Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — FY2011 Earnings Presentation
31 slides from Capital A Berhad's earnings presentation, 2012
Slide 1: AirAsia Berhad Analyst Presentation - 4Q2011 and FYE 2011
AirAsia Berhad Analyst Presentation - 4Q2011 and FYE 2011 -
Slide 2: Disclaimer
Disclaimer Information contained in our presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation
Slide 3: 2011 Highlights
2011 Highlights
Slide 4: 2011 Results – Key Snapshot
2011 Results – Key Snapshot Disciplined Cost Management excluding fuel Malaysia - CASK, ex-fuel (sen) down 13% from 6.86 to 5.99 y-o-y Thailand - CASK, ex-fuel (THB) up 1% from 0.81 to 0.82 y-o-y Indonesia - CASK, ex-fuel (IDR) up 1% from 211.59 to 212.52 Revenue growth in all three operations Malay
Slide 5: 4Q11 Results – Key Snapshot
4Q11 Results – Key Snapshot Disciplined Cost Management excluding fuel Malaysia - CASK, ex-fuel (sen) down 34% from 6.82 to 4.53 y-o-y Thailand - CASK, ex-fuel (THB) up 5% from 0.77 to 0.81 y-o-y Indonesia - CASK, ex-fuel (IDR) down 19% from 262.30 to 211.97 Revenue growth in all three operations Ma
Slide 6: Key points – Setting the stage for 2012
Key points – Setting the stage for 2012 Associates turned around and recording profit plus strong growth - Amount due from associate reduced to RM 230 million Proposed IPO - Future aircraft on balance sheet - Own balance for future growth 2 sources of ancillary income - Core ancillary income (i.e. B
Slide 7: Joint Ventures Update and growth upside
Joint Ventures Update and growth upside Joint ventures Details AirAsia Philippines Received AOC early February 2012 Target launch in March 2012 To operate out of Clark Focusing on the regional travel and riding on AirAsia Group extensive network AirAsia Japan Received AOC early February 2012 Target
Slide 8: Fleet Strategy
Fleet Strategy Fleet rollout next 15 years 30 23 24 24 24 25 21 19 19 19 20 No of aircraft 20 20 18 15 14 15 13 9 10 5 0 2022 2013 2016 2017 2018 2019 2020 2023 2026 2015 2021 2024 2025 2012 2014 Aircraft delivered in 4Q11 - 2 aircraft on Sale and Leaseback - 1 for IAA & 1 for TAA - 2 aircraft on Co
Slide 9: Key success story – Efficient fleet management
Key success story – Efficient fleet management Airbus Delivery Net gearing 120 5.00 New Capacity/Capex Capacity/Capex vs Net 100 4.00 Gearing AirAsia has seen aggressive capex 80 3.00 requirements for aircraft acquisition to support high growth for the Group. Airbus Delivery Despite high capex, gear
Slide 10: 4Q11 – Net Gearing
4Q11 – Net Gearing 7,000 Net Gearing & Net Debt 3.50 Net Debt Net Gearing 6,800 2.60 2.62 2.25 2.27 6,600 2.02 1.75 1.57 1.48 1.50 1.43 6,400 6,200 6,000 5,800 5,600 5,400 5,200 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 Gearing down to 1.43 times from 1.50 q-o-q Ac
Slide 11: Hedging updates
Hedging updates Fuel hedged up to 27% for 1H12 :- :- Jet Kero @US$119.6/bbl Brent @US104.95/bbl Foreign currency hedged up to 67% with a weighted average of USD/RM3.2299 (based on loans pertaining to aircraft being deployed to Malaysia) Interest rate expense fully hedged (12 years tenure) for 2012 r
Slide 12: Key success story – Robust model
Key success story – Robust model 600 500 400 (RM'mil) 300 200 100 - Increase in fuel Increase in ticket Increase in ancillary Fuel surcharge Reduction in cost expense sales income (ex-fuel) Ability to absorb hike in fuel prices via: o Ticket fares o Ancillary revenues o Fuel surcharge, which was imp
Slide 13: Key success story – Strong financials despite high fuel prices
Key success story – Strong financials despite high fuel prices Average fuel price (US$ / Barrel) Operating Profit (RM'mil) 140 1,400 Average fuel price vs Operating profit Average fuel price (US$ / Operating Profit (RM'mil) 120 1,200 CAGR: 15% Despite rise in average fuel 100 1,000 price, operating
Slide 14: Key success story – Strong financials despite high fuel prices
Key success story – Strong financials despite high fuel prices Average fuel price (US$ / Barrel) Net gearing 140 3.00 CAGR: 36% 120 2.50 Average fuel price vs Net Gearing Average fuel price (US$ / Barrel) 100 2.00 Gearing levels decreasing depicts healthy cash position via strong Net gearing 80 reve
Slide 15: Ancillary Income – Strong upside
Ancillary Income – Strong upside 4Q11 v 4Q10 60 52 4Q11 Ancillary Income 49 47 50 40 38 In MAA, ancillary income per pax reduce by 19% 40 to RM40 per pax y-o-y due to reclassification of 27 30 AirAsiaGo & Cargo commissions 20 10 Stripping out AirAsia Go & Cargo commission 0 from 2010, below is like
Slide 16: Slide 16
Slide 17: 2011 – Financial Results - Malaysia
