consolidated income statement in the same period during which the
discharged or cancelled or expire. 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
Derivative financial instruments 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
Derivative financial instruments are initially recognised at fair value on the date a items.
derivative contract is entered into and are subsequently remeasured at their fair value. When a cash flow hedging instrument expires or is sold, terminated or exercised, or
Derivatives are designated as a hedge of the exposure to variability in cash flows that is when a hedge no longer meets the criteria for hedge accounting under IFRS 9, any
attributable to a particular risk associated with a recognised asset or liability or a highly cumulative gain or loss existing in equity at that time is retained in equity and is
probable forecast transaction (cash flow hedge). Fair values are obtained from quoted ultimately recognised in the consolidated income statement when the forecasted
market prices or dealer quotes for similar instruments, discounted cash flow models and transaction occurs. If a forecasted transaction is no longer expected to occur, the
option pricing models as appropriate. All derivatives are carried as assets when the fair cumulative gain or loss that was reported in equity is immediately transferred to
value is positive and as liabilities when the fair value is negative. the consolidated income statement. The gain or loss on the ineffective portion is
immediately recognised in the consolidated income statement.

Changes in the fair value of derivative instruments that do not qualify for hedge
accounting are recognised immediately in the consolidated income statement.

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2018-19

3. Critical accounting estimates and judgements 4. Fair value estimation

OVERVIEW
In the preparation of the consolidated financial statements, a number of estimates and The levels of fair value hierarchy are defined as follows:
EMIRATES associated assumptions have been made relating to the application of accounting
policies and reported amounts of assets, liabilities, income and expenses. The estimates Level 1: Measurement is made by using quoted prices (unadjusted) from the active
DNATA
and associated assumptions are assessed on an ongoing basis and are based on market.
historical experience and other factors, including expectations of future events that are Level 2: Measurement is made by means of valuation methods with parameters
believed to be reasonable under the circumstances. The following narrative addresses derived directly or indirectly from observable market data.
GROUP
the accounting policies that require subjective and complex judgements, often as a result Level 3: Measurement is made by means of valuation methods with parameters not
of the need to make estimates. based exclusively on observable market data.
FINANCIAL
INFORMATION
Valuation of intangible assets on acquisition Derivatives, contingent consideration and option liabilities are carried at fair value.
EMIRATES Derivatives fall into level 2 of the fair value hierarchy whereas contingent consideration
FINANCIAL For each acquisition, management assesses the fair value of intangible assets acquired. and option liabilities fall into level 3 of the fair value hierarchy.
COMMENTARY
Where an active market does not exist to value an intangible asset, fair values are
DNATA established using established valuation techniques that use estimates of future cash Derivatives comprise forward exchange contracts. The forward exchange contracts are
FINANCIAL flows and the useful life related to the asset based on management’s experience and fair valued using forward exchange rates that are quoted in an active market.
COMMENTARY
expectation at the time of acquisition. Discount rates applied to future cash flows are
EMIRATES also subject to judgement. Disclosure of the significant acquisitions undertaken by dnata The fair values of contingent consideration and option liabilities are determined by using
CONSOLIDATED is given in Note 33 to these consolidated financial statements. valuation techniques based on entity specific estimates. These estimates are not based
FINANCIAL
STATEMENTS on observable market data and hence classified under level 3 of the fair value hierarchy.
Impairment of goodwill
| DNATA The changes in the fair value of level 3 instruments are set out in Note 17.
| CONSOLIDATED
| FINANCIAL Determining whether goodwill is impaired requires an estimation of the value-in-use of
| STATEMENTS the cash generating units or group of cash generating units to which goodwill has been
allocated. The value-in-use calculation requires management to estimate the future cash
ADDITIONAL
INFORMATION flows expected to arise from the cash generating unit and use a suitable discount rate in
order to calculate present value. The estimates made in arriving at the value-in-use
calculation and associated sensitivities are set out in Note 10.

Valuation of defined benefit obligations

The present value of the defined benefit obligations is determined on an 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 reasonably possible change in these assumptions are set out in
Note 19.

164
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evenue 5. Revenue 7. Income tax expense 7. Income tax expense

OVERVIEW 2019 2018 2019 2018 2019 2018 2019 20
AED m AED m AED m AED m AED m AED m AED m AED
EMIRATES
vices Services Current income tax expense Current income tax expense 38 98 38
national Airport Operations
DNATA International Airport Operations 3,997 3,803 3,997 3,803 Deferred income tax credit Deferred income tax credit (12) (61) (12) (
el Services Travel Services 3,678 3,384 3,678 3,384
26 37 26
Airport Operations
GROUP UAE Airport Operations 3,223 3,153 3,223 3,153
The income tax expense for the
Theyear
income
can tax
be reconciled
expense fortothe year can be reconciled to
ers Others 360 445 360 445
the accounting profit before income
the accounting
tax as follows:
profit before income tax as follows:
FINANCIAL 11,258 10,785 11,258 10,785
INFORMATION
of goods Sale of goods Profit before income tax Profit before income tax 1,507 1,389 1,507 1,3
ght Catering
EMIRATES Inflight Catering 2,444 1,991 2,444 1,991
ers FINANCIAL
Others 186 155 186 155
COMMENTARY Tax calculated at domestic tax
Tax rates
calculated
applicable
at domestic
to tax rates applicable to
2,630 2,146 2,630 2,146
profits in respective tax jurisdictions
profits in respective tax jurisdictions 22 74 22
DNATA
13,888 12,931 13,888 12,931
FINANCIAL Effect of non-deductible expenses
Effect of non-deductible expenses 6 (5) 6
COMMENTARY
Effect of income exempt fromEffect
tax of income exempt from tax (7) - (7)
perating costs 6. Operating costs
EMIRATES
Re-measurement of deferredRe-measurement
tax - effect of changes
of deferred
in tax tax - effect of changes in tax
CONSOLIDATED 2019 2018 2019 2018
FINANCIAL rates rates - (25) - (
STATEMENTS AED m AED m AED m AED m
Effect of other items Effect of other items 5 (7) 5
| DNATA Income tax expense Income tax expense 26 37 26
loyee costs (see (a))
| CONSOLIDATED Employee costs (see (a)) 5,386 5,055 5,386 5,055
| FINANCIAL
ct costs
| STATEMENTS Direct costs The tax rates used for the reconciliation
The tax ratesabove
used are
for the reconciliation
rates applicable
above
to the
areprofits
the rates applicable to the pro
avel Services - Travel Services 2,476 2,135 2,476 2,135 in the respective tax jurisdictions.
in the respective tax jurisdictions.
rportADDITIONAL
Operations - Airport Operations 1,350 1,293 1,350 1,293
INFORMATION
flight Catering - Inflight Catering 1,070 843 1,070 843
hers - Others 67 130 67 130
al and lease expenses Rental and lease expenses 788 688 788 688
reciation and amortisation (see (b)) and amortisation (see (b))459
Depreciation 440 459 440
s and marketing expensesSales and marketing expenses 370 381 370 381
rmation technology infrastructure
Information
costs
technology infrastructure costs
246 210 246 210
airment of intangible assets
Impairment of intangible assets 78 - 78 -
porate overheads (see (c))Corporate overheads (see (c)) 851 703 851 703
13,141 11,878 13,141 11,878

Employee costs include AED

(a) Employee
259 m (2018:
costsAED
include
259 AED
m) in259
respect
m (2018:
of retirement
AED 259 m) in respect of retirement
efit obligations (Note 19).benefit obligations (Note 19).
Depreciation and amortisation
(b) Depreciation
of AED 87 and
m (2018:
amortisation
AED 91 of
m)AED
is included
87 m (2018:
underAED 91 m) is included under
rmation technology infrastructure
information
costs.
technology infrastructure costs.
Corporate overheads include
(c) Corporate
a net charge
overheads
of AED
include
67 m a(2018:
net charge
AED 87of m)
AEDin 67 m (2018: AED 87 m) in
ect of impairment losses respect
for tradeofreceivables.
impairment losses for trade receivables.

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8. Property, plant and equipment

OVERVIEW
Land,
EMIRATES buildings Office
and Plant equipment
DNATA
leasehold and and Motor Capital
property machinery furniture vehicles projects Total
GROUP
AED m AED m AED m AED m AED m AED m

FINANCIAL
Cost
INFORMATION 1 April 2017 960 1,980 1,460 166 103 4,669
Additions 52 160 62 17 43 334
EMIRATES
FINANCIAL Transfer from capital projects 65 24 21 - (110) -
COMMENTARY
Disposals / write-offs (6) (48) (147) (10) - (211)
DNATA Currency translation differences 44 52 25 2 - 123
FINANCIAL
COMMENTARY
31 March 2018 1,115 2,168 1,421 175 36 4,915
Accumulated depreciation
EMIRATES
CONSOLIDATED 1 April 2017 442 1,142 1,161 77 - 2,822
FINANCIAL Charge for the year 59 165 123 21 - 368
STATEMENTS
Disposals / write-offs (6) (46) (142) (6) - (200)
| DNATA Currency translation differences 16 26 22 - - 64
| CONSOLIDATED
| FINANCIAL 31 March 2018 511 1,287 1,164 92 - 3,054
| STATEMENTS
Net book amount at
ADDITIONAL 31 March 2018 604 881 257 83 36 1,861
INFORMATION

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8. Property, plant and equipment (continued)

OVERVIEW
Land,
EMIRATES buildings Office
and Plant equipment
DNATA
leasehold and and Motor Capital
property machinery furniture vehicles projects Total
GROUP
AED m AED m AED m AED m AED m AED m
Cost
FINANCIAL
INFORMATION 1 April 2018 1,115 2,168 1,421 175 36 4,915
Acquisitions (Note 33) 113 51 6 1 10 181
EMIRATES
FINANCIAL Additions 11 99 110 17 224 461
COMMENTARY
Transfer from capital projects 31 94 19 6 (150) -
DNATA Disposals / write-offs (7) (90) (24) (9) (1) (131)
FINANCIAL
COMMENTARY Currency translation differences (40) (81) (25) (5) (2) (153)
31 March 2019 1,223 2,241 1,507 185 117 5,273
EMIRATES
CONSOLIDATED Accumulated depreciation
FINANCIAL 1 April 2018 511 1,287 1,164 92 - 3,054
STATEMENTS
Charge for the year 61 184 120 20 - 385
| DNATA Disposals / write-offs (6) (84) (23) (8) - (121)
| CONSOLIDATED
| FINANCIAL Currency translation differences (25) (38) (22) - - (85)
| STATEMENTS
31 March 2019 541 1,349 1,239 104 - 3,233
ADDITIONAL Net book amount at
INFORMATION
31 March 2019 682 892 268 81 117 2,040

The net book amount of property, plant and equipment includes AED 76 m (2018: AED 55 m) in respect of plant and machinery held under
finance leases, of which AED 34 m (2018: AED 26 m) was acquired during the year (Note 23).

The net book amount of property, plant and equipment includes an amount of AED 22 m (2018: AED 27 m) in respect of assets provided
as security against term loans.

Land of AED 20 m (2018: AED 7 m) is carried at cost and is not depreciated.

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9. Investment property
OVERVIEW

EMIRATES Land Buildings Total

AED m AED m AED m
DNATA Cost
1 April 2017 62 196 258
GROUP Additions 37 74 111
31 March 2018 99 270 369
FINANCIAL
INFORMATION
Accumulated depreciation
1 April 2017 - 21 21
EMIRATES Charge for the year - 10 10
FINANCIAL
COMMENTARY 31 March 2018 - 31 31
Net book amount at
DNATA
FINANCIAL 31 March 2018 99 239 338
COMMENTARY
Cost
EMIRATES 1 April 2018 99 270 369
CONSOLIDATED
FINANCIAL Additions - 20 20
STATEMENTS 31 March 2019 99 290 389
| DNATA Accumulated depreciation
|
|
CONSOLIDATED 1 April 2018 - 31 31
FINANCIAL
| STATEMENTS Charge for the year - 13 13
ADDITIONAL
31 March 2019 - 44 44
INFORMATION Net book amount at
31 March 2019 99 246 345

Investment property includes an amount of AED 20 m (2018: Nil) in respect of projects under construction.

Investment property is pledged as security against term loans (Note 22).

Investment property comprises rental property in Dubai. The fair value of investment property as at 31 March 2019 is AED 455 m (2018:
AED 461 m), which was determined based on internal valuations as there is no active market for such properties. The fair value has
been computed by discounting the contractual future lease rental income at a discount rate of 6% (2018: 6%) commensurate to the
borrowing rate. These estimates are not based on observable market data and hence classified under level 3 of the fair value hierarchy.

Revenue from rental income earned during the year amounting to AED 31 m (2018: AED 23 m) is recognised in the consolidated
income statement as revenue from 'Services-Others'.

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10. Intangible assets

OVERVIEW
Computer Trade Customer Contractual
EMIRATES Goodwill software names relationship rights Total
AED m AED m AED m AED m AED m AED m
DNATA
Cost
1 April 2017 1,909 480 110 487 613 3,599
GROUP Acquisitions 9 - - 5 - 14
Additions - 92 - 16 - 108
FINANCIAL Disposals / write-offs - (2) - - - (2)
INFORMATION
Others 15 3 - - - 18
EMIRATES Currency translation differences 132 15 14 13 47 221
FINANCIAL
31 March 2018 2,065 588 124 521 660 3,958
COMMENTARY
Accumulated amortisation and impairment
DNATA
FINANCIAL
1 April 2017 - 332 35 106 494 967
COMMENTARY Charge for the year - 52 11 48 42 153

EMIRATES
Disposals / write off - (2) - - - (2)
CONSOLIDATED Currency translation differences - 8 5 4 35 52
FINANCIAL
STATEMENTS 31 March 2018 - 390 51 158 571 1,170
Net book value at 31 March 2018 2,065 198 73 363 89 2,788
| DNATA
| CONSOLIDATED Cost
| FINANCIAL
| STATEMENTS
1 April 2018 2,065 588 124 521 660 3,958
Acquisitions (Note 33) 320 26 4 54 - 404
ADDITIONAL
INFORMATION Additions - 226 - - - 226
Disposals / write-offs - (1) - - - (1)
Currency translation differences (119) (10) (10) (18) (33) (190)
31 March 2019 2,266 829 118 557 627 4,397
Accumulated amortisation and impairment
1 April 2018 - 390 51 158 571 1,170
Charge for the year - 69 11 45 23 148
Impairment loss 66 - - 12 - 78
Currency translation differences - (2) (3) (6) (27) (38)
31 March 2019 66 457 59 209 567 1,358
Net book value at 31 March 2019 2,200 372 59 348 60 3,039

Computer software includes an amount of AED 209 m (2018: AED 40 m) in respect of projects under implementation.

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10. Intangible assets (continued)

OVERVIEW
For the purpose of carrying out the impairment test of goodwill, the recoverable amounts for cash generating units or groups of cash
generating units have been determined on the basis of value-in-use calculations using cash flow forecasts approved by management
EMIRATES
covering a three year period. Cash flows beyond the three year period have been extrapolated using terminal growth rates stated below.
DNATA
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 terminal growth rate does not exceed
GROUP the long term average growth rate for the markets in which the cash generating units or groups of cash generating units operate. The
goodwill allocated to cash generating units or groups of cash generating units and the key assumptions used in the value-in-use calculations
FINANCIAL are as follows:
INFORMATION
Cash generating unit / Group of cash Location Goodwill Discount Terminal
EMIRATES generating units 2019 2018 rate growth rate
FINANCIAL
COMMENTARY AED m AED m % %
Airport operations USA 308 308 11.0 2.0
DNATA
FINANCIAL Airport operations Switzerland 250 260 8.5 2.5
COMMENTARY
Airport operations Singapore 92 95 7.0 3.0
EMIRATES Airport operations Netherlands 59 65 8.8 1.5
CONSOLIDATED
FINANCIAL
Airport operations Brazil 43 49 16.0 2.5
STATEMENTS Airport operations Australia 26 28 10.0 2.5

| DNATA Airport operations Czech Republic 20 22 8.5 1.5

| CONSOLIDATED Inflight catering Australia 316 141 9.0 1.5
| FINANCIAL
| STATEMENTS Inflight catering Romania 111 120 10.0 1.5
Inflight catering Italy 120 129 8.0 1.5
ADDITIONAL
INFORMATION Inflight catering USA 40 - 9.0 1.5
Online travel services UK 444 481 8.5 1.5
Travel services UK 170 183 8.5 1.5
Travel services Germany 42 - 8.0 2.0
Others Various 159 184 9.0 - 12.0 1.5 - 3.0
2,200 2,065

Goodwill pertaining to Airport Operations, USA includes AED 300 m (2018: AED 300 m) for Ground Services International Inc. / Metro Air
Service Inc. and AED 8 m (2018: AED 8 m) for ALX Cargo Centre IAH LLC. The key assumptions used in the value-in-use calculations for both
these cash generating units are similar.
Goodwill pertaining to Travel services, UK includes AED 121 m (2018: AED 130 m) for the Gold Medal group (Gold Medal Travel Group
Limited and Airline Network Limited) and AED 49 m (2018: AED 53 m) for the Stella Travel group (Stella Travel Services (UK) Ltd and Stella
Global UK Ltd). The key assumptions used in the value-in-use calculations for both these groups of cash generating units are similar.

