Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q2 2018 Earnings Presentation
19 slides from Capital A Berhad's earnings presentation, August 2018
Slide 1: AirAsia Group Berhad Analyst Presentation Second Quarter 2018 Financial Results
Slide 2: Legal Disclaimer
LEGAL 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
Slide 3: 2Q2018 Highlights: Financial Performance
2Q2018 HIGHLIGHTS COMMENDABLE PERFORMANCE DESPITE FUEL, CURRENCY & INDONESIA 1. Financial Performance Revenue (RM million) 2,624 2,378 +10% Net Operating Profit (RM million) 325 395 -18% Net Profit (RM million) Sills) 140 +125% Revenue up 10% YoY to RM2.62 billion, as a result of: = Passengers carri
Slide 4: 2Q2018 Highlights: Operating Statistics
2Q2018 HIGHLIGHTS COMMENDABLE PERFORMANCE DESPITE FUEL, CURRENCY & INDONESIA 2. Note: Operating Statistics ASK Growth (million) 15,962 14,202 +12% Passengers Carried 10,878,146 9,611,814 +13% Load Factor 86% 89% -3ppts RASK (sen) 14.83 15.35 -3% CASK (sen) 13.77 13.22 +4% CASK ex. fuel (sen) 8.05 8.
Slide 5: 2Q2018 Highlights: Monetising of Assets, Competition Weakening
2Q2018 HIGHLIGHTS COMMENDABLE PERFORMANCE 3. Monetising of assets + AAC- BBAM transaction of USD1.185 billion announced on 1 March 2018. As at 8 Aug 2018, received USD501.6mil (39 aircraft transferred, 45 more aircraft to transfer by Nov 2018) + Expedia - remaining 25% stake sold and announced on 14
Slide 6: 2Q2018 Highlights: Fleet Optimisation
2Q2018 HIGHLIGHTS FLEET OPTIMISATION 5. Aircraft utilisation across AirAsia Group increased by 2% to 13 hours a day in 1H18 vs 12.7 hours in 1H17 6. Group Fleet by 31 December 2018 Full Year Malaysia Thailand Indonesia Philippines India Japan Monee Jan 2018 196 Net Addition 28 Total 223 * 223 exclud
Slide 7: 2Q2018 Highlights: Gaining Traction
2Q2018 HIGHLIGHTS GAINING TRACTION 7. Digital Group Wide Traction & Projects All AOCs 1H2018 1H2017 Change Unique Users: Mobile App (million) 95 50 +89% Website (million) 184 162 +14% Mobile Device penetration: Flight search 58.8% 51.1% +15% Bookings 40.6% 31.7% +28% Check-in 8.6% 8.1% +6% BIG Loyal
Slide 8: 2Q2018 Highlights: Ancillary Growing Steadily
2Q2018 HIGHLIGHTS ANCILLARY GROWING STEADILY AT 19% OF THE TOTAL REVENUE 8. Ancillary Revenue (RM million) ATA.S +4% => Tune 2Q17 2Q18 Protect 9 + AirAsia Group Berhad’s") ancillary revenue increased 4% YoY from RM474.5 mil 23% in 2Q17 to RM492.6 mil in 2Q18 attributed from 13% increase in pax carri
Slide 9: Associates' Performance: AirAsia Thailand
ASSOCIATES’ PERFORMANCE HIGHLIGHTS AIRASIA THAILAND * Frequency increased on 5 routes originating from Bangkok (4) 2Q18 2Q17 ge and Chiang Mai (1) in 2Q18 Passengers Carried 5,310,361 4,694,374 +13% * Grew fleet to 59 in 2Q18 from 54 in 2Q17 ASK (million) 6,147 5,373 +14% + Net operating loss of THB
Slide 10: Associates' Performance: AirAsia India
