Capital A Berhad · MYX:CAPITALA

Capital A Berhad — AirAsia — Q4 2010 Earnings Presentation

24 slides from Capital A Berhad's earnings presentation, Feb 24, 2011

  1. Slide 1: Fourth Quarter 2010 Results

    Fourth Quarter 2010 Results 24 February 2011

  2. 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

  3. Slide 3: FY2010 Remarkable performance for AirAsia Group

    FY2010 Remarkable performance for AirAsia Group  Malaysia breaks billion ringgit net profit barrier ‐ Profit after tax of RM1.06 billion up 111% y‐o‐y ‐ Achieved billion ringgit net profit with average fuel price per barrel of US$92 in FY2010 as compared to US$70 in FY2009  Thailand’s performance

  4. Slide 4: FY2010 Financial Results - AirAsia Group

    FY2010 Financial Results - AirAsia Group Financial year ended MAA TAA IAA Total 31 December 2010 2010 2009 2010 2009 2010 2009 2010 2009 (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) Revenue 3,992,772 3,178,854 1,247,798 948,727 979,118 687,196 5,619,687 4,814,778 EBITDAR 1

  5. Slide 5: 4th Quarter: Great finish to the year

    4th Quarter Great finish to the year  Malaysia stellar performance ‐ Revenue of RM1.19 billion recording 33% y‐o‐y growth ‐ Profit after tax of RM316 million, up 835% y‐o‐y ‐ Passenger volume up 11% y‐o‐y, achieved 82% load factor  Thailand: Another strong performance ‐ Revenue of THB3.74 billion

  6. Slide 6: 4Q10 Financial Results - AirAsia Group

    4Q10 Financial Results - AirAsia Group Quarter Ended: MAA TAA IAA TOTAL 31 December 2010 4Q2010 4Q2009 4Q2010 4Q2009 4Q2010 4Q2009 4Q2010 4Q2009 (RM’000) (RM’000) (RM’000) (RM’000) (RM'000) (RM'000) (RM'000) (RM'000) Revenue 1,186,467 894,059 388,823 296,971 276,398 207,451 1,851,688 1,398,481 EBITD

  7. Slide 7: 4Q10 Operating Statistics - AirAsia Group

    4Q10 Operating Statistics - AirAsia Group Quarter Ended: MAA TAA IAA 31 December Change Change Change 2010 4Q2010 4Q2009 4Q2010 4Q2009 4Q2010 4Q2009 y‐o‐y y‐o‐y y‐o‐y ASK 6,434 5,863 10% 2,043 1,852 10% 1,788 1,604 11% RPK 5,319 4,409 21% 1,638 1,493 10% 1,392 1,188 17% Load factor 82% 79% 3 ppt 80%

  8. Slide 8: Ancillary Income - AirAsia Group

    Ancillary Income - AirAsia Group Ancillary Income per pax up y‐o‐y across the Group: Malaysia : ↑99% Thailand : ↑ 109% Indonesia: ↑ 108% Malaysia (RM)  Baggage and cargo revenues continue to soar  Higher take‐ups for in‐flight meals, Hot Seat and AirAsia Insure 7

  9. Slide 9: Gearing down, Cash up!

    Gearing down, Cash up! AirAsia 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 Berhad Net Debt 6,726 6,688 6,862 6,248 6,728 6,705 6,356 (RM’mil) Net 3.50 2.60 2.62 2.25 2.27 2.02 1.75 Gearing  Addressing gearing by reducing further to 1.75 times  Achieved cash up to RM1.8 billion ‐ Cash balance

  10. Slide 10: Fleet Development

    Fleet Development Source: CAPA Fleets of various Asian Airlines CURRENT AIRASIA GROUP FLEET SIZE PLAN Airlines In Service On Order AirAsia Group 93 86 Boeing B737 Singapore Airlines 110 48 Airbus A320 Malaysia Airlines 92 59 Thai Airways 86 21 4 4 19 14 Garuda Indonesia 81 35 175 154 Vietnam Airline

  11. Slide 11: Attractive Valuations among airlines

    Attractive Valuations among airlines (as at 22 February 2011)  Largest regional LCC in terms of market capitalization  Lowest P/E among the LCCs  Despite P/E is low, there is upside in ROE. Among the highest at 27.99% Source : AirAsia – Actual 2010, Other airlines ‐ Bloomberg consensus 10