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 the terminal growth rate or a 1% increase in the discount rate.

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11. Investments in subsidiaries, associates and joint ventures

OVERVIEW
Principal subsidiaries

EMIRATES Percentage Country of

of equity incorporation
DNATA owned Principal activities and principal operations
dnata Travel (UK) Limited 100 Travel agency United Kingdom
GROUP dnata Inc. 100 Ground handling services Philippines
Ground, cargo handling and catering
FINANCIAL dnata Singapore Pte Ltd 100 services Singapore
INFORMATION
Dnata Switzerland AG 100 Ground and cargo handling services Switzerland
dnata Limited 100 Ground and cargo handling services United Kingdom
EMIRATES
FINANCIAL Alpha Flight Services Pty Ltd 100 Inflight catering services Australia
COMMENTARY Alpha In-Flight US LLC 100 Inflight catering services United States of America
DNATA
dnata srl (formerly Air Chef srl) 100 Inflight catering services Italy
FINANCIAL dnata Catering s.r.l. 64.2 Inflight catering services Romania
COMMENTARY
dnata International Pvt Ltd 100 Travel agency India
EMIRATES
Travel Republic Limited 100 Online travel services United Kingdom
CONSOLIDATED En Route International Limited 100 Bakery and food solutions United Kingdom
FINANCIAL
Gold Medal Travel Group Limited 100 Travel agency United Kingdom
STATEMENTS
dnata Travel Inc 100 Travel services Philippines
| DNATA Travel 2 Limited 100 Travel agency United Kingdom
| CONSOLIDATED
| FINANCIAL Travelbag Limited 100 Travel agency United Kingdom
| STATEMENTS The Global Travel Group Limited 100 Travel agency United Kingdom
dnata Airport Services Pty Ltd 100 Ground and cargo handling services Australia
ADDITIONAL
INFORMATION dnata BV 100 Ground and cargo handling services The Netherlands
RM Servicos Auxiliares de Transporte Aereo Ltda 70 Ground handling services Brazil
Airport Handling SpA 70 Ground handling services Italy
Airport Handling Services Australia Pty Ltd 100 Ground handling services Australia
Transecure LLC 100 Investment property United Arab Emirates
Ground Services International Inc. 100 Ground handling services United States of America
Metro Air Service Inc. 100 Mail handling services United States of America
Air Dispatch (CLC) s.r.o 95 Load control services Czech Republic
Air Dispatch (CLC) Spolka z.o.o 95 Load control services Poland
Oman United Agencies Travel LLC 76.9 Travel agency Oman

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11. Investments in subsidiaries, associates and joint ventures (continued)

OVERVIEW Percentage Country of
of equity incorporation
EMIRATES owned Principal activities and principal operations
Principal subsidiaries
DNATA
Acquired during the previous year:
GROUP ALX Cargo Centre IAH LLC 100 Cargo handling services United States of America
Acquired during the year:
FINANCIAL Tropo GmbH 100 Travel services Germany
INFORMATION
BD4travel Limited 73.4 Travel technology services Germany
EMIRATES 121 Group International LLC 85 Inflight catering services United States of America
FINANCIAL Qantas Catering Group Ltd 100 Inflight catering services Australia
COMMENTARY
Snap Fresh Pty Ltd 100 Inflight catering services Australia
DNATA
FINANCIAL None of the subsidiaries have non-controlling interests that are material to dnata.
COMMENTARY
Principal associates
EMIRATES
Gerry's Dnata (Private) Ltd 50 Aircraft and cargo handling services Pakistan
CONSOLIDATED
FINANCIAL Guangzhou Baiyun International Airport Ground
STATEMENTS
Handling Services Co. Ltd 20 Aircraft handling services P. R. China
| DNATA Canary Topco Ltd 9.1 Information technology services United Kingdom
| CONSOLIDATED
| FINANCIAL Principal joint ventures
| STATEMENTS
Super Bus Tourism LLC (see (a) below) 75 Travel services United Arab Emirates
ADDITIONAL dnata Travel Company Limited (see (a) below) 70 Travel agency Saudi Arabia
INFORMATION
Transguard Group LLC 50 Security services United Arab Emirates
Alpha LSG Ltd 50 Inflight catering services United Kingdom
Imagine Enterprises Limited (see (a) below) 51 Travel agency United Kingdom
Acquired during the previous year:
Destination Asia Group (see (b) below) 51 Travel services Asia Pacific

(a) Although the percentage of equity owned in Super Bus Tourism LLC, dnata Travel Company Limited and Imagine Enterprises Limited is
75%, 70% and 51% respectively, they are subject to joint control.
(b) During the previous year, dnata acquired 25% beneficial interest in a number of entities forming part of Destination Asia Group
operating in 8 countries in the Asia Pacific region.

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Investments in subsidiaries,
11. Investments
associates and
in subsidiaries,
joint ventures
associates
(continued)
and joint ventures (continued) No individual associate is material
No individual
to dnata.
associate
The aggregate
is material
financial
to dnata.
information
The aggregate
of financial information
OVERVIEW associates is set out below: associates is set out below:
vement of investments accounted
Movementfor
of investments
using the equity
accounted
method
for using the equity method
EMIRATES
2019 2018 2019 2018 2019 2018 2019 2
AED m AED m AED m AED m AED m AED m AED m AED
DNATA

ance brought forward Balance brought forward 473 407 473 407 Share of results of associatesShare of results of associates (5) 32 (5)
act onGROUP
adoption of IFRS 9Impact on adoption of IFRS 9 (5) - (5) -
Share of other comprehensive
Share
income
of other comprehensive income - 52 -
usted balance brought forward
Adjusted balance brought forward 468 407 468 407
FINANCIAL Share of total comprehensive
Share
income
of total
of associates
comprehensive income of
(5)associates 84 (5)
itionsINFORMATION Additions 26 8 26 8
e of results Share of results 131 126 131 126
Aggregate carrying value ofAggregate
investments
carrying
in associates
value of investments
13 in associates
57 13
e of other comprehensive
EMIRATES
FINANCIAL
Share
income
of other comprehensive income - 49 - 49
e of other equity movements
COMMENTARY Share of other equity movements - 3 - 3 No individual joint venture isNo
material
individual
to dnata.
joint venture
The aggregate
is material
financial
to dnata.
information
The aggregate
of financial informatio
dendsDNATA Dividends (67) (89) (67) (89) joint ventures is set out below:
joint ventures is set out below:
osalsFINANCIAL Disposals (20) - (20) -
COMMENTARY
assification due to change
Reclassification
in ownership interest
due to change in ownership 2019 2018 2019 2
(23)interest - (23) -
AED m AED m AED m AED
ency EMIRATES
translation differences
CONSOLIDATED
Currency translation differences (12) 15 (12) 15
assification to asset held Reclassification
FINANCIAL for sale to asset held for sale - (46) - (46)
STATEMENTS
ance carried forward Balance carried forward 503 473 503 473 Share of results of joint ventures
Share of results of joint ventures 136 94 136
| DNATA Share of other comprehensive
Share
income
of other comprehensive income - (3) -
| CONSOLIDATED
posal| FINANCIAL
of joint ventures during
Disposal
theofyear
joint ventures during the year Share of total comprehensive
Share
income
of total
of joint
comprehensive
ventures income136
of joint ventures
91 136
| STATEMENTS
ng the year, dnata sold During
its interest
the in
year,
joint
dnata
ventures
sold dnata
its interest
Newrest
in joint
(Pty)ventures
in Southdnata Newrest (Pty) in South
ca and Al Tawfeeq Travel
ADDITIONAL Africa
WLLand
in Qatar.
Al Tawfeeq
These Travel
disposals
WLLdid
in Qatar.
not result
These
in disposals
any did not result in any Aggregate carrying value ofAggregate
investments
carrying
in value of investments in
ificant gain or loss.
INFORMATION
significant gain or loss. joint ventures joint ventures 490 416 490 4
posal of asset held for sale
Disposal of asset held for sale
ng the year, the sale of During
dnata's the
investment
year, theinsale
Hoggof dnata's
Robinsoninvestment
Group ("HRG")
in Hogg
plcRobinson Group ("HRG") plc
pleted for a consideration
completed
of AED 412
for m.
a consideration
A net gain ofofAED
AED321
412mm.
is A
included
net gain
in of AED 321 m is included in
er operating income. TheOther
investment
operating
was income.
classifiedThe
as investment
an asset held
was
forclassified
sale in the
as an asset held for sale in the
ious year. previous year.

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 THE EMIRATES GROUP
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2018-19

Advance lease rentals 12. Advance lease rentals dnata uses the lifetime expected
dnata
loss
uses
allowance
the lifetime
to measure
expectedthe
loss
expected
allowance
credit
to measure
losses the expected credit lo
OVERVIEW
2019 2018 2019 2018 on its trade receivables. The impairment
on its trade charge
receivables.
on trade
The receivables
impairment recognised
charge on trade
in thereceivables recognised in
AED m AED m AED m AED m consolidated income statement
consolidated
during the
income
year primarily
statementrelates
duringtothe
travel
yearagencies,
primarily relates to travel agenc
EMIRATES
airlines and other customers airlines
who areand
in difficult
other customers
economicwho
situations
are in and
difficult
are unable
economic
to situations and are unabl
nce brought forward Balance brought forward 46 42 46 42 meet their obligations. This charge
meet their
is included
obligations.
in operating
This charge
costs.is Amounts
included charged
in operating
to costs. Amounts charge
DNATA
tions during the year Additions during the year 6 6 6 6 the provision account are written
the provision
off when account
there is no
areexpectation
written off when
of further
thererecovery.
is no expectation of further recove
ge for the year Charge for the year (4) (3) (4) (3)
GROUP Expected credit losses for financial
Expected
assets
credit
within
losses
trade
for financial
and otherassets
receivables
within are
trade
less
and other receivables are
ency translation differences
Currency translation differences - 1 - 1
than 1% as the balances are held
thanwith
1% as
companies
the balances
withare
high
held
credit
withratings
companies
and are
with
short
high credit ratings and are s
nce carried forward Balance carried forward 48 46 48 46
FINANCIAL
term in nature and no significant
termbalances
in natureare
andoverdue.
no significant balances are overdue.
INFORMATION
ance lease rentals will be Advance
charged to
lease
therentals
consolidated
will be charged to the consolidated
Movements in the provision for
Movements
impairment
in the
of trade
provision
receivables
for impairment
are as follows:
of trade receivables are as follows:
me statement
EMIRATES as follows: income statement as follows:
hin one year (Note 14) Within one year (Note 14)
FINANCIAL 3 3 3 3 2019 2018 2019 2
COMMENTARY
r one year Over one year 45 43 45 43 AED m AED m AED m AE
DNATA
nventories
FINANCIAL
13. Inventories Balance brought forward Balance brought forward 129 55 129
COMMENTARY
Impact on adoption of IFRS 9Impact on adoption of IFRS 9 9 - 9
EMIRATES 2019 2018 2019 2018
CONSOLIDATED AED m AED m AED m AED m Adjusted balance brought forward
Adjusted balance brought forward 138 55 138
FINANCIAL
STATEMENTS Charge for the year Charge for the year 76 95 76
d and beverages Food and beverages 101 45 101 45 Unused amounts reversed Unused amounts reversed (9) (9) (9)
| DNATA
es and consumables Spares and consumables 32 31 32 31
| CONSOLIDATED Amounts written off as uncollectible
Amounts written off as uncollectible (39) (16) (39)
er | FINANCIAL Other 10 11 10 11 Currency translation differences
Currency translation differences (4) 4 (4)
| STATEMENTS
143 87 143 87 Balance carried forward Balance carried forward 162 129 162 1
ADDITIONAL
TradeINFORMATION
and other receivables
14. Trade and other receivables The maximum exposure to The
credit
maximum
risk of exposure
trade andtoother
creditreceivables
risk of trade
(excluding
and other receivables (exclud
prepayments) at the reportingprepayments)
date is the carrying
at the reporting
value of each
dateclass
is theofcarrying
receivable.
value of each class of receivable.
2019 2018 2019 2018
AED m AED m AED m AED m The ageing of trade receivables
Thethat
ageing
are past
of trade
due receivables
but not impaired
that are
is as
past
follows:
due but not impaired is as follows:

e receivables - net of provision

Trade receivables - net of provision 1,980 1,950 1,980 1,950 2019 2018 2019 2
AED m AED m AED m AE
ayments Prepayments 524 529 524 529
ted parties (Note 31) Related parties (Note 31) 424 484 424 484 Below 3 months Below 3 months 943 883 943 8
3-6 months 3-6 months 167 118 167 1
ance lease rentals (Note 12)
Advance lease rentals (Note 12) 3 3 3 3
Above 6 months Above 6 months 179 230 179 2
osits and other receivables
Deposits and other receivables 794 661 794 661
1,289 1,231 1,289 1,2
3,725 3,627 3,725 3,627
For further details on credit risk
Formanagement,
further detailsrefer
on credit
to Note
risk32.
management, refer to Note 32.
Receivables over one year
Less: Receivables over one year (114) (134) (114) (134)
3,611 3,493 3,611 3,493
receivables over one yearThe
include
receivables
preference
over shares
one year
of AED
include
97 m
preference
(2018: AED
shares
95 m)of AED 97 m (2018: AED 95 m)
ed by an associate company
issued
andby
a joint
an associate
venture,company
which areand
long
a term
joint venture,
in nature.which are long term in nature.

