Air Astana : Financial Statement First Quarter 2024

JOINT STOCK COMPANY AIR ASTANA

Condensed Consolidated Interim Financial Information for the three-monthperiod

ended 31 March 2024 (unaudited)

JOINT STOCK COMPANY AIR ASTANA

TABLE OF CONTENTS

	Page
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES
FOR THE PREPARATION AND APPROVAL OF THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL INFORMATION FOR THE THREE-MONTH PERIOD ENDED
31 MARCH 2024	3
CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2024:
Condensed consolidated interim statement of profit or loss (unaudited)	4
Condensed consolidated interim statement of other comprehensive income (unaudited)	5
Condensed consolidated interim statement of financial position (unaudited)	6
Condensed consolidated interim statement of changes in equity (unaudited)	7
Condensed consolidated interim statement of cash flows (unaudited)	8-9
Notes to the condensed consolidated interim financial information (unaudited)	10-35

CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2024 (UNAUDITED)

(in thousands of USD)

		Three-month			Three-month
		period ended			period ended
		31 March 2024			31 March 2023
	Notes	(unaudited)			(unaudited)
(Loss)/profit for the period		(11,583)	929
Other comprehensive income to be reclassified into
profit or loss in subsequent periods:
Cash flow hedges - effective portion of changes in fair			(1,304)
value	18	818
Corporate income tax related to cash flow hedges -			261
effective portion of changes in fair value		(164)
Realised net loss from cash flow hedging instruments	24	3,155	3070
Corporate income tax related to loss from hedging	24		(614)
instruments		(631)
Other comprehensive income for the period, net of					1,413
income tax		3,178
Total comprehensive (loss)/income for the period		(8,405)			2,342

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JOINT STOCK COMPANY AIR ASTANA

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024 (UNAUDITED)

(in thousands of USD)

		31 March 2024
ASSETS	Notes	(unaudited)		31 December 2023
Non-current assets
Property and equipment	10	859,844	853,320
Intangible assets		3,373	2,836
Prepayments for non-current assets	14	29,448	18,451
Guarantee deposits	12	31,294	33,302
Deferred tax assets	10	40,868	37,040
Trade and other receivables	16	1,249	1,343

Current assets		966,076			946,292
Inventories	13	74,466	67,548
Prepayments	14	25,282	24,825
Income tax prepaid		23,734	13,259
Trade and other receivables	15	31,505	23,525
Other taxes prepaid	16	12,317	10,247
Guarantee deposits	12	2,708	1,979
Cash and cash equivalents	17	369,463	274,006
Other financial assets	18	945	763
Total assets		540,420			416,152
	1,506,496			1,362,444
EQUITY AND LIABILITIES
Equity
Share capital	19	138,112	17,000
Functional currency transition reserve		(9,324)	(9,324)
Other reserves		153	-
Reserve on hedging instruments, net of tax		(13,114)	(16,292)
Retained earnings		210,392	221,975
Total equity		326,219			213,359
Non-current liabilities
Lease liabilities	24	544,253	543,896
Provision for aircraft maintenance	21	165,185	148,618
Employee benefits		858	623
Current liabilities		710,296			693,137
Loans	23	311	412
Lease liabilities	24	175,761	174,997
Deferred revenue	20	103,312	84,368
Provision for aircraft maintenance	21	104,903	105,170
Trade and other payables	22	85,694	91,001
Total liabilities		469,981			455,948
	1,180,277			1,149,085
Total equity and liabilities		1,506,496			1,362,444
Book value per common share (in USD)*
	0.906	12,383.706

*The number of ordinary shares as of 31 March 2024 and 31 December 2023 was 356,526,315 and 17,000 respectively. Disclosure of the book value per common share is not covered by IFRS and is disclosed upon the request and in accordance with the rules of KASE.

