Investor presentation october 2011

1ConfidentialKingfisher Airlines Ltd.

October 2011

Investor UpdateUpdated as of 15th Nov 2011


Disclaimer

This presentation has been prepared by and is the sole responsibility of the management of Kingfisher Airlines Limited (the “Company”). Thispresentation and any information made available orally or in writing at the presentation is strictly confidential and may not be copied, published,distributed or transmitted (wholly or in part) or disclosed by its recipients to any other person for any purpose. Failure to comply with this restrictionmay constitute a violation of applicable securities laws. Copies of this document will be collected after the presentation.

This presentation has been prepared for information purposes and does not constitute or form part and should not be construed as, an offer orinvitation to buy or sell any securities, or any solicitation of an offer to purchase or subscribe for, any securities to any person in any jurisdiction towhom or in which such offer or solicitation is unlawful, nor shall this presentation or any part of it form the basis of, or be relied on in connection with,any contract or investment decision in relation to any securities. Certain statements, beliefs and opinions contained in this presentation or anyinformation made available orally or in writing at the presentation are or may be forward-looking statements. Forward-looking statements can beidentified by the use of forward-looking terminology, including, without limitation, the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”,“plans”, “goal”, “target”, “aim”, “may”, “will”, “would”, “could”, “should” or, in each case, their negative or other variations or comparable terminology.These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks anduncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company’sability to control or predict. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not to place undue relianceon these forward-looking statements. Forward-looking statements are not guarantees of future performance. No representation is made that any ofthese statements or forecasts will come to pass or that any forecast result will be achieved.

Your are cautioned not to place any reliance on these forward-looking statements. The Company is not under any obligation and expressly disclaimsany intention or obligation to update or revise any forward-looking statements, whether as a result of future information, future events or otherwise.

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Disclaimer (Contd.)

This presentation is not an invitation nor is it intended to be an inducement to engage in investment activity for the purpose of section 21 of the FinancialServices and Markets Act 2000 (as amended) of the United Kingdom (the “FSMA”). To the extent that this presentation does constitute an inducement toengage in any investment activity included within this press release, it is directed only at (i) persons who are outside the United Kingdom, (ii) persons who areinvestment professionals within the meaning of article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)of the United Kingdom (the “Financial Promotion Order”); (iii) persons who fall within articles 49(2)(a) to (d) (“high net worth companies, unincorporatedassociations etc.”) of the Financial Promotion Order; and (iv) any other persons to whom this announcement for the purposes of section 21 of FSMA canotherwise lawfully be made (all such persons together being referred to as “Relevant Persons”), and must not be acted on or relied upon by persons otherthan Relevant Persons. This presentation is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC (such Directive, togetherwith any applicable implementing measures in the relevant home Member State under such Directive, the “Prospectus Directive”). A prospectus will beprepared and made available to the public in accordance with the Prospectus Directive if any securities are issued and, when published, can be obtained inaccordance with the Prospectus Directive. Investors should not subscribe for or purchase any securities referred to in this press release except on the basis ofthe information contained in the prospectus relating to the securities.

By viewing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of theCompany and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businessof the Company.

Except as otherwise noted, all of the information contained herein is preliminary and indicative and is based on management information, current plans andestimates in the form as is available in the public domain. Industry and market-related information is obtained or derived from industry publications and hasnot been verified by us. No reliance may be placed by any person for any purpose whatsoever on the information or opinions contained or expressed in thepresentation or on the completeness, accuracy or fairness of such information and opinions. The Company may alter, modify or otherwise change in anymanner the content of this presentation, without liability or notice to any person of such revision or changes. Persons relying on the information in thispresentation should do so at their own risk and the Company shall not be responsible for any kind of consequences or liability to any person arising out of,relying and acting upon any such information.

The information and opinions contained in this document are provided as at the date of this document and are subject to change without notice.

By accepting or accessing this presentation or attending any presentation or delivery of this presentation you agree to be bound by the foregoing limitationsand conditions and, in particular, will be taken to have represented, warranted and undertaken that you have read and agreed to comply with the contents ofthis notice.