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 THE EMIRATES GROUP
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2018-19

Capital 15. Capital 17. Trade and other payables

17. Trade and other payables
OVERVIEW
Capital
tal represents the permanent represents
capital the permanent capital of dnata.
of dnata. 2019 2018 2019 2
EMIRATES AED m AED m AED m AE
Other reserves 16. Other reserves
DNATA
Trade payables and accruals Trade payables and accruals 2,763 2,758 2,763 2
Translation Translation Deferred revenue 847
Deferred revenue 847 793
reserve Other reserve
Total Other Total
GROUP Employee leave pay Employee leave pay 229 236 229
AED m AED m AEDmm
AED AED m AED m
Related parties (Note 31) Related parties (Note 31) 70 102 70
pril 2017 1 April 2017 (366) 11 (366)
(355) 11 (355)
FINANCIAL Customer advances Customer advances 43 52 43
ency INFORMATION Currency translation differences
translation differences 204 - 204
204 - 204
Dividend payable Dividend payable 500 1,000 500 1
investment hedge (Note 22)Net investment hedge (Note(9) 22) - (9)
(9) - (9)
EMIRATES Other payables Other payables 105 70 105
flowFINANCIAL
hedges Cash flow hedges - 1 1- 1 1
COMMENTARY 4,557 5,011 4,557 5,
Transferred
sferred to consolidated income to consolidated income
statement - statement
(8) (8)- (8) (8)
Less: Payables over one year Less: Payables over one year (198) (163) (198)
e of other
DNATA
comprehensiveShare
FINANCIAL
of other
income of comprehensive income of 4,359 4,848 4,359 4,
stments investments
accounted for using
COMMENTARY accounted for using the equity
the equity
hod, net of deferred tax method, net of deferred tax 7 - 77 - 7
EMIRATES Revenue recognised during Revenue
the yearrecognised
includes AED during
752 the year includes
m which AED 752
was included in m which was include
ognised Recognised
in other comprehensive
CONSOLIDATED in other comprehensive
income 202 income
(7) 202
195 (7) 195 'Deferred revenue'
FINANCIAL 'Deferred revenue' and 'Customer advances' as atand
31 'Customer advances' as at 31 March 2018.
March 2018.
e of other equity
STATEMENTS Share
movement of of other equity movement of
stment investment
accounted for using accounted for using the equity
the equity The payables
The payables over one year include over
the non one year
current include
portion theacquisition
of the non current portion of the acquisition re
related
| DNATA
hod | CONSOLIDATED method - 3 3- 3 3 deferred / contingent consideration and the fair value of options issued to acquireof options issued to ac
deferred / contingent consideration and the fair value
| FINANCIAL
March 2018
| STATEMENTS 31 March 2018 (164) 7 (164)
(157) 7 (157) additional
additional interests in subsidiaries. interests
It also in subsidiaries.
includes It alsoportion
the non-current includes
of the
the non-current portion o
Currency translation differences
ency translation differences (197) - (197)
(197) - (197) deferred revenue. deferred revenue.
ADDITIONAL
investment Net investment hedge (Note 4
hedge (Note 22) 22) - 44 - 4
INFORMATION
Theconsideration
The movements in contingent movements in contingent
and options toconsideration and options to acquire non-contro
acquire non-controlling
flow hedges Cash flow hedges - (1) (1)- (1) (1) interests is as follows:
interests is as follows:
Transferred
sferred to consolidated income to consolidated 40
statement income statement
6 4640 6 46
2019 2018 2019 2
Recognised
ognised in other comprehensive in other comprehensive
income (153) income
5 (153)
(148) 5 (148)
AED m AED m AED m AE
sfer to retained earnings Transfer to retained earnings- (6) (6)- (6) (6)
March 2019 31 March 2019 (317) 6 (317)
(311) 6 (311) Balance brought forward Balance brought forward 17 30 17
Payments Payments - (13) -
Additions Additions 52 - 52
Balance carried forward Balance carried forward 69 17 69

Fair value
Fair value remeasurement of these remeasurement
liabilities of these
did not result in anyliabilities
significantdidchange.
not result in any significant change

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 THE EMIRATES GROUP
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2018-19

rovisions 18. Provisions Funded schemes Funded schemes

OVERVIEW a) Parent company a) Parent company
2019 2018 2019 2018
EMIRATES AED m AED m AED m AED m Senior
Senior employees based in the UAEemployees
participate based in the UAE
in a defined participate
benefit in scheme
provident a defined benefit provident sch
to which dnata contributes a specified percentage of basic salary based upon of
to which dnata contributes a specified percentage thebasic salary based upon
-current Non-current
DNATA employee’s
employee’s grade and duration grade
of service. and duration
Amounts of service.
contributed Amountsin contributed
are invested a are invested
ement benefit obligationsRetirement
(Note 19) benefit obligations (Note 19)582 549 582 549
trustee administered scheme and accumulate
trustee administered scheme and accumulate along with returns earned on along with returns earned
r provisions
GROUP (Note 20) Other provisions (Note 20) 16 13 16 13
investments. Contributions investments.
are made onContributions
a monthly are
basismade on a monthly
irrespective of fund basis irrespective of
598 562 598 562
performance and are not pooled, but are separately identifiable and attributable identifiable
performance and are not pooled, but are separately to and attributab
ent FINANCIAL Current
INFORMATION each participant.
each participant. The fund comprises a diverseThe
mixfund comprises
of funds a diverse mix
and investment of funds and investment decis
decisions
r provisions (Note 20) Other provisions (Note 20) 90 47 90 47
are controlled directly
are controlled directly by the participating employees.by the participating employees.
EMIRATES 90 47 90 47
FINANCIAL
COMMENTARY 688 609 688 609 Benefits receivable under theBenefits receivable
provident scheme under the provident
are subject to vestingscheme are subject
rules, which are to vesting rules, which
dependent
dependent upon a participating upon alength
employee's participating employee's
of service. If at thelength of service. If at the time
time an
Retirement 19. Retirement benefit obligations
DNATA benefit obligations
employee leaves employment, employee leaves employment,
the accumulated the accumulated
vested amount, vested amount, including investm
including investment
FINANCIAL
cordance In accordance
with the provisions
COMMENTARY of IAS 19, with the provisions
management of IAS out
has carried 19, management
an exercise tohas carried out an exercise to returns
returns is less than the end of is less
service thanthat
benefits the would
end of have
service
beenbenefits that
payable towould
that have been payable to
present value of itsassess
s theEMIRATES thebenefit
defined presentobligations
value of itsatdefined benefit
31 March 2019obligations
in respect at 31 March 2019 in respect employee
employee under relevant local under
regulations, relevant
dnata pays local regulations,
the shortfall dnata
amount pays the
directly to shortfall amount direct
mployees' of benefits
end of service
CONSOLIDATED employees' end under
payable of service benefits
relevant localpayable underand
regulations relevant local regulations and the
the employee. However, if the employee. However,
accumulated if the accumulated
vested amount vested
exceeds the end amount exceeds the end of se
of service
FINANCIAL
actual arrangements. contractual arrangements.
STATEMENTS benefits that would have beenbenefits
payablethat would
to an have been
employee underpayable
relevanttolocal
an employee under relevant local regulat
regulations,

The liabilities recognised the employee receives either the employee

seventy five orreceives either percent
one hundred seventy five or one
of their fundhundred
balance percent of their fund bal
iabilities recognised in the
| DNATA consolidated statementinofthe consolidated
financial positionstatement
are: of financial position are:
| CONSOLIDATED depending on their length ofdepending on their
service. Vested length
assets of scheme
of the service. Vested
are not assets of the
available to scheme are not availab
| FINANCIAL
2019 2018 2019 2018 dnata or its creditors in any circumstances.
dnata or its creditors in any circumstances.
| STATEMENTS
AED m AED m AED m AED m
ADDITIONAL Funded schemes Theand
The present value of obligations present valueof
fair value ofplan
obligations and
assets are asfair value of plan assets are as follows:
follows:
ded schemes
INFORMATION
Present
ent value of defined benefit value of defined benefit obligations
obligations 704 731 704 731
2019 2018 2019 2
Fair value of plan assets Less: Fair value of plan assets (652) (661) (652) (661)
AED m AED m AED m AE
52 70 52 70
Present value of funded defined Present value
benefit of funded defined benefit obligations
obligations 143 139 143
nded schemes Unfunded schemes
Less: Fair value of plan assets Less: Fair value of plan assets (142) (139) (142) (
Present
ent value of defined benefit value of defined benefit obligations
obligations 530 479 530 479
1 - 1

Provision statement
ision recognised in consolidated recognisedof
in consolidated statement of The assessment of the presentThevalue
assessment of the
of defined present
benefit value ofassumed
obligations defined benefit
expectedobligations assumed expe
ncial position financial position 582 549 582 549 salary
salary increases averaging 3.0% increases
(2018: 3.0%) averaging 3.0% rate
and a discount (2018:
of 3.0%) and a discount
3.8% (2018: 4.0%) rate of 3.8% (2018: 4
per of
per annum. The present values annum. The present
the defined benefitvalues of the at
obligations defined benefit
31 March 2019obligations at 31 March
were computed
were computed using the actuarial using
assumptions set the
out actuarial
above. assumptions set out above.

176
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Retirement benefit obligations (continued) The movement in the presentThe

value of defined
19. Retirement benefit obligations (continued) movement inbenefit obligations
the present ofdefined
value of the Swiss plan is:
benefit obligations of the Swiss plan
iability of AED
OVERVIEW 1m (2018:The
Nil)liability
represents the1m
of AED amount
(2018:that
Nil)will not be settled
represents from that will not be settled from
the amount
assets and is calculated plan
as the excess ofisthe present as
value of the defined benefit value of the defined benefit 2019 2018 2019 2
assets and calculated the excess of the present
EMIRATES
ation for an individual employee AED m AED m AED m AE
obligationoverfor the fair value employee
an individual of that employee's
over the plan assetsof that employee's plan assets
fair value
e end of the reporting period.
at the end of the reporting period. Balance brought forward 264 238
DNATA Balance brought forward 264
ributions received include the transferreceived
Contributions of accumulated benefits
include the from
transfer of unfunded
accumulated benefits from unfunded Service cost 14 14
Service cost 14
mes. GROUP schemes. Interest cost 2 2
Interest cost 2
arial gains and losses andActuarial
expected returns
gains andon planand
losses assets are notreturns
expected calculated given
on plan assets are not calculated given Remeasurement (gain) / loss Remeasurement (gain) / loss (7) 1 (7)
investment
FINANCIALdecisions relating to plan assets are under the direct control of
that investment decisions relating to plan assets are under the direct control of Employee contributions 8 8
INFORMATION Employee contributions 8
cipating employees. participating employees. Benefits paid (19) (9)
Benefits paid (19)
EMIRATES
movement in the fair value ofmovement
the plan assets Currency translation differences (8) 10
FINANCIAL The in theis:fair value of the plan assets is: Currency translation differences (8)
COMMENTARY
2019 2018 Balance carried forward Balance carried forward 254 264 254
2019 2018
DNATA AED m AED m AED m AED m
FINANCIAL
The movement in the fair value ofmovement
The the plan assets
in theoffair
thevalue
Swissofplan
the is:
plan assets of the Swiss plan is:
nce brought forward
COMMENTARY
Balance brought forward 139 128 139 128
ributions received Contributions received 20 18 20 18 2019 2018
EMIRATES 2019 2
CONSOLIDATED
ge inFINANCIAL
fair value Change in fair value (1) 14 (1) 14 AED m AED m AED m AE
fits paid
STATEMENTS
Benefits paid (16) (21) (16) (21) Balance brought forward Balance brought forward 208 184 208
nce |carried
DNATA forward Balance carried forward 142 139 142 139
| CONSOLIDATED Expected return on plan assets
Expected return on plan assets 1 1 1
| FINANCIAL Employer contributions 11 11
ubsidiaries
| STATEMENTS b) Subsidiaries Employer contributions 11
Employee contributions Employee contributions 8 8 8
wiss plan (i) Swiss plan
ADDITIONAL
Currency translation differences
Currency translation differences (8) 8 (8)
oyeesINFORMATION
of a subsidiary inEmployees
Switzerland
of participate
a subsidiaryin ina Switzerland
defined benefit plan ("the
participate in a defined benefit plan ("the Remeasurement Remeasurement
s plan"). The Swiss plan isSwiss
funded by way
plan"). TheofSwiss
contribution to an insurance
plan is funded by way ofpolicy.
contribution to an insurance policy. - Return on plan assets - Return on plan assets 15 5 15
present value of obligations
Theand fair value
present valueof
ofplan assets are
obligations andasfair
follows:
value of plan assets are as follows: Benefits paid Benefits paid (19) (9) (19)
Balance carried forward Balance carried forward 216 208 216
2019 2018 2019 2018
AED m AED m AED m AED m
ent value of funded defined benefit
Present obligations
value 254
of funded defined benefit obligations 264 254 264
Fair value of plan assets Less: Fair value of plan assets (216) (208) (216) (208)
38 56 38 56

actuarial valuation for theThe

Swiss plan included
actuarial valuationassumptions relating
for the Swiss to the discount
plan included assumptions relating to the discount
of 0.8% (2018: 0.7%) and rate
expected salary
of 0.8% increases
(2018: of 1.0%
0.7%) and (2018:salary
expected 1.0%)increases
per annum.
of 1.0% (2018: 1.0%) per annum.

177
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

19. Retirement
Retirement benefit obligations benefit obligations (continued)
(continued) Theofmovement
The movement in the fair value in theoffair
the plan assets thevalue of the plan
Netherlands assets
plan is: of the Netherlands plan is:
OVERVIEW
(ii) Netherlands plan 2019 2018 2019 2
Netherlands plan
AED m AED m AED m AE
loyees of a subsidiary inEmployees
EMIRATES of aparticipate
Netherlands subsidiaryinina Netherlands participate
defined benefit in a defined benefit plan ("the
plan ("the
Netherlands plan"). The Netherlands plan is funded Balance brought forward Balance brought forward 314 269 314
herlands plan"). The Netherlands plan is funded by way of contribution to by
an way of contribution to an
Expected return on plan assetsExpected return on plan assets 5 5 5
ranceDNATA
policy. insurance policy.
Remeasurement Remeasurement
present Theand
value of obligations present valueof
fair value ofplan
obligations andasfair
assets are value of plan assets are as follows:
follows: - Return on plan assets - Return on plan assets 2 (2) 2
GROUP
Employer contributions Employer contributions 4 4 4
2019 2018 2019 2018
Employee contributions Employee contributions 2 2 2
FINANCIAL
AED m AED m AED m AED m
INFORMATION Benefits paid Benefits paid (5) (4) (5)
ent value of funded definedPresent value
benefit of funded defined benefit obligations
obligations 307 328 307 328 Currency translation differences (28)
Currency translation differences (28) 40
EMIRATES
Fair FINANCIAL
value of plan assets Less: Fair value of plan assets (294) (314) (294) (314) Balance carried forward Balance carried forward 294 314 294
COMMENTARY 13 14 13 14 dnata expects to contribute,dnata expectsof toexisting
in respect contribute,
plan in respect of
members of all
existing plan members of all its fu
its funded
TheNetherlands
actuarial valuation for theassumptions
Netherlandsrelating
plan included schemes, approximately AED schemes, approximately
34 m during the year endingAED 34
31 m during
March the year ending 31 March 2020.
2020.
to the assumptions relating to the
DNATA
actuarial valuation for the
FINANCIAL plan included
rate of 1.9% (2018: discount
ount COMMENTARY 1.9%) andrate of 1.9%salary
expected (2018:increases
1.9%) and
of expected salary
1.0% (2018: increases of 1.0% (2018: 1.0%)
1.0%) Unfunded schemes Unfunded schemes
annum.
EMIRATES
per annum. End of service
End of service benefits for employees benefits
who do for employees
not participate in thewho do notscheme,
provident participate in the provident sch
CONSOLIDATED
movement The
in the present movement
value in the
of defined present
benefit value of of
obligations defined benefit obligations of the Netherlands
the Netherlands defineddefined
defined benefit plans or other benefitcontribution
plans or other
plans defined contribution
follow relevant local plans follow relevant
FINANCIAL
is: STATEMENTS plan is: regulations, which are mainly regulations,
based on which areofmainly
periods basedservice
cumulative on periods of cumulative
and levels of service and leve

2019 2018 2019 2018 employees’ final basic salary.employees’

The liabilityfinal basic salary.
recognised in theThe liability recognised
consolidated in of
statement the consolidated stateme
| DNATA
| CONSOLIDATED
AED m AED m AED m AED m financial
financial position is the present position
value of is the benefit
the defined presentobligation
value of the
at defined
the end benefit
of the obligation at the end o
| FINANCIAL
| STATEMENTS reporting period. reporting period.
nce brought forward Balance brought forward 328 281 328 281 The movement in the presentThe movement
value in benefit
of defined the present value of
obligation is: defined benefit obligation is:
ice cost
ADDITIONAL Service cost 8 5 8 5 2019 2
INFORMATION 2019 2018
est cost Interest cost 6 6 6 6 AED m AED m AED m AE
easurement gain Remeasurement gain - (4) - (4)
Balance brought forward Balance brought forward 479 456 479
loyee contributions Employee contributions 2 2 2 2 Acquisitions (Note 33) Acquisitions (Note 33) 7 - 7
efits paid Benefits paid (5) (4) (5) (4) Current service cost Current service cost 55 53 55
Currency translation differences
ency translation differences (32) 42 (32) 42 Interest cost Interest cost 20 20 20
nce carried forward Balance carried forward 307 328 307 328 Remeasurement Remeasurement
- changes in
- changes in experience / demographic experience / demographic assumptions
assumptions (3) (11) (3)
- changes in financial assumptions
- changes in financial assumptions 17 14 17
Payments made during the year Payments made during the year (43) (53) (43)
Currency translation differences
Currency translation differences (2) - (2)
Balance carried forward Balance carried forward 530 479 530
Payments made during the Payments made
year include during
transfer of the year include
accumulated transfer
benefits to of accumulated benefits to dn
dnata’s
funded scheme. funded scheme.