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JOINT STOCK COMPANY AIR ASTANA

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2024 (UNAUDITED)

(in thousands of USD)

			Functional
			currency		Reserve on
			translation		hedging	Retained		Other
Notes	Share capital		reserve		instruments	earnings		reserves		Total equity
At 1 January 2023	17,000	(9,324)	(25,398)		169,990	-	152,268
Profit for the period (unaudited)	-		-		-		929		-		929
Other comprehensive income: Realised loss on cash flow hedging				1,413					1,413
instruments and effective portion of changes in fair value of fuel
call options, net of tax (unaudited)	-	-				-	-
Total comprehensive income for the period (unaudited)	-		-		1,413		929		-		2,342
Dividends declared (unaudited)							(16,776)		-		(16,776)
At 31 March 2023 (unaudited)	17,000		(9,324)		(23,985)		154,143		-		137,834
At 1 January 2024	17,000	(9,324)	(16,292)		221,975	-	213,359
Loss for the period (unaudited)	-		-		-		(11,583)		-		(11,583)
Other comprehensive income: Realised loss on cash flow hedging
instruments and effective portion of changes in fair value of fuel
call options, net of tax (unaudited)	-	-	3,178		-	-	3,178
Total comprehensive income/(loss) for the period (unaudited)	-		-		3,178		(11,583)		-		(8,405)
Issue of shares	121,112	-	-		-	-	121,112
Issue costs	-	-	-		-	(1,343)	(1,343)
Equity settled share-based payments	-	-	-		-	1,496	1,496
At 31 March 2024 (unaudited)	138,112		(9,324)		(13,114)		210,392		153		326,219

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The notes on pages 10-35 form an integral part of this condensed consolidated interim financial information.

JOINT STOCK COMPANY AIR ASTANA

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (UNAUDITED)

(in thousands of USD)

		Three-month		Three-month
		period ended		period ended
		31 March 2024		31 March 2023
	Notes	(unaudited)		(unaudited)
OPERATING ACTIVITIES:			1,183
(Loss)/profit before tax		(14,541)
Adjustments for:
Depreciation and amortisation of property and equipment and			37,943
intangible assets	11	45,095
Gain on sale of property, equipment and inventory		(211)	(302)
Change in impairment allowance for prepayments, trade	12, 14,		(1,982)
receivables, guarantee deposits and cash and bank balances	15,17	(108)
Change in write-down of obsolete and slow-moving			(177)
inventories	13	(188)
Change in vacation accrual	22	1,046	349
Change in provision for aircraft maintenance	7, 21	23,258	21,631
Change in customer loyalty program provision	20	433	(133)
Foreign exchange loss, net		3,733	2,681
Finance income, excluding impairment		(4,756)	(2,856)
Finance costs, excluding impairment		13,638	10,813
Equity-settledshare-based payment	19	1,496		-
Operating cash flow before movements in working capital		68,895	69,150
Change in trade and other accounts receivables		(7,965)	(2,069)
Change in prepayments		(2,656)	(3,823)
Change in inventories		(6,555)	(10,608)
Change in trade and other payables and provision of aircraft		(14,035)	(13,682)
maintenance
Change in deferred revenue		18,511	23,939
Change in other financial assets		546		(995)
Cash generated from operations		56,741	61,912
Income tax paid		(11,333)	(11,876)
Interest received		4,744		2,617
Net cash generated from operating activities		50,152	52,653
INVESTING ACTIVITIES:
Purchase of property and equipment		(18,342)	(15,244)
Proceeds from disposal of property and equipment		334	1,169
Purchase of intangible assets		(741)	(588)
Bank and Guarantee deposits placed		(1,238)	(754)
Bank and Guarantee deposits withdrawn		502		2,815
Net cash used in investing activities		(19,485)		(12,602)

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The notes on pages 10-35 form an integral part of this condensed consolidated interim financial information.