Agenda

• Business Update

– Domestic

– International

• Go Forward Plan

• Performance Highlights


Kingfisher Airlines Overview

• Kingfisher Airlines has become the largest airline in the Indian skies by number of routes in ashort span of seven years (starting with Air Deccan in 2003 and subsequent integration oferstwhile Kingfisher with Air Deccan)

• The pace of growth was accompanied by challenges for the company given the integration of AirDeccan, an astronomic rise in fuel prices & the economic slowdown

• Given these challenges, the company did not deem it appropriate to raise capital over the last 1-2years. The economic environment is now buoyant with strong demand in the aviation industry

• Kingfisher operations have stabilized through various turnaround initiatives; EBITDA marginshave improved from -32.9% in FY09 to +2.2% in FY11

• Debt recast has been completed and received shareholders’ approval to raise additional capitalthrough equity based securities


Route Network

• With 60 domesticdestinations to offer, KFAhas the widest reach inIndia

• Flying to all majorbusiness & leisuredestinations in thecountry covering > 95%of the addressablepassenger base

• 10 unique destinations inIndia not serviced by anyother airline

60 domestic &8 international destinations*

66 aircraft*

374 flights a day*

*As of 30th June 2011


Market Performance – Domestic


Domestic Operating Environment

• The industry exhibited strong demand growth; passenger traffic increased by over 18% in FY 11 (overFY10). Capacity in the industry grew by 11% for the same period and continued to lag behind demand

• In Q1 FY12, the domestic demand grew by 15%, a bit slower than capacity growth of 19%. However,Kingfisher managed to outperform the industry with a 4pt LF increase YOY vs. a 2pt decline for theindustry.

• The demand growth coupled with capacity lag has led to increase in industry load factors to 78% (6percentage points over last year)

• Yields have remained stable over the year and premium traffic has continued to grow. DomesticPassenger RASK is up by 8% Q4 FY11 over Q4 FY10 despite some aggressive pricing by competitors

• Crude oil price has been on upward trend increasing from USD 85/bbl to more than USD 110/bbl overthe last fiscal year

Source: DGCA data

Domestic


Kingfisher has consistently increased load factors since Q2FY09 & maintained a steady “effective market share” …

Source: DGCANote: Market share/capacity share calculated on a RPKM/ASKM basis

Domestic

1.010.91

0.99 1.01 1.00 1.04 1.00 1.01 1.01

1.151.06 1.08 1.09

0.800.901.001.101.201.301.401.50

Q1 Q2 Q3 Q4FY09 Q1 Q2 Q3 Q4FY10 Q1 Q2 Q3 Q4FY11 Q1

'Effective Market Share'Market Share/Capacity Share

68%

54%

61%

66%

70%

72%

76% 74%81% 82%

87% 83% 85%

67%61% 62%

65%

70%

68%

75% 73%

80% 69% 81%76% 76%

50%55%60%65%70%75%80%85%90%


Load Factor

KF LF% Industry LF% excluding KF


4,201

3,5983,534

3,3923,253

2,830 2,7762,950

2,861

2,332

2,6172,777

3007

2,000

2,500

3,000

3,500

4,000

4,500


ASK

Ms

(mn)

…Despite a significant reduction in capacity

First mover to rationalizeindustry capacity post Deccan merger

Second round of capacity rationalizationto balance demand supply Aircraft grounded due to

technical considerations

Source: DGCA

Capacity

• Current utilization of the Airbus A320 family stands at 11.6 hrs/day & of the ATR family stands at10.9 hrs/day

10 out of 14 A320family groundedaircrafts flying as of31st March 2011

Domestic

3,157

EntireCapacityFlying


3.193.50

3.72

3.27

3.483.31

3.86 3.79

4.26 4.13 4.19 4.08

4.50

3.74

4.093.95

3.44

3.36 2.74

3.70 3.69 3.73

3.23

4.033.51

3.72

2.50

3.00

3.50

4.00

4.50

5.00


KFA Jet +Jetlite*

19.8%

17.8%

7.7%

14.9%6.1%

19.6%

14.0%

Jun/11

Spicejet

Indigo

Go Air

Air India

Jetlite

Jet

Kingfisher

FY09 FY10 FY11 FY11 FY12

Q1 Q2 Q3 Q4 Q1

RASK 3.27 3.61 4.17 4.26 4.13 4.19 4.08 4.50

YOY% 19% 10% 16% 22% 25% 9% 8% 6%

Domestic Passenger RASK

Kingfisher has shown a steady revenue growth over the lastfew years and has managed to outpace competition