178
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

19. Retirement
Retirement benefit obligations benefit obligations (continued)
(continued) The sensitivity of the defined The sensitivity
benefit of the
obligation to defined
changesbenefit obligationassumptions
in the principal to changes in the principal assump
OVERVIEW are set out below: are set out below:
ned contribution plans Defined contribution plans
EMIRATES Assumption Assumption Change Change
Effect on defined Effect on defined
dnata
a pays fixed contributions pays fixed
to certain contributions
defined contributionto plans
certain defined
and has nocontribution
legal or plans and has no legal or
benefit obligation benefit obligatio
constructive obligation to pay further contributions to settle
tructive obligation to pay further contributions to settle the benefits relating to the the benefits relating to the
Parent Subsidiaries Pa
DNATA
employee's
loyee's service in the current service
and prior in the
periods.   current and prior periods.   Subsidiaries
AED m AED m AED m AE
GROUP
+ 0.5% (48) + (31)
0.5% (48)
total amount recognised The total
in the amount recognised
consolidated in the consolidated
income statement income
in respect of all thestatement in respect of all the Discount rate Discount rate
- 0.5% 55 - 0.5%
36 55
s is asFINANCIAL
follows: plans is as follows:
+ 0.5% 6
Expected salary increases+ 0.5% 6 36
INFORMATION
2019 2018 Expected salary increases
2019 2018 - 0.5% (6) - (32)
0.5% (6)
EMIRATES
AED m AED m AED m AED m Theof
weighted average durations of theare
defined
FINANCIAL The weighted average durations the defined benefit obligations set outbenefit
below:obligations are set out below
ned benefit plans
COMMENTARY Defined benefit plans
ded schemes Funded schemes 2019 2
DNATA 2019 2018
- netService and interest cost - net 42 39
FINANCIAL
ice and interest cost
COMMENTARY 42 39 Years Years Years Y
42 39 42 39 Funded scheme - Swiss plan Funded scheme - Swiss plan 16.5 17.0 16.5
unded
EMIRATES
schemes Unfunded schemes
CONSOLIDATED Funded scheme - NetherlandsFunded
plan scheme - Netherlands plan 20.5 21.0 20.5
ice cost
FINANCIAL Service cost 55 53 55 53
STATEMENTS Unfunded scheme Unfunded scheme 13.7 12.9 13.7
est cost Interest cost 20 20 20 20
| DNATA
75 73 75 73 Through its defined benefit Through its defined
plans dnata benefit
is exposed to aplans dnata
number of isrisks,
exposed to a number of risks, the
the most
| CONSOLIDATED
ned|| contribution
FINANCIAL plans Defined contribution plans significant
significant of which are detailed below: of which are detailed below:
STATEMENTS
tributions expensed Contributions expensed 142 147 142 147
a) Change in discount rate:a)Retirement
Change inbenefit
discount rate: Retirement
obligations benefit
will increase dueobligations
to a will increase due
ADDITIONAL
ognised Recognised
in the consolidated income in the consolidated
statement income statement 259
259 259 259 decrease in market yields of high quality corporate bonds.
INFORMATION decrease in market yields of high quality corporate bonds.

b) Expected salary increases:b)The

Expected
presentsalary
valueincreases: The present
of the defined benefitvalue of the isdefined benefit obligatio
obligation
calculated by reference to thecalculated by reference
future salaries to the futureAs
of plan participants. salaries
such, of
an plan participants.
increase of As such, an increa
the salary
the salary of the plan participants of the
above theplan participants
expected rate ofabove
salary the expected
increase will rate of salary increase
increase
increase the retirement benefit the retirement benefit obligations.
obligations.

179
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Other provisions 20. Other provisions 21. Borrowings and lease liabilities
21. Borrowings and lease liabilities
OVERVIEW
2019 2018 2019 2
2019 2018 2019 2018
AED m AED m AED m AE
EMIRATES AED m AED m AED m AED m
nce brought forward Balance brought forward 60 69 60 69 Non-current Non-current
DNATA
ge for the year Charge for the year 53 14 53 14 Term loans (Note 22) Term loans (Note 22) 1,125 828 1,125
isitions (Note 33) Acquisitions (Note 33) 49 - 49 - Lease liabilities (Note 23) Lease liabilities (Note 23) 52 39 52
GROUP
ed during the year Utilised during the year (45) (30) (45) (30) 1,177 867 1,177
ilisedFINANCIAL
amounts reversed Unutilised amounts reversed (5) (9) (5) (9) Current Current
ency translation differences
INFORMATION
Currency translation differences (6) 16 (6) 16 Term loans (Note 22) Term loans (Note 22) 320 207 320
nce carried Lease liabilities (Note 23) Lease liabilities (Note 23) 17 12 17
EMIRATESforward Balance carried forward 106 60 106 60
FINANCIAL Bank overdrafts (Note 28) Bank overdrafts (Note 28) 95 73 95
COMMENTARY
sions are expected to be Provisions
used as follows:
are expected to be used as follows: 432 292 432
DNATA
2019 2018 2019 2018 1,609 1,159 1,609 1,
FINANCIAL
COMMENTARY AED m AED m AED m AED m
n oneEMIRATES
year (Note 18) Within one year (Note 18) 90 47 90 47 Borrowings and lease liabilitiesBorrowings
are denominated
and lease
in the
liabilities
following
are denominated
currencies: in the following currencies:
one year (Note 18)
CONSOLIDATED
Over one year (Note 18) 16 13 16 13
FINANCIAL
STATEMENTS 2019 2018 2019 2
AED m AED m AED m AE
| DNATA
| CONSOLIDATED Australian Dollar Australian Dollar 480 117 480
|
|
FINANCIAL
STATEMENTS US Dollar US Dollar 444 271 444
Pound Sterling Pound Sterling 263 314 263
ADDITIONAL
INFORMATION UAE Dirham UAE Dirham 185 213 185
Swiss Franc Swiss Franc 107 121 107
Singapore Dollar Singapore Dollar 50 55 50
Euro Euro 33 33 33
Others Others 47 37 47

180
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Term loans 22. Term loans 23. Lease liabilities 23. Lease liabilities
OVERVIEW
2019 2018 2019 2018 Finance leases Finance leases 2019 2018 2019 2
AED m AED m AED m AED m AED m AED m AED m AE
EMIRATES
nce brought forward Balance brought forward 1,036 829 1,036 829 Balance brought forward Balance brought forward 51 33 51
uisitions (Note 33)
DNATA Acquisitions (Note 33) 9 - 9 - Acquisitions (Note 33) Acquisitions (Note 33) 3 - 3
tions Additions 613 475 613 475 Additions 34 26
Additions 34
aymentsGROUP
Repayments (156) (306) (156) (306) Repayments (16) (9)
Repayments (16)
ency translation differences
Currency translation differences (55) 38 (55) 38 Currency translation differences (3) 1
Currency translation differences (3)
FINANCIAL 1,447 1,036 1,447 1,036 Balance carried forward 69 51
INFORMATION Balance carried forward 69
Transaction costs Less: Transaction costs (2) (1) (2) (1)
nce carried
EMIRATESforward Balance carried forward 1,445 1,035 1,445 1,035 Gross lease liabilities: Gross lease liabilities:
m loans are repayable as follows:
FINANCIAL
Term loans are repayable as follows: Within one year 19 13
COMMENTARY
Within one year 19
hin one year Within one year 320 207 320 207 Between 2 and 5 years Between 2 and 5 years 39 28 39
ween 2DNATA
and 5 years Between 2 and 5 years 1,019 680 1,019 680
FINANCIAL After 5 years After 5 years 19 12 19
r 5 years
COMMENTARY
After 5 years 106 148 106 148 77 53 77
al over one year Total over one year 1,125 828 1,125 828
EMIRATES Future interest Future interest (8) (2) (8)
CONSOLIDATED
m loans are denominated Term
FINANCIAL in theloans
following currencies: Present value of lease liabilities
Present value of lease liabilities 69 51 69
STATEMENTS are denominated in the following currencies:
ralian Dollar Australian Dollar 444 95 444 95
Dollar| DNATA US Dollar 444 271 444 The present value of lease liabilities is repayable
The present value ofaslease
follows:
liabilities is repayable as follows:
| CONSOLIDATED 271
nd Sterling
| FINANCIAL Pound Sterling 232 292 232 292 Within one year Within one year 17 12 17
| STATEMENTS
Dirham UAE Dirham 157 183 157 Between 2 and 5 years 34 27
183 Between 2 and 5 years 34
s Franc Swiss Franc 90 100 90 100 After 5 years 18 12
ADDITIONAL
INFORMATION
After 5 years 18
apore Dollar Singapore Dollar 50 55 50 55 Total over one year 52 39
Total over one year 52
Euro 25 33 25 33 The present value of lease liabilities is denominated
The present in the
value of lease liabilities is denominated in the
ers Others 3 6 3 6 following currencies: following currencies:
tractual repricing dates are set at three
Contractual to six month
repricing intervals.
dates are set at The
threeeffective interest
to six month intervals. The effective interest Australian Dollar 36 22
Australian Dollar 36
on the term loans was 3.1% (2018: 2.4%) per annum. The carrying amounts
rate on the term loans was 3.1% (2018: 2.4%) per annum. of the The carrying amounts of the Swiss Franc 17 21
Swiss Franc 17
loans approximate theirterm
fair values. The fair values
loans approximate are
their determined
fair values. The byfair
discounting
values are determined by discounting Others 16 8
Others 16
ected cash flows using the
projected cash flows using the interest rate yield maturities
interest rate yield curve applicable to different curve applicable to different maturities
Lease liabilities are secured on the related
Lease plant
liabilities are and machinery.
secured on the related plant and machinery.
currencies adjusted for and
credit spread and
currencies falls within
adjusted levelspread
for credit 2 of the
and fair
fallsvalue
within level 2 of the fair value
archy. hierarchy. The carrying amount of leaseThe
liabilities
carryingapproximate
amount of to their
lease fair values.
liabilities The fair values
approximate to their fair values. The fair v
term loan in Swiss FrancThe
is designated as Swiss
a hedge thedesignated
of is net investment in dnata are determined by discounting projected cash flows using the interest rate
are determined by discounting projected cash flows yield curve
using the interest rate yield c
term loan in Franc as a hedge of the net investment in dnata
zerland AG. The foreign exchange movement on translation of the loan at thetranslation
end for the remaining term to maturities and currencies
for the remaining term adjusted for credit
to maturities spread and
and currencies falls for credit spread and
adjusted
Switzerland AG. The foreign exchange movement on of the loan at the end
he reporting period is a loss of AED 4 m (2018: within level 2 of the fair valuewithin
hierarchy.
of the reporting periodgain
is a of AED
loss 9 m),4recognised
of AED in the
m (2018: gain of AED 9 m), recognised in the level 2 of the fair value hierarchy.
slation reserve through other comprehensive income.
translation reserve through other comprehensive income.

181
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Deferred income tax 24. Deferred income tax The movements in deferred The movements
tax assets in deferred
and liabilities tax the
during assets and
year, liabilities
without during the year, without ta
taking
OVERVIEW into of
into consideration the offsetting consideration the offsetting
balances within the same oftaxbalances within
jurisdiction, arethe
as same tax jurisdiction, ar
Deferred
rred tax assets and liabilities tax assets
are offset whenand thereliabilities are offset
is a legally when there
enforceable right tois a legally enforceable right to follows: follows:
EMIRATES offsetcurrent
t current tax assets against currenttax
taxliabilities
assets against
and when current
the tax liabilities
deferred taxesand when the deferred taxes Deferred income tax assets Deferred income tax assets
e to the same income taxrelate to theThe
authority. same income
offset tax authority.
amounts The offset amounts are as follows:
are as follows: Tax losses Provisions Tax losses Provisions
Other Total Other T
AEDAED
m m AED AED
m m AED m AE
DNATA
AED m AED m
2019 2018 2019 2018 1 April 2017 1 April 2017 16 41 40 16 97 41 40
GROUP
AED m AED m AED m AED m (Charged) / credited to the (Charged) / credited to the
consolidated income statement consolidated income
(4) statement6 7 (4) 9 6 7
rred income
FINANCIALtax assets Deferred income tax assets 110 81 110 81
INFORMATION Currency
Currency translation differences translation
2 differences2 1 2 5 2 1
rred income tax liabilitiesDeferred income tax liabilities (153) (142) (153) (142)
Others
Others - (11) 3 - (8) (11) 3
EMIRATES (43) (61) (43) (61)
FINANCIAL 31 March 2018 31 March 2018 14 38 51 14 103 38 51
ements in the deferred Movements in the deferred
tax account are as follows: tax account are as follows:
COMMENTARY
Acquisitions (Note 33) Acquisitions (Note
- 33) - 32 - 32 - 32
nce brought forward Balance brought forward (61) (86) (61) (86)
DNATA (Charged) / credited to the (Charged) / credited to the
uisitions (Note 33) Acquisitions (Note 33) 9 (2) 9 (2) consolidated income
FINANCIAL
consolidated income statement (8) statement12 2 (8) 6 12 2
COMMENTARY
Creditedstatement
ited to the consolidated income to the consolidated income statement
12 61 12 61 Currency translation
Currency translation differences (1) differences
(5) (7) (1) (13) (5) (7)
ency translation Currency translation differences
differences (3) (3) (3) (3) Others
EMIRATES
CONSOLIDATED
Others 8 (5) (3) 8 - (5) (3)
rs Others - (31) - (31) 31 March 2019 13
FINANCIAL 31 March 2019 40 75 13 128 40 75 1
nce carried forward
STATEMENTS Balance carried forward (43) (61) (43) (61)
Deferred income tax liabilities
Deferred income tax liabilities
| DNATA
| CONSOLIDATED Property, Property,
| FINANCIAL
plant and Intangible plant and Intangible
| STATEMENTS
equipment assets equipment
Other assets
Total Other T
ADDITIONAL
AED m AED m AED
AED m m AED m m
AED AED m AE
INFORMATION
1 April 2017 1 April 2017 (38) (144) (1)(38) (183)(144) (1) (1
Acquisitions Acquisitions - (2) - - (2) (2) -
Credited to the consolidated Credited to the consolidated
income statement income statement5 47 - 5 52 47 -
Currency translation
Currency translation differences (2) differences
(6) - (2) (8) (6) -
Others Others (18) (4) (1)(18) (23) (4) (1)
31 March 2018 31 March 2018(53) (109) (2)(53) (164)(109) (2) (1
Acquisitions (Note 33) Acquisitions (Note
- 33) (23) - - (23) (23) -
(Charged) / credited to the (Charged) / credited to the
consolidated income statement consolidated income
(9) statement
15 - (9) 6 15 -
Currency translation
Currency translation differences 1 differences9 - 1 10 9 -
Others Others 2 (2) - 2 - (2) -
31 March 2019 31 March 2019(59) (110) (2)(59) (171)(110) (2) (1

182
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Operating leases 25. Operating leases 28. Short term bank deposits,
28.cash
Short
and
term
cashbank
equivalents
deposits, cash and cash equivalents
OVERVIEW
re minimum lease payments
Future
under
minimum
non-cancellable
lease payments
operating
under
leases
non-cancellable
are as follows:
operating leases are as follows: 2019 2018 2019 2
EMIRATES AED m AED m AED m AE