2011 – Financial Results - Malaysia RM’000 Financial performance 2011 2010 Change Revenue 4,473,818 3,948,095 13% EBITDAR 1,849,396 1,652,637 12% Operating Profit 1,198,696 1,066,961 12% Core net income 880,784 749,319 18% Profit after tax 564,147 1,061,411 -47% EBITDAR margin 41% 42% -1 ppt Operati
Slide 18: 2011 – CASK - Malaysia
2011 – CASK - Malaysia Cost / ASK (US cents 2011 2010 Staff Costs (0.60) (0.48) Depreciation (0.72) (0.70) Aircraft Fuel Expense (2.15) (1.62) Aircraft Operating lease expense (0.10) (0.09) Maintenance, Overhaul (0.11) (0.12) User Charges and other related expense (0.46) (0.51) Travel and tour opera
Slide 19: 2011 – Financial Results - Thailand
2011 – Financial Results - Thailand THB’000 Financial performance 2011 2010 Change Revenue 15,873,810 11,979,571 33% EBITDAR 4,742,569 4,170,597 14% Operating Profit 1,943,328 1,857,019 5% Profit after tax 2,032,755 2,011,037 1% EBITDAR margin 30% 35% -5 ppt Operating profit margin (EBIT) 12% 16% -4
Slide 20: 2011 – CASK - Thailand
2011 – CASK- CASK- Thailand Cost / ASK (US cents) 2011 2010 Staff Costs (0.52) (0.49) Depreciation (0.03) (0.05) Aircraft Fuel Expense (2.27) (1.71) Aircraft Operating lease expense (0.97) (0.95) Maintenance, Overhaul (0.39) (0.37) User Charges and other related expense (0.71) (0.73) Travel and tour
Slide 21: 2011 – Financial Results - Indonesia
2011 – Financial Results -Indonesia IDR’ million Financial performance 2011 2010 Change Revenue 3,705,295 2,756,219 34% EBITDAR 812,147 821,408 -1% Operating Profit 149,654 312,616 -52% Profit after tax 62,089 474,409 -87% EBITDAR margin 22% 30% -8 ppt Operating profit margin (EBIT) 4% 11% -7 ppt Op
Slide 22: 2011 – CASK - Indonesia
2011 – CASK - Indonesia Cost / ASK (US cents) 2011 2010 Staff Costs (0.51) (0.49) Depreciation (0.05) (0.03) Aircraft Fuel Expense (2.25) (1.73) Aircraft Operating lease expense (0.83) (0.83) Maintenance, Overhaul (0.43) (0.46) User Charges and other related expense (0.47) (0.51) Travel and tour ope
Slide 23: 4Q11 Financials and Operational Statistics
4Q11 Financials and Operational Statistics
Slide 24: 4Q11 – Financial Results - Malaysia
4Q11 – Financial Results - Malaysia RM’000 Financial performance 4Q11 4Q10 Change Revenue 1,272,722 1,164,358 9% EBITDAR 662,561 590,691 12% Operating Profit 490,781 432,607 13% Core net income 410,266 346,821 18% Profit after tax 135,662 311,082 -56% EBITDAR margin 52% 51% -2 ppt Operating profit m
Slide 25: 4Q11 – CASK - Malaysia
4Q11 – CASK - Malaysia Cost / ASK (US cents 4Q11 4Q10 Staff Costs (0.60) (0.47) Depreciation (0.67) (0.76) Aircraft Fuel Expense (2.23) (1.45) Aircraft Operating lease expense (0.14) (0.06) Maintenance, Overhaul (0.13) (0.20) User Charges and other related expense (0.41) (0.57) Travel and tour opera
Slide 26: 4Q11 – Financial Results - Thailand
4Q11 – Financial Results - Thailand THB’000 Financial performance 4Q11 4Q10 Change Revenue 4,308,642 3,504,720 23% EBITDAR 1,327,149 1,509,696 -12% Operating Profit 587,265 885,228 -34% Profit after tax 619,435 944,519 -34% EBITDAR margin 31% 43% -12 ppt Operating profit margin (EBIT) 14% 25% -11 pp
Slide 27: 4Q11 – CASK - Thailand
4Q11 – CASK - Thailand Cost / ASK (US cents) 4Q11 4Q10 Staff Costs (0.52) (0.53) Depreciation (0.02) (0.03) Aircraft Fuel Expense (2.30) (1.63) Aircraft Operating lease expense (0.95) (0.95) Maintenance, Overhaul (0.37) (0.30) User Charges and other related expense (0.68) (0.62) Travel and tour oper
Slide 28: 4Q11 – Financial Results - Indonesia
4Q11 – Financial Results - Indonesia IDR’ million Financial performance 4Q11 4Q10 Change Revenue 965,631 757,068 28% EBITDAR 245,141 171,095 43% Operating Profit 78,650 24,711 218% Profit after tax 15,787 166,934 -91% EBITDAR margin 25% 23% 2 ppt Operating profit margin (EBIT) 8% 3% 5 ppt Operationa
Slide 29: 4Q11 – CASK - Indonesia
4Q11 – CASK - Indonesia Cost / ASK (US cents) 4Q11 4Q10 Staff Costs (0.49) (0.53) Depreciation (0.10) (0.04) Aircraft Fuel Expense (2.26) (1.68) Aircraft Operating lease expense (0.76) (0.88) Maintenance, Overhaul (0.47) (1.02) User Charges and other related expense (0.48) (0.50) Travel and tour ope
Slide 30: Accounting for TAA and IAA
Accounting for TAA and IAA Overview AirAsia has investments of 48.9% in both TAA and IAA The aviation laws of Thailand and Indonesia require foreign shareholdings to not exceed 50% interest in these entities Based on the shareholders’ agreements for these entities, TAA is considered to be a jointly
Slide 31: Accounting for TAA and IAA (cont’)
Accounting for TAA and IAA (cont’) Equity Accounting The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of net assets of the investee. The profit or loss of the investor in