Source: DGCA ; *Jet+Jetlite data is provided in the investor reports on the websiteNote: Jet+Jetlite Pax Revenue = RRPKM * RPKM

• Kingfisher has retained the largest market share of all Indian carriers domestic operations per DGCA

Market Share

Passenger RASK

Domestic


As a result, Kingfisher has steadily bridged the financialperformance gap on domestic operations as compared to peers

EBITDAR & EBITDA margins calculated on Total Revenue for both carriers

KFA (Rs.) FY09 FY10 FY11 FY11 FY12Q1 Q2 Q3 Q4 Q1

EBITDARMargin -5% 13% 20% 24% 24% 22% 9% 15%

EBITDAMargin -25% -6% 5% 11% 8% 7% -6% 3%

Pax RASK 3.27 3.61 4.17 4.26 4.13 4.19 4.08 4.50

Non-FuelEBITDACASK

2.70 2.95 3.00 2.65 3.21 3.11 3.08 2.75

Non-FuelEBITDARCASK

2.00 2.22 2.31 2.03 2.43 2.42 2.41 2.13

Jet+Jetlite*(Rs.) FY09 FY10 FY11 FY11 FY12

Q1 Q2 Q3 Q4 Q1EBITDARMargin 2% 18% 17% 21% 17% 25% 4% 6%

EBITDAMargin -10% 5% 7% 11% 6% 16% -5% -3%

Pax RASK 3.81 3.38 3.63 3.73 3.23 4.03 3.51 3.72

Non-FuelEBITDACASK

3.10 2.62 2.51 2.47 2.42 2.41 2.74 2.40

Non-FuelEBITDARCASK

2.57 2.11 2.09 2.02 1.97 2.02 2.34 2.02

All Figures in INR

*Source: Jet+Jetlite published financials

Domestic

1.21 1.221.39

1.61

1.29 1.34

1.331.64

1.23 1.291.45

1.51

1.331.67

1.28

1.55

-0.200.400.600.801.001.201.401.601.802.002.20

FY09 FY10 FY11 Q1 Q2 Q3 Q4 Q1FY12

Pax RASK/Non-Fuel EBITDA CASK

KF Jet + Jetlite*

1.64 1.621.80

2.10

1.70

1.73

1.69

2.11

1.481.60

1.74 1.841.64

2.00

1.50

1.84

-0.200.400.600.801.001.201.401.601.802.002.20

FY09 FY10 FY11 Q1 Q2 Q3 Q4 Q1FY12

Pax RASK/ Non-Fuel EBITDAR CASK

KF Jet + Jetlite*

FY11 FY11


…leading to a significant improvement in operatingperformance

3.494.00

4.76 4.68 4.97 4.884.53

-

1.00

2.00

3.00

4.00

5.00

6.00

FY09 FY10 FY11 Q1 Q2 Q3 Q4FY11

INR

Total RASK

4.364.22

4.50

4.16

4.56 4.52

4.78

3.80

4.00

4.20

4.40

4.60

4.80

5.00


INR

EBITDA CASK

(1,292)

(260)

271150 96 94 (70)

(1,400)

(1,200)

(1,000)

(800)

(600)

(400)

(200)

-

200

400


Rs. i

n cr

s

EBITDA

Domestic


Kingfisher leads in operational efficiency among the listedIndian carriers measured via EBITDA / EBITDAR

Source: Jet Airways quarterly investor reports ;Spicejet quarterly financial results (computed based on Total Revenue)

Domestic EBITDA Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12

Kingfisher Airlines 11.2% 9.3% 7.4% -5.6% 3.0% -15.7%

Jet Airways 11.1% 8.1% 16.4% -5.7% -0.4% -18.2%

Spicejet 10.3% 2.5% 14.5% -9.2% -6.7% -29.5%

Domestic EBITDAR Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12

Kingfisher Airlines 24.4% 24.7% 21.6% 9.2% 15.4% -0.8%

Jet Airways 18.9% 16.2% 23.1% 2.5% 6.7% -9.2%

Spicejet 23.5% 18.9% 27.1% 6.9% 7.2% -11.7%

Domestic


Market Performance – International


International Operating Environment

Kingfisher has deployed capacity on 8 out ofthe10 largest international routes from India