2019 2018 2019 2018 Bank deposits Bank deposits 4,318 4,054 4,318 4,
DNATA
AED m AED m AED m AED m Cash and bank Cash and bank 804 891 804
GROUP
than 1 year Less than 1 year 494 396 494 396 Cash and bank balances Cash and bank balances 5,122 4,945 5,122 4,9
een 2 and 5 years Between 2 and 5 years 1,167 1,232 1,167 1,232 Less: Short term bank depositsLess:
- over
Short
3 months
term bank
original
deposits - over 3 months original
FINANCIAL
5 years
INFORMATION After 5 years 767 1,003 767 1,003 maturity maturity (3,121) (3,760) (3,121) (3,
2,428 2,631 2,428 2,631 Cash and cash equivalents asCash
per and
the consolidated
cash equivalents as per the consolidated
EMIRATES
FINANCIAL statement of financial position
statement of financial position 2,001 1,185 2,001 1,1
COMMENTARY
Capital commitments 26. Capital commitments Bank overdrafts (Note 21) Bank overdrafts (Note 21) (95) (73) (95)
DNATA
2019 2018 2019 2018 Cash and cash equivalents asCash
per and
the cash equivalents as per the
FINANCIAL
COMMENTARY AED m AED m AED m AED m consolidated statement of cash
consolidated
flows statement of cash flows
1,906 1,112 1,906 1,1

a
EMIRATES
dnata 657 373 657 373 Short term bank deposits, cash
Short
andterm
cashbank
equivalents
deposits,
yield
cash
anand
effective
cash equivalents
interest rateyield
of an effective interest rat
CONSOLIDATED
ventures
FINANCIAL Joint ventures 9 12 9 12 3.3% (2018: 2.8%) per annum.3.3% (2018: 2.8%) per annum.
STATEMENTS
666 385 666 385
| DNATA 29. Derivative financial instruments
29. Derivative financial instruments
| CONSOLIDATED
| FINANCIAL
Guarantees
| STATEMENTS 27. Guarantees 2019 2018 2019 2
AED m AED m AED m AE
ADDITIONAL
INFORMATION 2019 2018 2019 2018 Current liabilities Current liabilities
AED m AED m AED m AED m
Currency swaps and forwards Currency swaps and forwards 11 25 11

antees and letters of credit

Guarantees
provided and
by banks
lettersinofthe
credit provided by banks in the
The notional principal amounts
Theoutstanding
notional principal
are: amounts outstanding are:
mal course of business normal course of business 442 396 442 396
2019 2018 2019 2

antees and letters of credit

Guarantees
include and
AEDletters
53 m of
(2018:
creditAED
include
45 m)AED
provided
53 m (2018:
by AED 45 m) provided by AED m AED m AED m AE
panies under common control
companies
on normal
undercommercial
common control
terms. on normal commercial terms. Currency contracts Currency contracts 902 1,000 902 1,

183
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

30. Classification of financial instruments

OVERVIEW The accounting policies for financial instruments have been applied to the following:

EMIRATES
Financial Assets and Financial
assets at Derivative liabilities at fair liabilities at
DNATA
amortised financial value through amortised
cost instruments profit or loss cost Total
GROUP
AED m AED m AED m AED m AED m
2019
FINANCIAL
INFORMATION Assets
Trade and other receivables (excluding prepayments and
EMIRATES
FINANCIAL advance lease rentals) 3,198 - - - 3,198
COMMENTARY
Short term bank deposits 3,121 - - - 3,121
DNATA Cash and cash equivalents 2,001 - - - 2,001
FINANCIAL
COMMENTARY
Total 8,320 - - - 8,320

EMIRATES Liabilities
CONSOLIDATED Borrowings and lease liabilities - - - 1,609 1,609
FINANCIAL
STATEMENTS Trade and other payables (excluding deferred revenue and
customer advances) - - 69 3,598 3,667
| DNATA
| CONSOLIDATED Derivative financial instruments - 11 - - 11
| FINANCIAL
| STATEMENTS Total - 11 69 5,207 5,287
2018
ADDITIONAL
INFORMATION Assets
Trade and other receivables (excluding prepayments and
advance lease rentals) 3,095 - - - 3,095
Short term bank deposits 3,760 - - - 3,760
Cash and cash equivalents 1,185 - - - 1,185
Total 8,040 - - - 8,040

Liabilities
Borrowings and lease liabilities - - - 1,159 1,159
Trade and other payables (excluding deferred revenue and
customer advances) - - 17 4,149 4,166
Derivative financial instruments - 25 - - 25
Total - 25 17 5,308 5,350
Except as otherwise stated, the carrying amounts of financial assets and financial liabilities approximate their fair values and fall into level
3 of the fair value hierarchy.

184
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Related party transactions

31. and
Related
balances
party transactions and balances dnata uses public utilities provided
dnata uses
by number
public utilities
of Government
providedcontrolled
by number entities
of Government
for controlled entities
OVERVIEW its operations in Dubai, where
its these
operations
entities
in Dubai,
are thewhere
sole providers
these entities
of theare
relevant
the sole providers of the releva
a transacts with associates,
dnata
jointtransacts
ventureswith
andassociates,
companiesjoint
controlled
ventures
byand
dnata
companies
and controlled by dnata and
services. This includes theservices.
supply This
of electricity,
includes thewatersupply
and of
airport
electricity,
services.water and airport servic
arentEMIRATES
company within theitsscope
parent
of company
its ordinary
within
business
the scope
activities.
of its ordinary business activities.
Transactions falling in theseTransactions
expense categories
falling inare
these
individually
expense insignificant
categories are
andindividually insignificant a
a and Emirates (a company
dnata under
and Emirates
common(acontrol)
company share
under
central
common
corporate
control) share central corporate carried out on an arm's lengthcarried
basis. out on an arm's length basis.
DNATA
tions such as information
functions
technology,
such asfacilities,
information
human
technology,
resources, facilities,
finance, human resources, finance,
2019 2018 2019 20
sury, cash management,treasury,
legal and
cash
other
management,
functions. Where
legal and
suchother
functions
functions.
are Where such functions are
GROUP AED m AED m AED m AED
ed the costs are allocatedshared
between
thednata
costs and
are allocated
Emirates based
between
ondnata
activity
and
levels.
Emirates based on activity levels.
Year end balances Year end balances
er than these shared services
FINANCIAL
Otherarrangements
than these shared
the following
services transactions
arrangementshave
thetaken
following transactions have taken
INFORMATION (i) Receivables-sale of goods
(i)and
Receivables-sale
services (Noteof14)
goods and services (Note 14)
e on an arm's length basis.
place on an arm's length basis. Companies under common control
Companies under common control 237 287 237 2
EMIRATES 2019 2018 2019 2018
FINANCIAL Joint ventures Joint ventures 47 46 47
AED m AED m AED m AED m
COMMENTARY
Associates Associates 36 38 36
ding transactions Trading transactions
DNATA 320 371 320 37
ale ofFINANCIAL
goods and services
(i) Sale of goods and services
(ii) Payables-purchase of goods
(ii) Payables-purchase
and services (Noteof17)
goods and services (Note 17)
of goods - Companies under
COMMENTARY Sale of
common
goods -control
Companies under common
424 control 434 424 434
Companies under common control
Companies under common control 51 55 51
ices rendered
EMIRATES - Companies
Services
under rendered
common -control
Companies under2,285
common control
2,262 2,285 2,262
Joint ventures Joint ventures 16 44 16
ices rendered - Joint ventures
CONSOLIDATED Services rendered - Joint ventures 55 53 55 53
FINANCIAL
Associates Associates 3 3 3
ices rendered - Associates
STATEMENTS Services rendered - Associates 15 13 15 13
70 102 70 10
| DNATA 2,779 2,762 2,779 2,762
(iii) Borrowings (iii) Borrowings
Purchase of goods and services
| CONSOLIDATED (ii) Purchase of goods and services
| FINANCIAL Companies under common control
Companies under common control 157 184 157 18
hase| STATEMENTS
of goods - Companies
Purchase
under of
common
goods -control
Companies under 136
common control
114 136 114
ices received - Companies
Services
under common
received -control
Companies under common
586 control
499 586 499
ADDITIONAL
ices received - Joint ventures
INFORMATION Services received - Joint ventures 218 220 218 220 (iv) Loans - receivable (Note(iv)
14)Loans - receivable (Note 14)
940 833 940 833 Joint ventures Joint ventures 97 113 97 1
er transactions Other transactions Associates Associates 7 - 7
104 113 104 11
inance income (i) Finance income
panies under common control
Companies under common control 120 74 120 74
Movements in the loans wereMovements
as follows: in the loans were as follows:
t ventures Joint ventures 3 4 3 4
Balance brought forward Balance brought forward 113 111 113 11
123 78 123 78 Additions Additions 7 12 7
Finance cost (ii) Finance cost Repayments Repayments (7) (24) (7) (
panies under common control
Companies under common control 1 5 1 5 Currency translation differences
Currency translation differences (9) 14 (9)
Balance carried forward Balance carried forward 104 113 104 11
Compensation to key management
(iii) Compensation
personnel
to key management personnel
ries and short-term employee
Salaries
benefits
and short-term employee benefits
28 49 28 49 Receivable within one year Receivable within one year 8 113 8 11
ement benefits Retirement benefits 6 5 6 5 Receivable over one year Receivable over one year 96 - 96

34 54 34 54 The loans earned effective interest

The loans
of 3.0%
earned
(2018:
effective
2.9%) per
interest
annum.
of 3.0% (2018: 2.9%) per annum.

185
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Financial risk management

32. Financial risk management Currency risk Currency risk
OVERVIEW
a has limited exposure todnata
financial risks byexposure
has limited virtue of to
thefinancial
nature of its by
risks operations.
virtue of In
the nature of its operations. In Certain subsidiaries of dnataCertain
are exposed to currency
subsidiaries of dnatarisk
areonexposed
purchaseto of servicesrisk on purchase of ser
currency
areasEMIRATES
where financial risks
the exist,
areas the
whereaimfinancial
is to achieve an appropriate
risks exist, the aim is balance
to achieve an appropriate balance outside the source market. outside
These subsidiaries
the source manage such risks
market. These through manage
subsidiaries currencysuch risks through curr
ween risk and return and between
minimise risk
potential adverse
and return andeffects on dnata’s
minimise consolidated
potential adverse effects on dnata’s consolidated forwards. forwards.
ncial position.
DNATA financial position.
dnata is exposed to the effects of fluctuations
dnata is exposed toin the
prevailing
effects foreign currencyinexchange
of fluctuations prevailing foreign currency exch
a’s risk management procedures are management
dnata’s risk designed to identify and analyse
procedures these to
are designed risks, to and analyse these risks, to
identify rates on its long term debtrates
obligations denominated
on its long term debtin obligations
Swiss Franc, Euro, Poundin Swiss Franc, Euro, P
denominated
GROUP
ppropriate risk limits andset
controls and torisk
appropriate monitor the risks
limits and and and
controls adherence to limits
to monitor the risks and adherence to limits Sterling, Singapore Dollar and Australian
Sterling, Dollar. Dollar
Singapore Cash flows from the Switzerland,
and Australian Dollar. Cash Italy,
flows from the Switzerland,
meansFINANCIAL
of reliable and up-to-date
by meansinformation. dnata
of reliable and reviews its
up-to-date risk management
information. dnata reviews its risk management United Kingdom and Australian
Unitedoperations
Kingdom are
and adequate
Australiantooperations
meet the are
repayment
adequate to meet the repay
edures and systems on aprocedures
INFORMATION regular basis
andtosystems
reflect changes in markets,
on a regular basis toproducts and
reflect changes in markets, products and schedules. A 1% change inschedules.
exchange Arate
1%for these incurrencies
change exchangewould not these
rate for have currencies
a would not ha
rging best practice. emerging best practice. significant impact on profit or equity. At
significant dnataonparent
impact profitlevel these At
or equity. liabilities
dnata provide a these liabilities prov
parent level
EMIRATES
FINANCIAL natural hedge to its foreign currency investments
natural hedge in thesecurrency
to its foreign countries.
investments in these countries.
management
COMMENTARYprocedures aremanagement
Risk approved byprocedures
a steering group comprising
are approved by aofsteering
senior group comprising of senior
agement. Their identification, evaluation
management. Their and hedging ofevaluation
identification, financial and
risks hedging
are of financial risks are (ii) Credit risk (ii) Credit risk
DNATA
ormed in close cooperation
FINANCIAL with the
performed in operating units. Senior
close cooperation with management
the operatingisunits.
also Senior management is also
COMMENTARY dnata is exposed to credit risk,
dnatawhich is the risk
is exposed that the
to credit risk,counterparty
which is thewill
riskcause a counterparty will cau
that the
onsible for the review responsible
of risk management and the
for the review of control environment.
risk management andThe
the control environment. The
financial loss to dnata by financial
failing toloss
discharge
to dnataan by
obligation.
failing toFinancial assets
discharge that
an obligation. Financial assets
ous financial
EMIRATESrisk elementsvarious
are discussed
financialbelow.
risk elements are discussed below.
CONSOLIDATED potentially subject dnata to potentially
credit risk consist
subject principally of deposits
dnata to credit with banks
risk consist and of deposits with banks
principally
Market risk
FINANCIAL (i) Market risk trade receivables. dnata usestrade
external ratings such
receivables. dnataasuses
Standard & ratings
external Poor's, Moody's or
such as Standard & Poor's, Moody
STATEMENTS

ket risk is the risk that the fair value their equivalent in order to measure and monitor
their equivalent its to
in order credit risk exposures
measure to financial
and monitor its credit risk exposures to fina
Market risk isorthe
future
risk cash flows
that the fairofvalue
a financial instrument
or future cash flows of a financial instrument
| DNATA
fluctuate because of changes in market prices.of Market institutions. In the absence of independent
institutions. ratings,
In the credit
absence ofquality is assessed
independent based
ratings, on quality is assessed base
credit
| CONSOLIDATED will fluctuate because changesrisks relevantprices.
in market to dnata's
Market risks relevant to dnata's
| FINANCIAL
ations are interest rate risk and currency risk. rate risk and currency risk. the counterparty's financial position, past experience
the counterparty's andposition,
financial other factors.
past experience and other factors.
| STATEMENTS operations are interest
rest rate risk
ADDITIONAL Interest rate risk dnata manages limits and controls concentration
dnata manages limits of
andrisk wherever
controls they are identified.
concentration of risk wherever they are ident
INFORMATION
a is exposed to the effects of is
fluctuations dnata places significant deposits
dnatawith highsignificant
places credit quality banks.with
deposits Exposure to credit
high credit riskbanks.
quality is Exposure to credit r
dnata exposed tointheprevailing
effects levels of interest
of fluctuations in rates on levels of interest rates on
prevailing
owings and investments.borrowings
Exposure and
arisesinvestments.
from interest rate fluctuations also managed through regular alsoanalysis
managed of through
the ability of counterparties
regular andability
analysis of the potential
of counterparties and pote
Exposure arises fromin interest
the rate fluctuations in the
national financial markets with respect to interest cost on respect
its longtoterm debtcost on its long term debt counterparties to meet their obligations andto
counterparties bymeet
changing their limits where
their obligations and byappropriate.
changing their limits where approp
international financial markets with interest
gations and interest income on its bank Approximately AED 3,591 m Approximately
(2018: 3,418 m)AED of short
3,591term bank 3,418
m (2018: deposits andshort
m) of cashterm
and bank deposits and cash
obligations anddeposits.
interest income on its bank deposits.
bank balances are held with financial institutions
bank balances under
are held common
with financialcontrol.
institutions under common control.
owings obtained at variable rates expose
Borrowings obtaineddnata
at to cash flow
variable ratesinterest
expose rate
dnatarisk.
to No
cash flow interest rate risk. No
ging cover is obtained due to the cover
hedging stableisinterest ratedue
obtained environment that
to the stable exists in
interest theenvironment that exists in the
rate Policies are in place to ensure that sales
Policies are inare made
place to to customers
ensure withare
that sales an made
appropriate
to customers with an approp
ntries where the loans arecountries
contracted.
where the loans are contracted. credit history failing which ancredit
appropriate
history level
failingofwhich
security
an is obtained, where
appropriate level ofnecessary
security is obtained, where nece
sales are made on cash terms. salesCredit limits on
are made arecash
also terms.
imposed to cap
Credit exposure
limits are alsotoimposed
a to cap exposure
key reference rates basedThe
on key
which interestrates
reference costsbased
are determined are USDcosts
on which interest LIBOR
arefor
determined are USD LIBOR for
customer. customer.
ed States Dollar, CHF LIBOR for Swiss
United StatesFranc,
Dollar,GBP
CHFLIBOR
LIBORfor
forPound
Swiss Sterling, BBSY
Franc, GBP for for Pound Sterling, BBSY for
LIBOR
ralian Dollar, EURIBOR for Euro and
Australian SIBOREURIBOR
Dollar, for Singapore
for EuroDollar. A 25 basis
and SIBOR point
for Singapore Dollar. A 25 basis point
ge in these interest rateschange
would not haveinterest
in these a significant
rates impact on profit
would not have aorsignificant
equity. impact on profit or equity.