JOINT STOCK COMPANY AIR ASTANA

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2024 (CONTINUED) (UNAUDITED) (in thousands of USD)

		Three-month		Three-month
		period ended		period ended
		31 March 2024		31 March 2023
	Notes	(unaudited)		(unaudited)
FINANCING ACTIVITIES:
Repayment of lease liabilities	24	(43,583)	(38,972)
Interest paid	24	(11,927)	(10,089)
Repayment of borrowings and additional financing from sale			(1,971)
and leaseback	23	(38,118)
Proceeds from borrowings	23	37,600	35,000
Proceeds from issuance	19	121,112		-
Net cash generated from/(used in) financing activities		65,084		(16,032)
NET INCREASE IN CASH AND BANK BALANCES		95,751	24,019
Effect of exchange rate changes on cash and bank balances			(790)
held in foreign currencies		(293)
Effects of movements in ECL on cash and bank balances		(1)	-
CASH AND BANK BALANCES, at the beginning of the	17		252,888
period	274,006
CASH AND BANK BALANCES, at the end of the period	17	369,463		276,117

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The notes on pages 10-35 form an integral part of this condensed consolidated interim financial information.

JOINT STOCK COMPANY AIR ASTANA

Notes to the condensed consolidated interim financial information for the three-month period ended 31 March 2024

1. NATURE OF ACTIVITIES

JSC Air Astana (the "Company") is a joint stock company as defined in the Civil Code of the Republic of Kazakhstan.

The Company was established as a closed joint stock company on 14 September 2001 by Resolution of the Government of the Republic of Kazakhstan #1118 dated 29 August 2001. Due to a change in legislation introduced in 2003, the Company was re-registered as a joint stock Group on 27 May 2005.

The Company has a subsidiary JSC "FlyArystan" (formerly JSC "Aviation Company "Air Kazakhstan") (hereinafter - the "Subsidiary") which was acquired in November 2019 by purchasing one hundred percent of the shares and voting interests. Together the Company and the Subsidiary are referred to as the "Group".

The operations of Subsidiary commenced in October 2023. From December 2023 to March 2024, JSC "FlyArystan" issued additionally 2,280,000 shares in favour of the Company. The total additional investment amounted to KZT 9,120,000 thousand (USD 19,907 thousand).

The Group's principal activity is the provision of scheduled domestic and international air services for passengers. Other business activities include freight and mail transportation.

As at 31 March 2024 and 31 December 2023, the Group operated 50 and 49 aircraft that are acquired under lease.

On 15 February 2024, the Company completed its Initial Public Offering ("IPO"), raising KZT

54,256,673 thousand (USD 121,112 thousand). The Company listed simultaneously on three exchanges: Kazakhstan Stock Exchange, Astana International Exchange, and London Stock Exchange. In addition to the primary offering, existing shareholders JSC "National Welfare Fund "Samruk-Kazyna", and BAE Systems Kazakhstan Limited both sold their shares (or GDRs representing shares), reducing their shareholdings to 41% and 16.95%, respectively. Other shareholders had less than 10% of shares post- IPO.

Regional geopolitical conflicts

Following the conflict between Russia and Ukraine at the end of February 2022, the Group (under both Air Astana and FlyArystan brands) suspended flights to and over Russia and Ukraine.

In 2021, the revenue shares of the Group on routes to Russia and Ukraine were at 8% and 2% respectively. The management believes that the impact of the conflict is limited, as the Group has reallocated vacant capacity from suspended routes to other destinations.

2. BASIS OF PREPARATION Statement of compliance

This condensed consolidated interim financial information has been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 December 2023. This condensed consolidated interim financial information should be read in conjunction with those financial statements. This condensed consolidated interim financial information does not include all the information required for full annual financial statements prepared in accordance with IFRS Standards as issued by the International Accounting Standards Board ("IFRS Standards").

Segmental Information

There are two main operating segments of the Group, full service brand Air Astana and low cost brand FlyArystan; these include information for the determination of performance evaluation and allocation of resources by the management. The Group management uses the operating profit calculated according to IFRS standards while evaluating the performance of the segments adjusted for the impact of inter-segments operations.

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