Market Size based on PAX-IS plus data for Apr 10-Mar 11.PPDEW = Pax per day each waySource : DGCA, PAXIS, 9W investor presentation

Mar

ket S

ize

(PPD

EW)

Indicates Kingfisher presence

• The total international traffic to and from India has

shown a CAGR of 13% between FY’06-FY’11

• Indian carriers currently account for ~35% of

international routes ASKMs from India

• Other industry players have grown the international

business and margins significantly- 9W revenue

increased by 5 times and EBITDAR margin by 15

percentage points between FY’07 and FY’11

• oneworld has set the growth path for KFA into key

international markets with enhanced connectivity and

traffic sources from worlds largest airlines – British

Airways, Qantas, Cathay Pacific, American Airlines,

etc.

• KFA has already exceeded fair share of the local O&D

markets in 11 out of 14 routes it operates vs. its

capacity share

1,217

824 794748

701 696 676 665582 550

0

200

400

600

800

1,000

1,200

1,400

Top 10 International Markets fromIndia

International


98

322

610 648

772 792 780

1,316

1,425 1,408 1,428 1,410

-

200

400

600

800

1,000

1,200

1,400

1,600

Q2 Q3 Q4FY09 Q1 Q2 Q3 Q4FY10 Q1 Q2 Q3 Q4FY11 Q1

ASK

Ms

(mn)

…And ramped up capacity in a calibrated manner

Launch of wide body A330operations to London

Additional utilization of A320 capacitywith international operations to BKK,DXB, CMB & DAC

Addition of A330 capacity toHKG & SIN

Capacity DeployedAddition of A330 capacity to LHR &A320 capacity to BKK,DXB & KTM

Withdrawal of BLR-LHR-BLR operations

Source: DGCA

International


The growing acceptance of the KF product has led toa significant growth in business …

Kingfisher Q1 Q2 Q3 Q4FY10 Q1 Q2 Q3 Q4FY11 Q1No of flights 831 1,192 1,288 1,268 2,229 2,472 2,487 2,438 2,467

Source: DGCA, Jet Airways published financialsJet Airways Pax Revenue = RPKM * RRPKM