  12. Slide 12: Into the Second Decade

    fir tsUl.com Into the Second | —

  13. Slide 13: Forward Bookings

    Forward Bookings Load factor as at 22 February 2011 Malaysia Indonesia Thailand Increase in demand on air travel  Forward booking remains higher heading into 2Q11 as demand for travel rises  Fares still among lowest in the market hence there is room to increase  Continuous promotional for new rou

  14. Slide 14: Fuel Management

    Fuel Management Proven active measures to counter any spike in fuel prices  Record PAT of RM1.06 billion in 2010 at average fuel price of US$92/barrel at fleet size of 90 aircraft  AirAsia was the first airline to be able to remove fuel surcharge in November 2008.  Counter measures amongst others

  15. Slide 15: AirAsia Group What's ahead in 2011

    AirAsia Group What’s ahead in 2011 MALAYSIA  Strengthening Domestic Operations ‐ Ramping up frequencies on key East Malaysian routes performing well ‐ Increasing domestic market share of 58% in 2010 ‐ International market share of 37% in 2010  Focus on optimizing load factor [  Increased frequenc

  16. Slide 16: AirAsia Group What's ahead in 2011

    AirAsia Group What’s ahead in 2011 Joint Ventures • The launch of Philippines AirAsia in 2H11 • TAA and IAA impending initial public offering • Objectives of the IPO is to: Listing of Associates  build its war chest  to assume future debt on their balance sheet  to acquire their own aircraft in t

  17. Slide 17: Thank You 2010

    ee Thank You 2010

  18. Slide 18: Appendix

    Appendix 17

  19. Slide 19: 4Q10 Financial Results - AirAsia Group

    Appendix 1 4Q10 Financial Results - AirAsia Group MAA TAA IAA Quarter Ended: 31 December Chang 4Q2010 4Q2009 Change 4Q2010 4Q2009 4Q2010 4Q2009 Change 2010 e (RM’000) (RM’000) y‐o‐y (THB’000) (THB’000) (IDR’mil) (IDR’mil) y‐o‐y y‐o‐y Revenue 1,186,467 894,059 33% 3,744,361 2,907,347 29% 795,750 577,

  20. Slide 20: 4Q10 CASK Breakdown - AirAsia Group

    Appendix 2 4Q10 CASK Breakdown - AirAsia Group Quarter ended: 30 December 2010 MAA TAA IAA Cost / ASK (US cents) Staff Costs 0.46 0.51 0.50 Fuel and Oil 1.46 1.70 1.91 User Charges and Station Expenses 0.33 0.55 0.29 Maintenance and Overhaul 0.22 0.33 0.85 Aircraft related cost 0.06 0.99 0.90 Deprec

  21. Slide 21: FY2010 Financial Results - AirAsia Group

    Appendix 3 FY2010 Financial Results - AirAsia Group Financial year MAA TAA IAA ended 31 December 2010 2009 Change 2010 2009 Change 2010 2009 Change 2010 (RM’000) (RM’000) y‐o‐y (THB’000) (THB’000) y‐o‐y (IDR’mil) (IDR’mil) y‐o‐y Revenue 3,392,772 3,178,854 26% 12,390,632 9,325,988 33% 2,764,049 2,01

  22. Slide 22: FY2010 Operating Statistic - AirAsia Group

    Appendix 4 FY2010 Operating Statistic - AirAsia Group Change Malaysia AirAsia 2010 2009 (%) Passenger Carried 16,054,738 14,253,244 12.6 Capacity 20,616,120 19,016,280 8.4 Load Factor (%) 78 75 3ppt ASK (mil) 24,362 21,976 10.9 RPK (mil) 18,500 15,432 19.9 Number of stages 114,534 105,646 8.4 Averag

  23. Slide 23: Accounting for TAA and IAA

    Appendix 5 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

  24. Slide 24: Accounting for TAA and IAA (continued)

    Accounting for TAA and IAA (continued) 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 inves

AirAsia — Q4 2010 Earnings Presentation on 6ix