186
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

32.(continued)
Financial risk management (continued) Summarised
Summarised below in the table below
is the maturity in the
profile of table is the
financial maturity
liabilities profile
based onof financial liabilities based o
the
inancial risk management
OVERVIEW remaining period at the end of the reporting period to the contractual maturity date.the contractual maturity
remaining period at the end of the reporting period to
The table
able below presents an analysis of below presents
short term bankan analysisand
deposits of short term bankby
bank balances deposits and bank balances by
The amounts disclosed are theThe amountsundiscounted
contractual disclosed are cash
the contractual
flows. undiscounted cash flows.
g agency designation at the end of the reporting period based on Standard &period based on Standard &
EMIRATES
rating agency designation at the end of the reporting
s ratings or its equivalentPoor's
for theratings or its equivalent
main banking for the main banking relationships:
relationships: Less than
Less than 1 2-5 Over 5 1 2-5 Over 5
DNATA
2019 2018 year years year
years years
Total years T
2019 2018
AED m AED m AED m AED m AED m AED m AEDAED
m m AED m m
AED AED m A
GROUP
o AA+ AA- to AA+ 288 156 288 156 2019
2019
A- to A+ 3,780 3,891 Borrowings and
A+ FINANCIAL 3,780 3,891 Borrowings and lease liabilities 480lease liabilities
1,144 129480 1,144
1,753 129 1
INFORMATION BBB+ 639 377 Derivative financial
639 377 Derivative financial instruments 11 instruments - - 11 11 - -
r thanEMIRATES
BBB+ Lower than BBB+ 404 509 404 509 Trade and other payables
Trade and other payables
ed
FINANCIAL Unrated - 2 - 2 (excluding deferred revenue and
COMMENTARY (excluding deferred revenue and
(iii) Liquidity risk customer deposits) customer deposits)
3,562 105 3,562
- 3,667105 - 3
iquidity risk
DNATA
FINANCIAL 4,053 1,249 4,053
129 1,249
5,431 129 5
dity risk Liquidity
is the risk that dnata risk istothe
is unable risk its
meet that dnata isobligations
payment unable to meet its payment obligations associated
associated
COMMENTARY
2018 2018
its financial liabilities when they fall due and to replace funds when they to
with its financial liabilities when they fall due and arereplace funds when they are
EMIRATES Borrowings and lease liabilitiesBorrowings and324lease liabilities
763 169324 1,256763 169 1
rawn.CONSOLIDATED withdrawn.
Derivative financial instrumentsDerivative financial
25 instruments - - 25 25 - -
FINANCIAL
a’s liquidity management dnata’s
STATEMENTS processliquidity management
is monitored by seniorprocess is monitored
management by senior management and includes
and includes Trade and other payables Trade and other payables
ollowing: the following: (excluding deferred revenue and
| DNATA (excluding deferred revenue and
| CONSOLIDATED
Day  Day
to day funding, managed to day funding,
by monitoring futuremanaged byto
cash flows monitoring future cash flows to ensure that
ensure that customer deposits) customer deposits)
4,096 70 4,096
- 4,166 70 - 4
| FINANCIAL
requirements requirements
| STATEMENTS can be met. This can be met. This
includes replenishment includes
of funds replenishment of funds as they
as they 4,445 833 4,445
169 5,447833 169 5
mature. mature.
Maintaining
ADDITIONAL  Maintaining
rolling forecasts rolling forecasts
of dnata’s liquidity of dnata’s
position on liquidity
the basis of position on the basis of
INFORMATION
expected cash flows. expected cash flows.
Monitoring liquidity ratios Monitoring liquidityandratios
against internal against
external internal and external regulatory
regulatory
requirements. requirements.
Maintaining debt financing  plans.
Maintaining debt financing plans.
Maintaining diversified credit Maintaining diversified
lines, including credit credit
stand-by lines, facility
including stand-by credit facility
agreements. agreements.

Sources
ces of liquidity are regularly of liquidity
reviewed are regularly
as required reviewed
by senior as required
management to by senior management to
tain a diversification by maintain a diversification
geography, by geography,
provider, product provider,
and term and product and term and to ensure
to ensure
a has adequate resources dnata
for itshas adequate resources for its operations.
operations.

187
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Acquisitions
33. Acquisitions
Assets and liabilities arising from and recognised on acquisitions have been measured
Assets and liabilities arising from and recognised on acquisitions have been measu
9 OVERVIEW
on provisional basis, pending the fair valuation of acquired net assets.
2019 on provisional basis, pending the fair valuation of acquired net assets.
tas Catering
EMIRATES
Qantas Catering Qantas 121
ctober 2018, dnata through its wholly owned subsidiary Alpha Flight Services Pty Qantas 121
DNATA In October 2018, dnata through its wholly owned subsidiary Alpha Flight Services Pty Catering Group Others Total
Australia, acquired 100% ownership of Qantas Catering Group Ltd and Snap Fresh Catering Group Others T
Ltd, Australia, acquired 100% ownership of Qantas Catering Group Ltd and Snap Fresh AED m AED m AED m AED m
Ltd, together forming the Qantas Catering business. The acquired business creates AED m AED m AED m AED
GROUP
Pty Ltd, together forming the Qantas Catering business. The acquired business creates Property, plant and equipment
prepares in-flight meals and provides airline catering logistics in Australia. Property, plant and equipment
and prepares in-flight meals and provides airline catering logistics in Australia. (Note 8) 141 27 13 181
FINANCIAL (Note 8) 141 27 13
Group Intangible assets (Note 10) 45 12 27 84
INFORMATION
121 Group Intangible assets (Note 10) 45 12 27
ovember 2018, dnata through its wholly owned subsidiary Alpha Flight US Inc. Other current assets 145 27 84 256
In November 2018, dnata through its wholly owned subsidiary Alpha Flight US Inc. Other current assets 145 27 84
EMIRATES
uired FINANCIAL
85% ownership of 121 Group International LLC in the US ("121 Group"). The Deferred income tax assets (Note
acquired 85% ownership of 121 Group International LLC in the US ("121 Group"). The Deferred income tax assets (Note
up provides inflight catering services to international commercial airlines and
COMMENTARY 24) 32 - - 32
group provides inflight catering services to international commercial airlines and 24) 32 - -
ate flights,
DNATA commissary goods to airport kiosks through its locations in Oxford,
Cash and cash equivalents - - 67 67
private flights, commissary goods to airport kiosks through its locations in Oxford, Cash and cash equivalents - - 67
necticut, Inwood and New York. The group also operates restaurants in New York
FINANCIAL
Deferred income tax liabilities
COMMENTARY Connecticut, Inwood and New York. The group also operates restaurants in New York Deferred income tax liabilities
Connecticut. (Note 24) (13) (3) (7) (23)
EMIRATES and Connecticut. (Note 24) (13) (3) (7)
Retirement benefit obligations
ers CONSOLIDATED Retirement benefit obligations
FINANCIAL Others (Note 19) - - (7) (7)
une 2018, dnata acquired 70% ownership in DUBZ Holding Limited ("DUBZ"). The
STATEMENTS (Note 19) - - (7)
In June 2018, dnata acquired 70% ownership in DUBZ Holding Limited ("DUBZ"). The Borrowings and lease liabilities - (12) - (12)
pany| DNATA
provides home check-in and passenger baggage transportation services to Borrowings and lease liabilities - (12) -
company provides home check-in and passenger baggage transportation services to Provisions (Note 20) (47) (2) - (49)
airport in UAE.
| CONSOLIDATED Provisions (Note 20) (47) (2) -
| FINANCIAL the airport in UAE. Current liabilities (118) (36) (97) (251)
| STATEMENTS Current liabilities (118) (36) (97) (
ctober 2018, dnata acquired 100% ownership of TROPO Gmbh. TROPO GmbH is a Fair value of net assets acquired 185 13 80 278
In October 2018, dnata acquired 100% ownership of TROPO Gmbh. TROPO GmbH is a Fair value of net assets acquired 185 13 80 2
el tourADDITIONAL
operator based in Germany. Less: Non-controlling interest - (5) (3) (8)
INFORMATION travel tour operator based in Germany. Less: Non-controlling interest - (5) (3)
dnata's share of net assets
ovember 2018, dnata through its wholly owned subsidiary Dnata Travel Holdings dnata's share of net assets
In November 2018, dnata through its wholly owned subsidiary Dnata Travel Holdings acquired 185 8 77 270
imited acquired 73.4% ownership of BD4travel Limited ("BD4T"). BD4T is a German acquired 185 8 77 2
UK Limited acquired 73.4% ownership of BD4travel Limited ("BD4T"). BD4T is a German Goodwill (Note 10) 193 41 86 320
-up and offers technology for analysing individual customer's behaviour in an Goodwill (Note 10) 193 41 86
start-up and offers technology for analysing individual customer's behaviour in an Total purchase consideration 378 49 163 590
ne website in real time. Total purchase consideration 378 49 163 5
online website in real time. Less: Cash and cash equivalents
ebruary 2019 dnata acquired the remaining 50% equity stake in Dubai Express LLC Less: Cash and cash equivalents
In February 2019 dnata acquired the remaining 50% equity stake in Dubai Express LLC acquired - - (67) (67)
Freightworks Logistics LLC for AED 40m. acquired - - (67)
and Freightworks Logistics LLC for AED 40m. Less: Fair value of retained interest - - (40) (40)
ts, liabilities and consideration related to the above acquisitions are disclosed Less: Fair value of retained interest - - (40)
Less: Deferred consideration - - (3) (3)
Assets, liabilities and consideration related to the above acquisitions are disclosed Less: Deferred consideration - - (3)
er ‘Others’ in the table below.
under ‘Others’ in the table below. Cash outflow on acquisition 378 49 53 480
Cash outflow on acquisition 378 49 53 4
Goodwill is attributable to the expected synergies, revenue growth and future market
Goodwill is attributable to the expected synergies, revenue growth and future ma
development of the acquired businesses.
development of the acquired businesses.

188
 THE EMIRATES GROUP
ANNUAL REPORT

2018-19

Acquisitions (continued)33. Acquisitions (continued) 34. Capital management 34. Capital management
OVERVIEW
financial effects of the acquired
The financial
businesses
effects
areofset
theout
acquired
below:businesses are set out below: dnata monitors the return ondnata
equitymonitors
which is the
defined
return
as on
profit
equity
for the
which
year
is defined
expressed
as as
profit for the year expresse
EMIRATES Qantas 121 Qantas 121 a percentage of average equity.
a percentage
dnata seeks
of to
average
provide
equity.
a higher
dnata
return
seekstotothe
provide
Ownera higher return to the Ow
Catering Group Others
Catering Total
Group Others Total by resorting to borrowings tobyfinance
resorting
its acquisitions.
to borrowings In to
2019,
finance
dnata
itsachieved
acquisitions.
a return
In 2019, dnata achieved a re
DNATA
AED m AED m AED m
AED m AEDAED
m m AED m AED m on equity of 19.2% (2018: 19.3%).
on equity of 19.2% (2018: 19.3%).
uisition-related costs Acquisition-related4costs 3 2 4 9 3 2 9
GROUP
tribution from acquiredContribution from acquired
nesses businesses
FINANCIAL
enue from acquisition date
INFORMATION Revenue
to 31 from acquisition date to 31
ch 2019 March 2019 453 50 113 453 616 50 113 616
EMIRATES
fromFINANCIAL
acquisition date to Loss
31 from acquisition date to 31
COMMENTARY
ch 2019 March 2019 (3) (18) (8) (3) (29) (18) (8) (29)
e acquisition
DNATA had takenIfplace
the acquisition had taken place
FINANCIAL
he beginning of the yearat the beginning of the year
COMMENTARY

enue Revenue 1,133 179 346

1,133 1,658 179 346 1,658
EMIRATES
t / (loss)
CONSOLIDATED Profit / (loss) 30 (10) (12) 30 8 (10) (12) 8
FINANCIAL
STATEMENTS
8 2018
| DNATA
May |2017, dnata acquired
CONSOLIDATED In aMay
100% 2017,
shareholding
dnata acquired
in ALXa 100%
Cargo shareholding
Center IAH LLCin ALX Cargo Center IAH LLC
| FINANCIAL
X"), through
| its wholy owned
STATEMENTS ("ALX"), subsidiary
through its
dnata
wholy
Aviation
ownedServices
subsidiary
US dnata
Inc. atAviation
a Services US Inc. at a
hase consideration of AED
purchase
12 m. ALX
consideration
primarily operates
of AED 12
a perishable
m. ALX primarily
cargo facility
operates a perishable cargo facility
ADDITIONAL
d atINFORMATION
Houston Airport based
(“IAH”).atThe
Houston
purchase
Airport
consideration
(“IAH”). The
is attributable
purchase consideration
to is attributable to
omer relationship and goodwill.
customer relationship and goodwill.

eptember 2017, dnata acquired

In September
100% ownership
2017, dnataofacquired
Destination
100%Asia
ownership
(Singapore)
of Destination Asia (Singapore)
Limited. The purchase consideration
Pte Limited. and
The the
purchase
assets consideration
and liabilities and
arising
thefrom
assets
andand liabilities arising from and
gnised on this acquisitionrecognised
are not significant.
on this acquisition are not significant.