International

1.041.34

1.671.91 1.96 1.97

2.37

2.36 2.492.05 2.14 2.33 2.31 2.21 2.33 2.43

2.27 2.35

-0.501.001.502.002.503.00

Q1 Q2 Q3 Q4 FY10 Q1 Q2 Q3 Q4 FY11 Q1

Passenger RASK

KF Jet Airways

60%69% 71% 72%

76% 74%78% 78% 79%

69% 71% 72% 72%

74% 73% 71% 73% 75%

30%

40%

50%

60%

70%

80%

90%

Q1 Q2 Q3 Q4FY10 Q1 Q2 Q3 Q4FY11 Q1

Load Factor

KF LF% Indian Carriers LF% excluding KF


The movement relative to peers has also been positive

Source: Estimated from Jet Airways published financials

KFA (Rs.) FY09 FY10 FY11 FY11 FY12Q1 Q2 Q3 Q4 Q1

EBITDARMargin -301% -37% 9% 4% 5% 15% 10% 5%

EBITDAMargin -444% -79% -9% -16% -15% -0.8% -6% -9%

Pax RASK 1.09 1.51 2.17 1.96 1.97 2.37 2.36 2.49

Non-FuelEBITDACASK

4.57 2.26 1.62 1.62 1.63 1.63 1.60 1.67

Non-FuelEBITDARCASK

3.02 1.50 1.16 1.14 1.13 1.19 1.17 1.22

Jet Airways(Rs. ) FY09 FY10 FY11 FY11 FY12

Q1 Q2 Q3 Q4 Q1EBITDARMargin 7% 24% 23% 23% 26% 26% 16% 11%

EBITDAMargin 4% 18% 17% 17% 20% 20% 11% 6%

Pax RASK 2.24 2.21 2.31 2.21 2.33 2.43 2.27 2.35Non-FuelEBITDACASK

1.45 1.61 1.57 1.51 1.59 1.58 1.57 1.60

Non-FuelEBITDARCASK

1.36 1.41 1.38 1.33 1.39 1.39 1.40 1.43

All Figures in INR International

0.24

0.67

1.341.21 1.20

1.46

1.48 1.491.541.37

1.48 1.46 1.46 1.53

1.45 1.47

-0.200.400.600.801.001.201.401.601.802.002.20

FY09 FY10 FY11 Q1 Q2 Q3 Q4 Q1FY12

Pax RASK/ Non- Fuel EBITDA CASK

KF Jet Airways

0.36

1.01

1.871.71 1.73

2.00 2.02 2.04

1.65 1.57

1.68 1.66 1.68 1.751.63 1.64

-0.200.400.600.801.001.201.401.601.802.002.20

FY09 FY10 FY11 Q1 Q2 Q3 Q4 Q1FY12

Pax RASK/ Non-Fuel EBITDAR CASK

KF Jet AirwaysFY11 FY11


…and an improving operating performance

1.09

1.82

2.622.41 2.42

2.83 2.81

-

0.50

1.00

1.50

2.00

2.50

3.00


INR

Total RASK

5.93

3.262.85 2.79 2.79 2.85 2.97

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00


INR

EBITDA CASK

(451)(430)

(130)

(51)(53)

(3) (23)

(500)

(450)

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

-


INR

in c

rs

EBITDA

International


KFA Debt : Post Debt Recast

Particulars

(in Rs. Cr)

Debtbeforerecast

Conversion of debt Additional LoanDebt post

recastDebt as of

31-Mar-2011to CCPS to CRPS toOCDS to WCTL FITL RTL

WorkingCapital 590.50 (297.40) 293.10 293.61

Term Loan 4,263.49 (750.10) (553.10) 297.40 248.42 768.30 4,274.41 4,489.23

PDP Loan 166.44 166.44 169.27

Promoterloan 656.30 (648.00) 8.30 38.00

Intercorporatedeposit (ICD)

1,137.32 (709.32) 428.00 310.41

sub total 6,814.05 (1,398.10) (553.10) (709.32) - 248.42 768.30 5,170.25 5,300.53

Other shortterm loan 75.20 75.20 301.65

HirePurchase 86.15 86.15 71.54

Financelease 675.73 675.73 674.04

Grand total 7,651.12 (1,398.10) (553.10) (709.32) - 248.42 768.30 6,007.33 6,347.76

Working Capital represents sanctioned fund based limits

As of 31st March 2011, Promoter & Bank debt which were converted to Compulsorily ConvertiblePreference Shares, pursuant to the Debt Recast were further converted into equity at INR 64.48 whichwas higher than the prevailing market price of INR 39.90


Agenda

• Business Update

– Domestic

– International

• Go Forward Plan



Going forward, the top three priorities for Kingfisher Airlinesare..

1. Interest Reduction

a) Debt reduction with assistance from banks, UB Group and others

b) Reduction in interest cost by converting some Rupee loans into foreign currency loans

c) Fresh equity infusion

2. Operational Restructuring

a) Changes to business model – seat distribution between full service and “no-frills” model

b) Reconfiguration of aircraft to add more seats

c) Reduction in operating cost through discounts on input costs

d) Rationalizing route network

e) Investment in product and brand

3. Manage Growth

a) Streamline fleet order with Airbus

b) Kingfisher plans to consolidate the operation and no new PDPs to be incurred till FY13

c) oneworld alliance participation


1Rs. 1,000 Cr - Recover MR money to Pay DebtBefore After Change

Interest Rate 13.5% 13.5% -ptsPrincipal 1,000 -Interest Cost 135 - -135CrSBLC Commission Cost onRs. 1,125 Cr - 11 11 Cr

2Rs. 450 Cr repayment of loan (‘90 Cr for KF House', ‘180 Cr for Sale and LeaseBack of aircrafts', ‘90 Cr for PDP return on A340', ‘90 Cr for change in BG Margin')

Before After ChangeInterest Rate 13.5% 13.5% -ptsPrincipal 450 -Interest Cost 61 - -61 Cr

3Convert Rs. 1,200 Cr of Rupee loan to foreign currency loan - 13.5% to 8%interest rate

