Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q1 2009 Earnings Presentation
28 slides from Capital A Berhad's earnings presentation, May 28, 2009
Slide 1: Leading The Competition
Leading The Competition First Quarter (Jan-Mar) 2009 Results 28 May 2009
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: Key Highlights for First Quarter
Key Highlights for First Quarter Disciplined growth – Group fleet size of 74 operational aircraft (end of March) – capacity growth of 19% and passenger growth of 21% YoY First quarter results exceeds expectations – core operating profit 166 million, 591% growth – core operating profit margin 23.2% L
Slide 4: The Best Kept Secret on the Balance Sheet
The Best Kept Secret on the Balance Sheet Period # Routes Served 2002 6 2003 11 2004 26 2005 52 2006 65 2007 75 2008 104 NOW 116 Latest Route Bali – Perth Upcoming Routes KL – Colombo Bangkok – Taipei 42 unique routes 3
Slide 5: Further Strengthening the Route Network - Singapore
Further Strengthening the Route Network - Singapore is Singapore is open for AirAsia after 7 years – routes from Malaysia and Indonesia is increasingly accessible AirAsia is the official low cost carrier for Singapore – currently 26 daily flights to Changi, will more than double within a year – more
Slide 6: World's Best Low Cost Carrier
World’ World ’s Best Low Cost Carrier AirAsia won the coveted “World’ World’s Best Low Cost Airline” Airline” by Skytrax – best on an overall measure – first Asian airlines to win this award Skytrax – independent consultants based in UK – votes cast by individuals all over the world – most accurate
Slide 7: AirAsia is the Market Leader at KLIA
AirAsia is the Market Leader at KLIA AirAsia Group Market Share at KLIA 44% 37% 30% 27% 20% 15% 12% 6% 2002 2003 2004 2005 2006 2007 2008 2009F Source: MAHB, Company data AirAsia Group has the most number of passengers at KLIA - Group’s market share in the first quarter was 44% - AirAsia Group is th
Slide 8: Result Commentary
fur Asia Result Commentary
Slide 9: Q1 2009: Revenue Growth Components
Q1 2009: Revenue Growth Components Year- Year-Over- Over- Year % Change 33% 26% 21% 7% 5% Revenue Volume Price Ancillary 8
Slide 10: LCC Thrives During Economic Hardship
LCC Thrives During Economic Hardship Passenger Carried 21% 3,147,609 Robust passenger growth continues 2,611,556 – 21% passenger growth – more people switching to AirAsia – prevalent down trading is opening new markets for AirAsia Q1-2008 Q1-2009 Load Factor -2.4 ppt Load factor holding up well 72.1
Slide 11: Driving Growth from Ancillary Income
Driving Growth from Ancillary Income Q1- Q1-2009 Q1- Q1-2008 ∆% Ancillary Income (RM million) 91.2 40.9 123% Passenger Spend (RM / pax) pax ) 29.0 15.7 85% % Revenue 12.8% 7.6% 5.1 ppt 29.0 100 30. 0 29. 0 RM million 28. 0 90 27. 0 91.2 26. 0 Spend / pax 23.1 25. 0 80 22.1 24. 0 23. 0 22. 0 70 73.8
Slide 12: Generating Revenue Through Innovation
Generating Revenue Through Innovation Launched in January 2009 – enables passenger to purchase baggage allocation of 15 kg, 20 kg or 25 kg First Quarter 2009 2008 * ∆ % Revenue 4.4% 2.2% 2.2 ppt * In 2008, only Excess Baggage was available Launched in February 2009 – enables passenger to choose seat
Slide 13: Capturing new Markets: Corporate Account
Capturing new Markets: Corporate Account No more business class. AirAsia is Companies are trading down the one for me – part of cost cutting exercise – make use of AirAsia’s attributes (routes, frequencies, reliability) Seats Sold to Corporate Clients 38,115 184% 26,058 172% 13,421 4,927 2006 2007 2
Slide 14: Cost / ASK – year on year Comparison
Cost / ASK – year on year Comparison Cost Breakdown Jan- Jan -Mar Jan Jan--Mar ∆ (%) Reason (US cents / ASK) 2009 2008 Staff 0.34 0.36 -6% Productivity gains Fuel and Oil 1.04 1.93 -46% Lower jet fuel price User & Station Charges 0.26 0.20 29% More international routes bias Maintenance and Overhaul