189
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

EMIRATES
FINANCIAL
COMMENTARY

DNATA
FINANCIAL
COMMENTARY

EMIRATES

A D D I T I O N A L
CONSOLIDATED
FINANCIAL
STATEMENTS
190

DNATA
CONSOLIDATED
FINANCIAL

I N F O R M AT I O N
STATEMENTS

| ADDITIONAL
| INFORMATION

190
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

OVERVIEW

EMIRATES

DNATA

GROUP

FINANCIAL
INFORMATION

EMIRATES
FINANCIAL 1 9 2 E M I R AT E S T E N - Y E A R O V E R V I E W
COMMENTARY

DNATA 1 9 4 D N ATA T E N - Y E A R O V E R V I E W
FINANCIAL
COMMENTARY
196 GROUP TEN-YEAR OVERVIEW
EMIRATES
CONSOLIDATED
FINANCIAL
STATEMENTS 1 9 7 G R O U P CO M PA N I E S O F E M I R AT E S

DNATA
CONSOLIDATED 1 9 8 G R O U P CO M PA N I E S O F D N ATA
FINANCIAL
STATEMENTS
200 GLOSSARY
| ADDITIONAL
| INFORMATION

191
 Emirates ten-year overview
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Consolidated income statement 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
Revenue and other operating income AED m 97,907 92,322 85,083 85,044 88,819 82,636 73,113 62,287 54,231 43,455
OVERVIEW

Operating costs AED m 95,260 88,236 82,648 76,714 82,926 78,376 70,274 60,474 48,788 39,890
EMIRATES
- of which jet fuel AED m 30,768 24,715 20,968 19,731 28,690 30,685 27,855 24,292 16,820 11,908
- of which employee costs AED m 12,623 13,080 12,864 12,452 11,851 10,230 9,029 7,936 7,615 6,345
DNATA

GROUP Operating profit AED m 2,647 4,086 2,435 8,330 5,893 4,260 2,839 1,813 5,443 3,565
Profit attributable to the Owner AED m 871 2,796 1,250 7,125 4,555 3,254 2,283 1,502 5,375 3,538
FINANCIAL
INFORMATION
Consolidated statement of financial position
EMIRATES Non-current assets AED m 96,483 93,417 93,722 87,752 83,627 74,250 59,856 51,896 43,223 36,870
FINANCIAL
COMMENTARY
Current assets AED m 30,915 34,170 27,836 31,427 27,735 27,354 34,947 25,190 21,867 18,677
- of which cash assets AED m 17,037 20,420 15,668 19,988 16,885 16,561 24,572 15,587 13,973 10,511
DNATA
FINANCIAL Total assets AED m 127,398 127,587 121,558 119,179 111,362 101,604 94,803 77,086 65,090 55,547
COMMENTARY

EMIRATES Total equity AED m 37,743 37,046 35,094 32,405 28,286 25,471 23,032 21,466 20,813 17,475
CONSOLIDATED - of which equity attributable to the Owner AED m 37,149 36,454 34,508 31,909 27,886 25,176 22,762 21,224 20,606 17,274
FINANCIAL
STATEMENTS
192 Non-current liabilities AED m 52,190 49,975 48,082 48,250 48,595 43,705 40,452 30,574 22,987 19,552
Current liabilities AED m 37,465 40,566 38,382 38,524 34,481 32,428 31,319 25,046 21,290 18,520
DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS Consolidated statement of cash flows
Cash flow from operating activities AED m 10,528 14,134 10,425 14,105 13,265 12,649 12,814 8,107 11,004 8,328
ADDITIONAL
INFORMATION Cash flow from investing activities AED m (1,360) (10,977) (3,129) (2,361) (6,411) (4,257) (15,061) (10,566) (5,092) (577)
Cash flow from financing activities AED m (9,807) (6,442) (10,502) (7,975) (6,264) (7,107) 1,240 (201) (5,046) (2,982)
| EMIRATES
| TEN-YEAR Net change in cash and cash equivalents AED m (639) (3,285) (3,206) 3,769 590 1,285 (1,007) (2,660) 866 4,769
| OVERVIEW

DNATA Other financial data

TEN-YEAR
OVERVIEW Net change in cash assets AED m (3,383) 4,752 (4,320) 3,103 324 (8,011) 8,985 1,614 3,462 3,343
EBITDAR AED m 24,291 24,970 21,248 24,415 20,259 17,229 13,891 10,735 13,437 10,638
GROUP
TEN-YEAR
OVERVIEW
Borrowings and lease liabilities AED m 53,039 51,101 51,002 50,105 47,808 42,431 40,525 30,880 23,230 19,605
GROUP Less: Cash assets AED m 17,037 20,420 15,668 19,988 16,885 16,561 24,572 15,587 13,973 10,511
COMPANIES
OF EMIRATES Net debt AED m 36,002 30,681 35,334 30,117 30,923 25,870 15,953 15,293 9,257 9,094

GROUP
COMPANIES Capital expenditure AED m 13,437 8,496 12,632 16,723 19,873 21,142 13,378 13,644 12,238 8,053
OF DNATA

GLOSSARY

Notes :
1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 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.

192
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Key ratios 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
Operating margin % 2.7 4.4 2.9 9.8 6.6 5.2 3.9 2.9 10.0 8.2
OVERVIEW Profit margin % 0.9 3.0 1.5 8.4 5.1 3.9 3.1 2.4 9.9 8.1
Return on shareholder's funds % 2.4 7.9 3.8 23.8 17.2 13.6 10.4 7.2 28.4 21.6
EMIRATES EBITDAR margin % 24.8 27.0 25.0 28.7 22.8 20.8 19.0 17.2 24.8 24.5

Cash assets to revenue and other operating income % 17.4 22.1 18.4 23.5 19.0 20.0 33.6 25.0 25.8 24.2
DNATA

Net debt to equity ratio % 95.4 82.8 100.7 92.9 109.3 101.6 69.3 71.2 44.5 52.0
GROUP
Net debt (incl. aircraft operating leases) to equity ratio % 209.8 216.4 237.9 215.9 212.1 209.9 186.4 162.1 127.6 158.5
Net debt (incl. aircraft operating leases) to EBITDAR % 326.0 321.0 392.9 286.5 296.2 310.3 309.1 324.1 197.6 260.3
FINANCIAL Effective interest rate on borrowings and lease liabilities % 4.0 3.2 3.0 3.1 3.3 3.2 3.1 3.0 2.7 2.5
INFORMATION
Fixed to floating debt mix 65:35 72:28 75:25 92:8 85:15 94:6 90:10 89:11 89:11 83:17
EMIRATES
FINANCIAL Airline Operating Statistics
COMMENTARY Performance Indicators
Yield Fils per RTKM 219 213 204 218 245 250 249 251 232 211
DNATA
FINANCIAL Unit cost Fils per ATKM 146 139 132 132 158 162 167 166 147 136
COMMENTARY Unit cost excluding jet fuel Fils per ATKM 97 98 97 97 102 97 99 97 95 94
Breakeven load factor % 66.4 65.2 64.5 60.4 64.7 64.9 66.9 65.9 63.6 64.4
EMIRATES
CONSOLIDATED
FINANCIAL Fleet
STATEMENTS
Aircraft number 270 268 259 251 231 217 197 169 148 142
DNATA Average fleet age months 73 68 63 74 75 74 72 77 77 69
CONSOLIDATED
FINANCIAL
Production
STATEMENTS
Destination cities number 158 157 156 153 144 142 133 123 112 102
ADDITIONAL Overall capacity ATKM million 63,340 61,425 60,461 56,383 50,844 46,820 40,934 35,467 32,057 28,526
INFORMATION Available seat kilometres ASKM million 390,775 377,060 368,102 333,726 295,740 271,133 236,645 200,687 182,757 161,756
Aircraft departures number 203,281 201,858 204,543 199,754 181,843 176,039 159,892 142,129 133,772 123,055
| EMIRATES
| TEN-YEAR
| OVERVIEW Traffic
Passengers carried number '000 58,601 58,485 56,076 51,853 48,139 44,537 39,391 33,981 31,422 27,454
DNATA
TEN-YEAR Passenger seat kilometres RPKM million 299,967 292,221 276,608 255,176 235,498 215,353 188,618 160,446 146,134 126,273
OVERVIEW Passenger seat factor % 76.8 77.5 75.1 76.5 79.6 79.4 79.7 80.0 80.0 78.1
Cargo carried tonnes '000 2,659 2,623 2,577 2,509 2,377 2,250 2,086 1,796 1,767 1,580
GROUP
TEN-YEAR Overall load carried RTKM million 42,304 41,250 39,296 36,931 34,207 31,137 27,621 23,672 22,078 19,063
OVERVIEW Overall load factor % 66.8 67.2 65.0 65.5 67.3 66.5 67.5 66.7 68.9 66.8

GROUP
COMPANIES
Employee
OF EMIRATES Average employee strength-EK number 60,282 62,356 64,768 61,205 56,725 52,516 47,678 42,422 38,797 36,652
Average employee strength-airline number 47,808 49,740 51,628 48,023 44,571 41,471 38,067 33,634 30,258 28,686
GROUP AED '000
Revenue per airline employee 1,975 1,784 1,580 1,717 1,939 1,938 1,868 1,796 1,738 1,459
COMPANIES
OF DNATA

GLOSSARY

Notes :
1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 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.

193
 dnata ten-year overview
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Consolidated income statement 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
Revenue and other operating income AED m 14,419 13,074 12,182 10,630 9,160 7,565 6,622 5,755 4,406 3,160
OVERVIEW
Operating costs AED m 13,141 11,878 10,958 9,569 8,155 6,702 5,807 4,971 3,906 2,601
EMIRATES - of which employee costs AED m 5,386 5,055 4,654 3,847 3,351 3,251 2,771 2,488 2,032 1,387
- of which travel services direct costs AED m 2,476 2,135 1,913 1,951 1,458 84 n/a n/a n/a n/a
DNATA - of which airport operations direct
AED m 1,350 1,293 1,138 949 824 883 798 699 582 442
costs
GROUP - of which inflight catering direct cost AED m 1,070 843 794 715 735 663 601 451 241 35

FINANCIAL Operating profit AED m 1,278 1,196 1,224 1,061 1,005 863 815 784 500 559
INFORMATION Profit attributable to the Owner AED m 1,445 1,317 1,210 1,054 906 829 819 808 576 613

EMIRATES
FINANCIAL Consolidated statement of financial position
COMMENTARY Non-current assets AED m 6,196 5,718 5,372 4,590 4,219 4,364 3,594 3,759 3,072 1,934
DNATA Current assets AED m 8,895 8,574 6,675 6,388 5,427 4,303 3,977 3,360 3,328 2,704
FINANCIAL - of which cash assets AED m 5,122 4,945 3,398 3,465 3,148 2,434 2,396 1,999 2,083 1,982
COMMENTARY
Total assets AED m 15,091 14,292 12,047 10,978 9,646 8,667 7,571 7,119 6,400 4,638
EMIRATES
CONSOLIDATED
FINANCIAL
Total equity AED m 8,027 7,282 6,706 5,554 4,853 4,756 4,097 3,683 3,282 3,194
STATEMENTS
194 - of which equity attributable to the Owner AED m 7,911 7,103 6,539 5,387 4,788 4,674 4,028 3,614 3,209 3,194
Non-current liabilities AED m 2,126 1,734 1,542 1,362 1,213 1,386 1,351 1,275 1,115 672
DNATA
CONSOLIDATED Current liabilities AED m 4,938 5,276 3,799 4,062 3,580 2,525 2,123 2,161 2,003 772
FINANCIAL
STATEMENTS
Consolidated statement of cash flows
ADDITIONAL Cash flow from operating activities AED m 1,417 1,858 1,281 1,390 1,058 1,125 1,162 1,167 901 764
INFORMATION
Cash flow from investing activities AED m 78 (2,157) (961) (1,076) (697) 316 (1,910) (431) (1,333) 391
EMIRATES Cash flow from financing activities AED m (643) 78 (146) (496) (344) (443) (343) (718) (96) (73)
TEN-YEAR
OVERVIEW Net change in cash and cash equivalents AED m 852 (221) 174 (182) 17 998 (1,091) 18 (528) 1,082

| DNATA Other financial data

| TEN-YEAR
| OVERVIEW Cash assets AED m 5,122 4,945 3,398 3,465 3,148 2,434 2,396 1,999 2,083 1,982

GROUP
TEN-YEAR
OVERVIEW

GROUP
COMPANIES
OF EMIRATES

GROUP
COMPANIES
OF DNATA

GLOSSARY

Notes :
1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 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.

194
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Key ratios 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
Operating margin % 8.9 9.1 10.0 10.0 11.0 11.4 12.3 13.6 11.3 17.7
OVERVIEW Profit margin % 10.0 10.1 9.9 9.9 9.9 11.0 12.4 14.0 13.1 19.4
Return on shareholder's funds % 19.2 19.3 20.3 20.7 19.2 19.1 21.4 23.7 18.0 21.3
EMIRATES

DNATA Employee
Average employee strength number 45,004 41,007 40,978 34,117 27,428 22,980 20,229 18,356 17,971 13,298
GROUP Revenue per employee AED '000 320 319 297 333 399 356 327 322 323 266

FINANCIAL
Performance Indicators
INFORMATION
Airport
EMIRATES Aircraft handled number 698,739 659,591 623,611 389,412 298,298 288,335 264,950 253,434 232,585 192,120
FINANCIAL
COMMENTARY Cargo handled tonnes '000 3,091 3,083 2,844 2,056 1,671 1,604 1,570 1,543 1,494 1,121
Catering
DNATA
FINANCIAL Meals uplifted number '000 70,889 55,718 60,747 57,062 57,687 41,275 28,584 26,708 11,743
COMMENTARY
Travel services
EMIRATES Total transaction value (TTV) AED m 11,459 11,281 10,687 11,747 9,782 5,892 5,357 2,630 1,610 1,559
CONSOLIDATED
FINANCIAL
STATEMENTS

DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

EMIRATES
TEN-YEAR
OVERVIEW

| DNATA
| TEN-YEAR
| OVERVIEW

GROUP
TEN-YEAR
OVERVIEW

GROUP
COMPANIES
OF EMIRATES

GROUP
COMPANIES
OF DNATA

GLOSSARY

Notes :
1.The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 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

195
 Group ten-year overview
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Financial highlights 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
Revenue and other operating income* AED m 109,255 102,409 94,706 92,896 96,053 87,766 77,536 66,149 57,224 45,405
OVERVIEW Operating costs* AED m 105,330 97,127 91,047 83,505 89,155 82,643 73,882 63,552 51,281 41,281
Operating profit AED m 3,925 5,282 3,659 9,391 6,898 5,123 3,654 2,597 5,943 4,124
EMIRATES
Operating margin % 3.6 5.2 3.9 10.1 7.2 5.8 4.7 3.9 10.4 9.1
Profit attributable to the Owner AED m 2,316 4,113 2,460 8,179 5,461 4,083 3,102 2,310 5,951 4,151
DNATA
Profit margin % 2.1 4.0 2.6 8.8 5.7 4.7 4.0 3.5 10.4 9.1
GROUP Dividend to the Owner AED m 500 2,000 - 2,500 2,569 1,026 1,000 850 2,208 1,556

FINANCIAL Financial position

INFORMATION
Total assets** AED m 142,267 141,625 133,281 129,989 120,886 110,100 102,188 84,127 71,402 60,147
EMIRATES Cash assets AED m 22,159 25,365 19,066 23,453 20,033 18,995 26,968 17,586 16,056 12,493
FINANCIAL
COMMENTARY
Employee data
DNATA
FINANCIAL Average employee strength number 105,286 103,363 105,746 95,322 84,153 75,496 67,907 60,778 56,768 49,950
COMMENTARY
* After eliminating inter company income/expense of the year
EMIRATES
CONSOLIDATED ** After eliminating inter company receivables/payables as at year end
FINANCIAL
STATEMENTS
196

DNATA
CONSOLIDATED
FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

EMIRATES
TEN-YEAR
OVERVIEW

DNATA
TEN-YEAR
OVERVIEW

| GROUP
| TEN-YEAR
| OVERVIEW

GROUP
COMPANIES
OF EMIRATES

GROUP
COMPANIES
OF DNATA

GLOSSARY

Notes :
1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the
effective dates applicable to the Emirates Group.
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.