Before After ChangeInterest Rate 13.5% 8.0% -5.5ptsPrincipal 1,200 1,200Interest Cost 162 96 -66 Cr

Impact of Bank Contribution per year 251 Cr

1 ST Loans - Conversion to Equity*

Before After Change

Interest Rate 12.0% 12.0% - pts

Principal 650 200

Interest Cost 78 24 -54 Cr

2 ICDs - Conversion to Equity*

Before After Change

Interest Rate 15.0% 15.0% - pts

Principal 217 -

Interest Cost 33 - -33 Cr

Impact of Promoter Contribution per year 87 Cr

Total Interest Cost reduction per year 394 Cr

Bank Contribution Promoter Contribution

Interest Reduction Proposals

* Conversion/subscription to equity shares to be simultaneous with the undertaking of a rights issue or otherraising of capital, and subject to not triggering an open offer under the Takeover Code** The holders of the OCDs are persons acting in concert with the Promoters for the purposes of issue andconversion of the OCDs

1 OCDs - Conversion to Equity* (Persons Acting in Concert**)

Before After Change

Interest Rate 8.0% - -8.0 pts

Principal 709 -

Interest Cost 57 - -57 Cr

Persons Acting in Concert**

Impact of Persons Acting in Concert per year 57 Cr


7,6516,521

3,722

1,643513 675

1,000

450674

Debt beforerecast

Recast benefit Fuel/AOGimpact

Debt -30-Jun-11

Group -debt to equity

MRconversion

Other debtredn

Finance tooperating

lease*

Potential debt

Proposals to reduce the debt

All figures in Rs. Cr

• Additionally, in discussions with banks for substituting 1,200 Cr of term loans with foreign currencyloans, which is expected to lower the interest cost by 6%

* Finance to operating lease conversion on 10 ATRs, 2 A320s and 1 ACJ to reduce debt byanother 674 Cr


Summary of Operational Restructuring Benefits1Reconfiguration & Business Model Change

Impact to seat reconfiguration and businessmodel change(1) (2) (3) 1,395 Cr

2Discounts (Fuel, Airport & GH, E&M, S&D, Catering)

Net Impact (@4% of current rates) 286 Cr

3Lease Rentals Reduction

Net Impact (10% of current) 115 Cr

Total Operational Improvements per year 1,796 Cr

Notes:

1) Aircraft reconfiguration to reduce the number of sub-fleets from nine (9) to five (5) across A319 / 320 / 321 / 332 aircraft types. The number of

seats in the front cabin will be reduced and more economy seats will be added

2) The domestic ATVs are estimated to increase by Rs. 600 due to concerted industry efforts to pass on the fuel increases, and absorb adverse

currency movement

In support of 1) and 2) the industry is currently forced to exercise a high level of capacity discipline

3) Business model change to Kingfisher Class offering is estimated to provide another Rs. 500 ATV upside on 60% of the domestic capacity that is

currently Kingfisher Red


Summary of projected P&L improvement in FY13

1) Interest Reduction Proposals

a) Impact of lower bank debt and interest rate 251 Cr

b) Impact of conversion of OCDs held by PACs* and Short term loans by Promoters 143 Cr

2) Operational Improvements

a) Reconfiguration of aircraft and related yield improvements 1,395 Cr

b) Various discounts available as a result of being current with creditors 286 Cr

c) Reduction in aircraft lease rentals 115 Cr

Estimated System P& L Improvement 2,190 Cr

EBITDAR margin estimated in FY13 with the above benefit realized* 24%

EBITDA margin estimated in FY13 15%

Estimated PBT in FY13 8%

Note: The crude is assumed at $110/bbl. Kingfisher is also exploring direct import of fuel which will lower fuel cost by Rs. 350 Cr per year further

improving the PBT margin to 11%

* Persons Acting in Concert


• ATR Operations

– The aviation market in India is growing at approx. 20% p.a.

– Tier II & III cities situated within 500 km of metros growing at a much faster clip, per AAI data

– 36 out of 96 operational Indian airports can handle A320/B737 class equipment

– The turboprops form 15% of KFA domestic capacity; EBITDAR margins are 8% higher than the A320

• Loyalty Program

– The size of the loyalty program market in India is estimated to be USD 1 billion and growing

– Co-branded credit cards have reported 40 – 50% of spend on airlines

– King Club has a membership base of approx. 1.8 million; growing at 25% p.a.