ASSOCIATES’ PERFORMANCE HIGHLIGHTS AIRASIA INDIA Passengers Carried ASK (million) Load Factor (%) Average Fares (INR) Number of Flights Net Operating (Loss) (INR million) Revenue (INR million) 1,827,805 2,136 87 3,260 11,643 (516) 6,497 2Q17 1,005,341 1,184 90 3,214 6,222 (242) 3,488 Revenue up by 8
Slide 11: Strategy: Every Crisis Lies an Opportunity
STRATEGY EVERY CRISIS LIES AN OPPORTUNITY 1. Seizing opportunities Domestic Market Share 2Q2018 2Q2017 2Q2018 vs 2Q2017 Malaysia 57% 52% MAS -3% Malindo -3% Thailand 35% t 31% Nok Air -1% Thai Lion -3% Indonesia 2% @ 2% Lion -1% Garuda -3% Philippines 22% t 15% Cebu -7% PAL FLAT India 5% t 4% IndiGo
Slide 12: Strategy: Cost Reduction Measures
STRATEGY 2018 & BEYOND 2. Cost reduction measures + All AOCs & centralised procurement have achieved 46% of our cost savings target as of June 2018 * Headcount rationalisation - Non-airline operating workforce reduction by 5% from June 2018 to December 2019. Staff cost has reduced by 2% in 2Q2018 Yo
Slide 13: Strategy: Maximise Revenue, Ancillary Growth
STRATEGY 2018 & BEYOND 3. Maximise revenue + Full year load target of 85% + Fares revised upwards as of 1 June 2018 + Average fares for AirAsia Malaysia, Indonesia and Philippines are trending upwards for 2H2018 4. Ancillary revenue to grow with ASK + RedCargo - Target : RM200mil by December 2018 +
Slide 14: The New AirAsia Group: A Digital Airline
THE NEW AIRASIA GROUP A DIGITAL AIRLINE C Driving profits & collecting data ~) AIRLINE ee RIBY Oran ~ g CO Q g % Ww ™ > > C 12
Slide 15: Thank You & Appendix
Slide 16: Malaysia 2Q18 Income Statement & Operating Statistics
APPENDIX MALAYSIA 2Q18 INCOME STATEMENT & OPERATING STATISTICS Quarter Ended: 30 June Apr-Jun Apr-Jun Change RM’000 2018 2017 YoY IRevenue 1,750,998 1,544,520 13% lOperating expenses: Apr - Jun Apr - Jun Change |: Staff costs (267,312) | (275,322) | -3% 2018 2017 YoY |- Depreciation of PPE (98,420)
Slide 17: Indonesia 2Q18 Income Statement & Operating Statistics
APPENDIX INDONESIA 2Q18 INCOME STATEMENT & OPERATING STATISTICS Quarter Ended: 30 June Apr — Jun Apr-Jun Change IDR million 2018 2017 YoY Revenue 982,475 1,016,954 -3% Aprauun Aprauun change A . 2018 2017 YoY |Operating expenses: |- Staff costs (192,205) (181,318) 6% |- Depreciation (46,747) (40,444
Slide 18: Philippines 2018 Income Statement & Operating Statistics
APPENDIX PHILIPPINES 2018 INCOME STATEMENT & OPERATING STATISTICS Apr - Jun Change 2017 YoY Revenue 5,461,260 | 4,095,460 33% Apr - Jun Apr-Jun Change [Operating expenses: |uemear eincksse et) denne 2018 2017 YoY |- Staff costs (632,548) (459,687) 38% |- Depreciation of property, plant . 1,817,962 |
Slide 19: A Glimpse of 2H2018: Forward Bookings
A GLIMPSE OF 2H2018 FORWARD BOOKINGS SOE CieraH mLoad factor forecast Actual flown last year 89% 88% 88% 87% 88% 85% 86% 86% 83% 83% 82% 83% AirAsia Group Berhad Consolidated AOCs Average Base Fare (RM) MAA Forecast oe x ms 8 8 88% 87% 33% 88% 85% aay 88% 88% 79% 82% 81% 81% ee | L| LI] Jul-18 Aug-1