196
 Group companies of Emirates
THE EMIRATES GROUP
ANNUAL REPORT

2018-19 Hotel operations, food and

Air transportation related services Consumer goods beverage operations and others
Emirates Emirates Emirates
100% Maritime and Mercantile International
100% The High Street LLC (UAE) 100% Emirates Hotels (Australia) Pty Ltd
OVERVIEW (Holding LLC) (UAE)

100% Transguard Aviation Security LLC (UAE) 100% MMI Tanzania PVT Ltd 50% Lanka Premium Beverage PVT Limited 100% Emirates Hotel LLC (UAE)
EMIRATES (Sri Lanka)

49% Independent Wine & Spirit (Thailand) 100% Emirates Land Development Services LLC
50% Emirates - CAE Flight Training LLC (UAE) 100% Queen OS Trading FZE (UAE)
DNATA Co. Ltd (UAE)

40% Diamond Wines & Spirits PTE. Ltd 100% Emirates Leisure Retail (Holding) LLC
50% CAE Middle East Pilot Services LLC (UAE) 90% Seyvine Ltd (Seychelles)
GROUP (Singapore) (UAE)

81.5% Prembev International FZE (UAE) 40% Titanium International Wines & Spirits 100% Emirates Leisure Retail (Australia) Pty Ltd
FINANCIAL PTE. Ltd (Singapore)
INFORMATION Catering services
100% Brand 2 Consumer (Pty) Ltd 40% Velocity Wines & Spirits PTE. Ltd 100% ELRA Properties Pty Ltd (Australia)
EMIRATES
Emirates (South Africa) (Singapore) 100% Hudcom Pty Ltd (Australia)
FINANCIAL 100% Hudsons Adelaide Airport Pty Ltd (Australia)
90% Emirates Flight Catering Co. (LLC) (UAE) 68.7% Maritime and Mercantile International
COMMENTARY
LLC (UAE) 15% Savero Distributors Ltd (Cyprus) 100% Hudsons Airport Launceston Pty Ltd (Australia)
100% Hudsons Albury Pty Ltd (Australia)
DNATA
FINANCIAL 60% Emirates Crop One (LLC) (UAE) 100% Duty Free Dubai Ports FZE (UAE) 100% Hudsons Bendigo Pty Ltd (Australia)
COMMENTARY 100% Hudsons Bourke Spring Pty Ltd (Australia)

100% Harts International LLC (UAE) 100% Hudsons Elizabeth (Melb) Pty Ltd (Australia)
EMIRATES
100% Hudsons Epworth Richmond Pty Ltd (Australia)
CONSOLIDATED
FINANCIAL 100% Hudsons Gawler Pty Ltd (Australia)
STATEMENTS 100% Golden Globe (BVI) Ltd
100% Hudsons George (Bris) Pty Ltd (Australia)
100% Hudsons Grenfell Currie Pty Ltd (Australia)
DNATA 50% Arabian Harts International Ltd
100% Hudsons Hospital Australia Pty Ltd (Australia)
CONSOLIDATED (BVI)*
FINANCIAL 100% Hudsons Hospitals Nth Adelaide Pty Ltd (Australia)
STATEMENTS 100% Harts International Retailers (Middle 100% Hudsons Hospitals S.A. Pty Ltd (Australia)
East) FZE (UAE) 100% Hudsons Hospitals Victoria Pty Ltd (Australia)
ADDITIONAL 100% Hudsons King William Pty Ltd (Australia)
INFORMATION 100% Maritime and Mercantile International
FZE (UAE) 100% Hudsons Launceston Pty Ltd (Australia)

EMIRATES 100% Hudsons Little Collins Flinders Pty Ltd (Australia)

TEN-YEAR 70% Oman United Agencies LLC 100% Hudsons Liverpool Pty Ltd (Australia)
OVERVIEW 100% Hudsons Murray Pty Ltd (Australia)
92.5% Sohar Catering & Supplies Co. LLC 100% Hudsons Shepparton Pty Ltd (Australia)
DNATA (Oman) 100% Hudsons WA Airports Pty Ltd (Australia)
TEN-YEAR
OVERVIEW 100% Hudsons William Pty Ltd (Australia)
67.1% Onas Trading LLC (Oman)
GROUP 100% Emirates Leisure Retail (Singapore)
TEN-YEAR Pte Ltd
50% Sirocco FZCO (UAE)
OVERVIEW
100% Emirates Leisure Retail (New Zealand)
| GROUP 49% Fujairah Maritime and Mercantile Pte Ltd
| COMPANIES International LLC (UAE)
| OF EMIRATES 68.7% Emirates Leisure Retail LLC (UAE)
50% Focus Brands Ltd (BVI)
GROUP
100% Community Club Management FZE
COMPANIES
(UAE)
OF DNATA

GLOSSARY 51% Premier Inn Hotels LLC (UAE)

Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different.
The country of incorporation is same as country of principal operations.
*Country of principal operations is UAE. 197
 Group companies of dnata
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Airport Operations Catering
dnata dnata
100% Dnata Aviation Services Limited (UK) 100% dnata, Inc. (Philippines) 100% Dnata Catering Services Limited (UK)
OVERVIEW

100% Airline Cleaning Services Pty Ltd 100% dnata Clark Inc. (Philippines) 100% Alpha Flight Group Limited (UK) 100% En Route International Limited (UK)
EMIRATES (Australia)

100% Dnata International Airport Services Pte 100% Alpha Flight Services Pty Ltd
100% dnata Aviation Services Canada Limited 100% En Route Belgium NV
DNATA Ltd (Singapore) (Australia)

50% G.T.A. Dnata Ground Handling Limited 100% CIAS International Pte Ltd (Singapore) 100% Alpha ATS Pty Ltd (Australia) 100% En Route International Australia Pty, Ltd
GROUP (Canada)

50% G.T.A. Dnata Ground Handling YVR 100% dnata Catering Australia 100% En Route International General Trading
100% dnata Singapore Pte Ltd (Singapore)*
FINANCIAL Limited (Canada) Subsidiary 2 Pty Ltd 1 LLC (UAE)
INFORMATION
50% G.T.A. Dnata World Cargo Limited 20% Guangzhou Baiyun International 100% dnata Catering Australia 100% En Route International Limited
(Canada) Airport Ground Handling Services Co. Ltd Subsidiary 1 Pty Ltd 2 (Hong Kong)
EMIRATES
FINANCIAL (P. R. China)
COMMENTARY 100% dnata Aviation Services US Inc. (USA) 100% Snap Fresh Pty Ltd (Australia) 100% En Route International South Africa
(Pty) Ltd
100% Dubai Express LLC (UAE)
DNATA
FINANCIAL 100% ALX Cargo Centre IAH LLC (USA) 100% Alpha Flight US, Inc. 100% En Route International USA, Inc.
COMMENTARY 100% Freightworks Logistics LLC (UAE)

EMIRATES
100% dnata Aviation USA Inc. 100% Alpha In flight US, LLC
CONSOLIDATED 95% Air Dispatch (CLC) s.r.o. (Czech Republic)
FINANCIAL 100% Ground Services International Inc. 85% dnata Catering US, LLC (USA) 3 100% dnata s.r.l (Italy)
STATEMENTS
198 (USA)
100% Air Dispatch (CLC) Spolka z.o.o. (Poland)
DNATA 100% Metro Air Service Inc. (USA) 100% 121 Group Holdings LLC (USA) 80% Alpha Flight a.s. (Czech Republic)
CONSOLIDATED 80% Dnata Airport Services Kurdistan
FINANCIAL (Cayman Islands)
STATEMENTS 100% dnata BV (The Netherlands) 100% 121 at BNA LLC (USA) 64.2% dnata Catering SRL (Romania)
100% Dnata for Airport Services Ltd
ADDITIONAL (Kurdistan, Iraq)
INFORMATION 100% dnata NV (Belgium) 100% 121 at Oxford LLC (USA) 50% Alpha LSG Ltd (UK)
70% Dubz Holding Limited (BVI)
EMIRATES 100% dnata US Inflight Catering
TEN-YEAR 100% dnata Limited (UK) 100% Alpha Flight UK Ltd
100% Delivering Your Bags Passenger LLC (USA)
OVERVIEW
Luggage Delivery LLC (UAE)
DNATA 100% dnata Cargo Limited (UK) 100% North Salem Deli LLC (USA) 49% Alpha Flight Services UAE LLC
TEN-YEAR 51% Bolloré Logistics LLC (UAE)
OVERVIEW
100% dnata Ground Limited (UK) 100% Dnata Catering Canada Limited 35.9% Jordan Flight Catering Company Ltd
GROUP 50% Dnata-PWC Airport Logistics LLC (UAE)
TEN-YEAR 35.7% Airports Bureau Systems Ltd (UK) 100% dnata Catering Ireland Ltd 28.7% Silver Wings OOD (Bulgaria)
OVERVIEW
50% Gerry’s Dnata (Private) Ltd (Pakistan)
GROUP 100% dnata Pty Ltd (Australia) 99.2% Consortium Alpha DZZD
COMPANIES (Bulgaria)
OF EMIRATES
100% dnata Airport Services Pty Ltd. 100% Dnata Switzerland AG
(Australia)
| GROUP
| COMPANIES 100% Airport Handling Services Australia
| OF DNATA 30% GVAssistance SA (Switzerland)
Pty Ltd
GLOSSARY
70% Airport Handling SpA (Italy)

70% RM Servicos Auxilliares de Transporte

1 Previously Qantas Catering Group Limited
2 Previously Q Catering Limited
3 Previously 121 Group International LLC
198
Aereo Ltda (Brazil) Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different.
The country of incorporation is same as country of principal operations.
* Also provides catering services
 Group companies of dnata
THE EMIRATES GROUP
ANNUAL REPORT

2018-19
Travel services Others
dnata / dnata World Travel dnata / dnata World Travel dnata
100% Cleopatra International Travel WLL 100% dnata Travel Inc. (Philippines) 100% Tropo GmbH(Germany) 100% Plafond Fit Out LLC (UAE)
OVERVIEW (Bahrain)

EMIRATES 100% dnata Aviation Services Holdings Limited 100% Dnata Travel (UK) Limited 75% Super Bus Tourism LLC (UAE) 100% Transecure LLC (UAE)

70% dnata Travel Company Limited (Saudi

100% Destination Asia (Singapore) Pte Limited 100% DN Travel ApS (Denmark) 50% Transguard Group LLC (UAE)
DNATA Arabia)

29% Destination Asia Destination 100% dnata World Travel Limited (UK) 100% dnata Aviation Services Company 100% CASS International General Trading LLC
GROUP Management Sdn Bhd (Malaysia) Limited (Saudi Arabia) (UAE)

100% Travel Technology Investments Limited

FINANCIAL 25% Destination Asia Japan Limited (UK) 51% Imagine Enterprises Limited (UK) 50% Transguard Cash LLC (UAE)
INFORMATION
25% Destination Asia Ltd (Hong Kong) 100% Travel Republic Holdings Limited (UK) 100% Imagine Cruising Limited (UK) 100% Transguard Cash Services LLC (UAE)
EMIRATES
FINANCIAL
100% EAP Shared Services d.o.o.Beograd 100% Transguard Group International LLC
COMMENTARY 25% Destination Asia (Thailand) Limited (Serbia) 100% Imagine Transport Limited (UK) (UAE)
DNATA 100% Maritime and Mercantile International
FINANCIAL 25% Destination Asia (Vietnam) Limited Travel LLC (UAE) 100% Imagine Cruising Pty Ltd (Australia) 100% Transguard Group Cash KSA LLC (UAE)
COMMENTARY
25% Destination Group Asia (Hong Kong) 76.9% Oman United Agencies Travel LLC 51% Transguard Group International LLC
100% Imagine Cruising (Pty) Ltd (South Africa)
EMIRATES Limited (Oman)
CONSOLIDATED
FINANCIAL 25% DMC Management Asia Services Limited 100% Sama Travel & Services International 100% Imagine Cruising (WA) Pty Ltd 9.1% Canary Topco Ltd (UK)
STATEMENTS (Hong Kong) LLC (Oman) (Australia)

DNATA 25% PT Destination Asia (Indonesia) 50% Moon Travel LLC (Oman) 50% Dunya Travel LLC (UAE)
CONSOLIDATED
FINANCIAL
STATEMENTS 100% dnata International Private Ltd (India) 100% Najm Travel LLC (UAE)* 100% Dunya Air Services LLC (UAE)
ADDITIONAL
INFORMATION 100% dnata Marketing Services Pvt Ltd (India) 100% Travel Partners LLC (UAE) 50% G Travel International LLC (UAE)

EMIRATES 100% dnata Travel and Tourism WLL 100% Travel Partners Iberian, Sociedad
TEN-YEAR 50% Najm Travels LLC (Afghanistan)
(Bahrain) Limitada (Spain)
OVERVIEW

DNATA 100% dnata Travel Holdings UK Limited 100% Travel Partners (London) Limited (UK) 50% Travel Counsellors LLC (UAE)
TEN-YEAR
OVERVIEW
100% Airline Network Limited (UK)
GROUP
TEN-YEAR 100% Gold Medal International Limited (UK) 100% The Global Travel Group Limited (UK)
OVERVIEW

GROUP 100% Gold Medal Travel Group Ltd (UK) 100% Travel 2 Limited (UK)
COMPANIES
OF EMIRATES
100% Gold Medal Transport Ltd (UK) 100% Travelbag Limited (UK)
| GROUP
| COMPANIES
| OF DNATA 100% Personalised Travel Services Limited (UK) 100% Travel Republic Ltd (UK)

GLOSSARY
100% Stella Global UK Limited 73.41% BD4 Travel Limited (UK)

100% Stella Travel Services (UK) Limited
100% Sunmaster Limited (UK)
100% BD4 GmbH (Germany)
Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different.
The country of incorporation is same as country of principal operations.
14.29% Travel Technology Initiative Limited
*Country of principal operations is Iraq.
(UK) 199
 Glossary
THE EMIRATES GROUP
ANNUAL REPORT

2018-19

A E O T
OVERVIEW
Acquisitions – The sum of purchase EBITDAR – Operating profit before Operating cash margin – Cash Total revenue – Sum of revenue and
EMIRATES consideration for acquisition of depreciation, amortisation and aircraft generated from operating activities other operating income.
subsidiaries and investments made in operating lease rentals. expressed as a percentage of the sum of
Total transaction value – The sum of
DNATA associates and joint ventures. revenue and other operating income.
EBITDAR margin – EBITDAR expressed gross revenue from agency and package
ASKM (Available Seat Kilometre) – as a percentage of the sum of revenue Operating margin – Operating profit sales, net of government taxes.
GROUP Passenger seat capacity measured in and other operating income. expressed as a percentage of the sum of
Traffic – see RTKM
seats available multiplied by the distance revenue and other operating income.
Equity ratio – Total equity divided by
FINANCIAL flown. Transport revenue – The sum of
INFORMATION total assets. Overall load factor – RTKM divided by
passenger, cargo and excess baggage
ATKM (Available Tonne Kilometre) ATKM.
F revenue.
EMIRATES – Overall capacity measured in tonnes
FINANCIAL
available for carriage of passengers P
COMMENTARY
Fixed to floating debt mix – Ratio of U
and cargo load multiplied by the
DNATA distance flown. fixed rate debt to floating rate debt. Passenger seat factor – RPKM divided
Unit cost (Fils per ATKM) – Operating costs
FINANCIAL The ratio is based on net debt including by ASKM.
COMMENTARY (airline only) incurred per ATKM.
B aircraft operating leases.
Passenger yield (Fils per RPKM) –
EMIRATES
Free cash flow – Cash generated from Passenger revenue divided by RPKM. Y
CONSOLIDATED Breakeven load factor – The load factor
FINANCIAL operating activities less cash used in
STATEMENTS
200 at which revenue will equal operating Profit margin – Profit attributable to the Yield (Fils per RTKM) – Revenue (airline
investing actvities adjusted for the
costs. Owner expressed as a percentage of sum only) earned per RTKM.
DNATA movement in short term bank deposits.
CONSOLIDATED
of revenue and other operating income.
FINANCIAL C Freight yield (Fils per FTKM) – Cargo
STATEMENTS revenue divided by FTKM. R
Capacity – see ATKM
ADDITIONAL FTKM - Cargo tonnage uplifted Return on shareholder’s funds – Profit
INFORMATION Capital expenditure – The sum
multiplied by the distance carried. attributable to the Owner expressed as a
of additions to property, plant and
EMIRATES percentage of shareholder’s funds.
TEN-YEAR equipment and intangible assets N
OVERVIEW excluding goodwill. RPKM (Revenue Passenger Kilometre)
Net debt – Borrowings and lease – Number of passengers carried
DNATA Capitalised value of aircraft operating
TEN-YEAR liabilities (current and non-current) net multiplied by the distance flown.
OVERVIEW lease costs – 60% of future minimum
of cash assets.
lease payments for aircraft on operating RTKM (Revenue Tonne Kilometre) –
GROUP lease. Net debt to equity ratio – Net debt in Actual traffic load (passenger and cargo)
TEN-YEAR
OVERVIEW relation to total equity. carried measured in terms of tonnes
Cash assets – The sum of short term
multiplied by the distance flown.
GROUP bank deposits and cash and cash Net debt including aircraft operating
COMPANIES equivalents. leases - The sum of net debt and the
OF EMIRATES S
capitalised value of aircraft operating
GROUP D lease costs. Shareholder’s funds – Average of
COMPANIES
opening and closing equity attributable
OF DNATA Dividend payout ratio – Dividend
to the Owner.
accruing to the Owner divided by profit
| GLOSSARY
attributable to the Owner.

200
Emirates P.O. Box 686, Dubai, United Arab Emirates, emirates.com
dnata P.O. Box 1515, Dubai, United Arab Emirates, dnata.com
ekgroup.com