• MRO Operations

– The size of the global MRO market is estimated at USD 60 billion; Indian MRO market is estimated at USD 0.7 billion

growing at approx. 20% p.a.

– Airbus predicts India will need over 1000 aircraft over the next 20 years

– KFA has 1,500 trained AMEs, technicians, and staff doing in-house maintenance; captive customer with approx. 20%

market share in India

Opportunity to unlock further value through spin-offs


Agenda

• Business Update

– Domestic

– International

• Go Forward Plan



Overall company performance highlights: FY 2011

• Total revenue of Rs. 6,496 Cr (+23% over FY10)

– Operating revenue growth of +25% over FY10

• EBITDA profit of Rs. 140 Cr vs. loss of Rs. 690 Cr in FY10 (+830 Cr over FY10)

– EBITDA margin improved from -13.1% to +2.2%

– EBITDAR margin improved from +7.7% to +17.3%

• Total RASK improved to Rs. 4.02 from Rs. 3.56 in FY10 (+13%)

– Pax RASK growth of +9% over FY10 (Rs. 3.48 from Rs. 3.18)

• CASK (EBITDA) reduced to Rs. 3.93 from Rs. 4.03 in FY10 (-2%)

– Ex-fuel EBITDA CASK reduced by 10% over FY10 (Rs 2.52 from Rs 2.81)


Domestic operations performance highlights: FY 2011

• Operating Revenue of Rs. 4,899 Cr (+8% over FY10)

– 4% increase in passenger revenue despite 11% reduction in capacity (seats offered)

• EBITDA profit of Rs. 271 Cr vs. loss of Rs. 260 Cr in FY10 (+531 Cr over FY10)

– EBITDA margin improved from -5.5% to +5.4%

– EBITDAR margin improved from 12.8% to 19.8% in FY11


– Pax RASK growth of +16% over FY10 (Rs. 4.17 from Rs. 3.61)

– Load factor up 10 percentage points to 83%

• CASK (EBITDA) increased to Rs. 4.50 from Rs. 4.22 in FY10 (+7%)

– Ex-fuel EBITDA CASK increased by 1.8% over FY10 (Rs 3.00 from Rs 2.95)

– Excess costs of Rs 220 Cr borne on account of unplanned grounding of aircraft


International operations performance highlights: FY 2011

• Operating revenue of Rs. 1,460 Cr

– International passenger revenue at 22% of total system passenger revenue

– Routes maturing in line with expectation

• EBITDA loss of Rs 130 Cr vs. loss of Rs. 430 Cr in FY10 (+300 Cr over FY10)

– EBITDAR margin improved to 8.8% vs. loss of -36.6% in FY10


– Pax RASK improved to Rs. 2.2 from Rs. 1.5

– Load factor up 9 percentage points to 77%; ATV improved by 15% over same period last year

• CASK (EBITDA) reduced to Rs. 2.85 from Rs. 3.26 in FY10 (-13%)

– Ex-fuel EBITDA CASK reduced by 28% over FY10 (Rs 1.62 from Rs 2.26)


Appendix


Company Operating Parameters – FY 2011

ParametersApr'10 – Mar'11 Apr'09 – Mar'10 Better/ (Worse)

%(FY11) (FY10)

No of Departures 127,866 137,931 (7%)

ASKMs (Million) 16,166 14,801 9%

RPKMs (Million) 13,101 10,625 23%

Passenger LF% 81% 72% 9 points

Block Hours 229,911 230,622 0%

Revenue Passengers (Million) 12.0 11.1 9%

Revenue per ASKM (INR) 4.02 3.56 13%

Cost per ASKM (INR) 3.93 4.03 2%

Average Gross Revenue per passenger in INR 4,666 4,258 10%

Period ended Fleet Size 66 67 (2%)

Note: (1) Cost per ASKM is calculated at EBITDA cost level


Company P&L – FY 2011

Rs Crores Apr'10 – Mar'11(FY11)

Apr'09 – Mar'10(FY10) Variance (%)

INCOMEOperating Revenue 6,360 5,090 25%Non Operating Revenues 136 181 -25%Total Revenues 6,496 5,271 23%

