Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q4 2015 Earnings Presentation
16 slides from Capital A Berhad's earnings presentation, Feb 26, 2016
Slide 1: AirAsia Berhad 4Q15 Earnings Briefing
AIRASIA BERHAD 4Q15 EARNINGS BRIEFING 26 FEBRUARY 2016
Slide 2: Disclaimer
DISCLAIMER Information contained in our presentation is intended solely for your personal reference and is strictly confidential. 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 no
Slide 3: 4Q15 Key Highlights - Malaysia Record Earnings
4Q15 KEY HIGHLIGHTS MALAYSIA – RECORD EARNINGS • Revenue: RM2.17 bil (+47% YoY) due to 10% growth in passenger volume, 4% growth in unit passenger revenue and 14% growth in overall ancillary revenue • Load factor: 85% (+7ppts YoY) • Average fare: +4% YoY to RM177 • Ancillary Income Per Pax:
Slide 4: 4Q15 Key Highlights - Malaysia RASK & CASK
4Q15 KEY HIGHLIGHTS MALAYSIA – RASK & CASK RASK: 22.29 sen (+41% QoQ, +40% YoY) RASK ex-fuel surcharge (+59% YoY) 22.29 4Q14 4Q15 22.29 22.23 15.95 15.84 14.38 14.56 15.95 13.95 +41% +40% +59% 4Q14 1Q15 2Q15 3Q15 4Q15 Reported RASK RASK ex Fuel Surcharge CASK CASK – ex Fuel (sen) (sen) +4% 14.06 +27
Slide 5: 4Q15 Key Highlights - Associates
4Q15 KEY HIGHLIGHTS ASSOCIATES • Thailand – Revenue down 3% on the back of lower average fare due to drop in international passengers impacted by the explosion at the Ratchaprasong intersection and bad haze situation in Southern Thailand. Operating profit down 32%, profit after tax down 32% to THB54
Slide 6: AirAsia Group Consolidated Results of AAB and AOCs
4Q15 KEY HIGHLIGHTS AIRASIA GROUP – CONSOLIDATED RESULTS OF AAB AND AOCs • Included in the Company’s Bursa Announcement (Note 9) • Revenue: RM 3.38 billion • Group Operating Profit: RM 805.54 million RM 57% • Net Operating Profit: RM 675.90 million 3.38 bil 24% • Profit Before Tax: RM 332.44
Slide 7: 4Q15 Ancillary Revenue +14%
4Q15 ANCILLARY REVENUE +14% • Total ancillary revenue increased 14% YoY, pushing ancillary Others income per pax up by 4% to RM49 22% • Biggest contributors: RM Baggage Baggage (43% of total ancillary revenue) and Cargo (10% of total ancillary revenue) Connecting Fees 5% Assigned Seat 49 43% • Highe
Slide 8: Ancillary Revenue - Duty Free & Tune Money
ANCILLARY REVENUE - DUTY FREE & TUNE MONEY Billboards Duty Free Website Enhancement 4Q15 2016 • Revenue RM2.49m • Product development & expansion to be as good as (+23% QoQ) others (eg. SIA, Cebu Express, Korean Air etc) • Total SKU of 148 • Onboard: 200 • New revenue stream • Online: 500 – duty pai
Slide 9: Balance Sheet - Net Gearing
BALANCE SHEET - NET GEARING • Net gearing decreased by 23% to 2.29x due to (i) lower total debt (ii) increase in cash USD BORROWINGS REDUCED MYR USD USDMYR • In absolute USD terms, USD borrowings 14,000 6.0000 11,976 reduced by USD150mil or 6% QoQ due 12,000 10,100 10,723 10,521 10,909 5.5000 4.4475
Slide 10: Indonesia AirAsia - Turnaround Update
INDONESIA AIRASIA - TURNAROUND UPDATE REVENUE (Q4 2015 versus Q4 2014): • Operating profit below target at negative IDR42 billion despite 35% lower cost due to revenue missing targets on 20% fewer ASKs flown, average fare down by 3% and ancillary income per passenger down by 4%. • Entering high seas
Slide 11: Indonesia AirAsia - Turnaround Update: Forward Trend
INDONESIA AIRASIA - TURNAROUND UPDATE FORWARD TREND • On track to reach 77% load factor in 1Q16 • Aggressive pricing to drive international routes load factors • 2Q16 target to achieve 8ppt increase in load to 81% with increase in average fare forecasted, leading to an increase in core passenger RAS
Slide 12: Philippines' AirAsia - Turnaround Update
PHILIPPINES’ AIRASIA - TURNAROUND UPDATE REVENUE (Q4 2015 versus Q4 2014): • Total revenue increased 51% owing to a 47% increase ticket revenue due to: • Significant increase in load factor by 9ppt to 81%, as PAA’s turnaround has come in to effect and is demonstrating results in capturing demand • 3
Slide 13: Philippines' AirAsia - Turnaround Update: Forward Trend
PHILIPPINES’ AIRASIA - TURNAROUND UPDATE FORWARD TREND • Demand in 1Q16 is strong driven by domestic peak period • Forecast 89% load in 1Q16(+12ppt YoY) • Expected to post a profit or break even position for Q1 • Forecast 86% load (+6ppt) in 2Q16 89% Previous Year Forward Booking 81% 81% 69% 41% 30%
Slide 14: 2016 Group Priorities
2016 GROUP PRIORITIES 1 DIGITAL COMPANY • Build foundation for a digital company • Drive conversion & mobile adoption Leverage database & reinforce web/mobile channels 2 ONE STOP TO ASIA Target to be No. 1 carrier for travel within Asia-Pacific 14
Slide 15: 2016 Group Priorities
2016 GROUP PRIORITIES 3 BOOST ANCILLARY PER PAX • Target of RM50 per pax Fully roll out existing products & develop new ones CENTRALISE STANDARDISE 4 ONE ORGANISATION • Reduce duplication • Single SOP at AOC level & across all AOCs Centralise functions and ensure alignment • Best practice in between
Slide 16: Thank You
THANK YOU