Slide 15: Superior Profits with Expanding Margins
Superior Profits with Expanding Margins PROFIT (RM million) PROFIT MARGINS EBITDAR EBITDAR 315 20.0 ppt 44.1% 144% 24.1% 129 Q1-2008 Q1-2009 Q1-2008 Q1-2009 Core Operating Profit Core Operating Profit 166 23.2% 591% 18.8 ppt 24 4.5% Q1-2008 Q2-2009 Q1-2008 Q2-2009 Net Profit Net Profit 26% 203 (1.7)
Slide 16: Associate Updates - its all about the Airbus
Associate Updates - its all about the Airbus
Slide 17: AirAsia Thai AirAsia Updates
AirAsia Thai AirAsia Updates Quarter Ended: 31 March Jan- Jan -Mar Jan- Jan -Mar ∆ (%) THB' 000 2009 2008 Revenue 2,390,943 2,099,606 14% EBITDAR 756,142 149,589 405% Profit After Tax 297,633 (122,660) Profit After Tax (RM'000) 30,528 (12,759) EBITDAR Margin 31.6% 7.1% 24.5 ppt Profit After Tax Marg
Slide 18: AirAsia Indonesia Updates
AirAsia Indonesia Updates Quarter Ended: 31 March Jan- Jan -Mar Jan- Jan -Mar ∆ (%) IDR million 2009 2008 Revenue 385,079 278,726 38% EBITDAR 70,021 (29,993) Profit After Tax (36,833) (64,517) Profit After Tax (RM'000) (11,475) (22,488) EBITDAR Margin 18% -11% 28.9 ppt Profit After Tax Margin -10% -
Slide 19: AirAsia X Updates
AirAsia X Updates Quarter Ended: 31 March Jan- Jan -Mar RM million 2009 Revenue 129 EBITDAR 45.7 Core Operating Profit 17.8 EBITDAR Margin 35.4% Core Operating Profit Margin 13.8% Profitable with strong cash flow – carried 146k passengers with 69% load factor – EBITDAR of RM46 million with 35% margi
Slide 20: AirAsia and AirAsia X Feed Each Other
AirAsia and AirAsia X Feed Each Other Final Destination of Australian Passengers on AAX Gold Coast Flights Bangkok 21% 80% of AAX passenger use AirAsia for Kuala Lumpur 19% connecting flight Phuket 16% Syiombiotic feeder relationship Bali 11% Air Travel Jan-Mar Apr-Jun Jul-Sep Oct-Dec Vientiane 8% D
Slide 21: Outlook
fur Asia Outlook
Slide 22: Demand Remains Robust
Demand Remains Robust % Total seats sold as of 27 May 73% 71% 72% 76% 2009 2008 Change in booking trend 46% 45% - people book way in advance - last minute travel has reduced 29% 23% Low cost airline is more 18% 17% defensive during the tough times as compared to full service carriers April May June
Slide 23: Summary
Summary Reaffirming Guidance for full year 2009 – passenger growth of 15%-20% – lower operating cost with stable yields Challenging market, but positive for LCC – LCC is the best suited airline to maneuver challenging economic times – more people switching to LCC as first choice of travel – passenge
Slide 24: Appendix
firffsia Appendix
Slide 25: Fleet Composition (31 March 2009)
Fleet Composition (31 March 2009) Number of Operational Aircraft March 2009 Malaysia 44 Thailand 17 Indonesia 13 Group Total 74 Aircraft Type # Airbus A320 59 # Boeing 737-300 15 Note: 3 Boeing 737-300 is awaiting to be sold off and is excluded from the fleet calculation 24
Slide 26: Financial Data – First Quarter
Financial Data – First Quarter Quarter Ended: 31 March Jan-Mar Jan-Mar ∆ (%) RM'000 2009 2008 Ticket Sales 622,930 494,382 26% Ancillary Income 91,248 40,939 123% Revenue 714,178 535,321 33% Non-recurring item gain/(loss) 48,528 0 n/a EBITDAR 314,840 129,192 144% Core Operating Profit 165,963 24,008
Slide 27: Operating Data – First Quarter
Operating Data – First Quarter Jan-Mar Jan-Mar Quarter Ended: 31 March ∆ (%) 2009 2008 Passengers Carried 3,147,609 2,611,556 21% ASK (million) 5,207 4,364 19% RPK (million) 3,487 2,970 17% Seat Load Factor 69.7% 72.1% -2.4 ppt Average Fare (RM) 198 189 5% Rev / ASK (sen) 13.72 12.27 12% Rev / ASK (
Slide 28: Operating Data – First Quarter
Operating Data – First Quarter Jan-Mar Jan-Mar Quarter Ended: 31 March ∆ (%) 2009 2008 Average fare (RM) 197.9 189.3 5% Ancillary Income / pax (RM) 29.0 15.7 85% Unit Revenue / pax (RM) 226.9 205.0 11% Fuel consumed ( barrels) 878,249 768,665 14% Unit fuel price ($/barrel) 61.6 109.7 -44% Average st