EXPENDITUREEmployee Remuneration & Benefits 676 689 -2%Aircraft Fuel Expenses 2,274 1,803 26%Other Operating Expenses 2,421 2,376 2%

EBITDAR 1,124 404 179%

Aircraft Lease Rentals 984 1,094 -10%Total Operating expenditure 6,355 5,961 7%EBITDA 140 (690)

Depreciation 241 217 11%Interest and finance charges 1,313 1,103 19%Total Expenditure 7,909 7,281 9%

Loss before exceptional items and Tax (1,414) (2,010) 30%

Exceptional Items 91 358 -74%Foreign exchange translation difference 16 50 -68%

Provision for taxation (493) (771) 36%

PROFIT / (LOSS) AFTER TAXATION (1,027) (1,647) 38%


Company Balance Sheet : FY 2011

Rs. Crores Apr'10 – Mar'11 Apr'09 – Mar'10(FY11) (FY10)

Shareholders’ Funds:Capital 1,050.88 362.91Reserves and Surplus 1,346.40 87.70

Loan Funds 7,057.08 7,922.60

Total 9,454.36 8,373.21

Fixed Assets 2,245.23 2,535.12

Investments 0.05 0.05

Foreign Currency Monetary Item TranslationDifference Account 27.98

Deferred Tax Asset 2,927.78 2,434.37

Current Assets, Loans and Advances 2,973.83 2,457.12

Less: Current Liabilities and Provisions 4,166.85 3,548.13

Initial cost on Leased Aircrafts 125.84 145.64

Profit and Loss Account 5,348.47 4,321.08

Total 9,454.36 8,373.21


Domestic Operating Parameters – FY 2011

ParametersApr'10 – Mar'11 Apr'09 – Mar'10 Better/ (Worse)

%(FY11) (FY10)

No of Departures 118,240 133,352 (11%)

ASKMs (Million) 10,588 11,810 (10%)

RPKMs (Million) 8,819 8,586 3%


Block Hours 187,581 210,262 (11%)


Revenue per ASKM in INR 4.76 4.00 19%

Cost per ASKM in INR 4.50 4.22 (7%)

Average Gross Revenue per passenger in INR 4085 4046 1%


(2) *AOG refers to Aircraft on Ground

• Excess costs of Rs. 220 cr incurred on account of aircrafts on ground (AOG) in FY 2011• Cost per ASKM adjusted to AOG* would be Rs 4.29


Domestic P&L – FY 2011


Apr'09 – Mar'10(FY10)

Better/ (Worse)%

INCOME

Operating Revenue 4,899 4,544 8%

Non Operating Revenues 136 181 (25%)

Total Revenues 5,035 4,725 7%

EXPENDITURE

Employee Remuneration & Benefits 581 612 5%

Aircraft Fuel Expenses 1,588 1,505 (6%)

Other Operating Expenses 1,870 2,005 7%

EBITDAR 996 604 65%

Aircraft Lease Rentals 726 864 16%

Total Operating expenditure 4,765 4,985 4%

EBITDA 271 (260) 204%


International Operating Parameters – FY 2011

ParametersApr'10 – Mar'11 Apr'09 – Mar'10

Better/ (Worse)%

(FY11) (FY10)

No of Departures 9,626 4,579 110%

ASKMs (Million) 5,578 2,991 86%

RPKMs (Million) 4,282 2,039 110%


Block Hours 42,330 20,360 108%


Total Revenue per ASKM in INR 2.62 1.81 43%

Cost per ASKM in INR 2.85 3.26 13%

Average Gross Revenue per passenger in INR 9,704 8,416 15%



International P&L – FY 2011


Apr'09 – Mar'10(FY10)

Better/ (Worse)%

INCOMEOperating Revenue 1,460 546 168%

Non Operating Revenues - - -

Total Revenues 1,460 546 168%

EXPENDITURE

Employee Remuneration & Benefits 95 77 (23%)

Aircraft Fuel Expenses 686 298 (130%)

Other Operating Expenses 551 370 (49%)

EBITDAR 128 (200) 164%

Aircraft Lease Rentals 258 230 (12%)

Total Operating expenditure 1,591 976 (63%)

EBITDA (130) (430) 70%

Documents

Investor presentation october 2011