Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q1 2018 Earnings Presentation
19 slides from Capital A Berhad's earnings presentation, May 2018
Slide 1: Analyst Presentation First Quarter 2018 Financial Results
Now Everyone Can Fly Ventures travel > BIG LOYALTY AIRASIA GROUP BERHAD ANALYST PRESENTATION FIRST 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: 1Q2018 Highlights: Financial Performance
1Q2018 HIGHLIGHTS A REMARKABLE START TO 2018 1. Financial Performance 1Q17 ange Revenue (RM billion) 2.56 2.23 +15% Net Operating Profit (RM million) 641 267 +140% Net Profit (RM million) 1,090 584 +87% EBITDAR (RM million) 1,131 744 +52% * Revenue up 15% YoY to RM2.56 billion, attributed from: = Pa
Slide 4: 1Q2018 Highlights: Key Operating Statistics
1Q2018 HIGHLIGHTS A REMARKABLE START TO 2018 2. Key Operating Statistics Passengers carried (AirAsia Group Berhad!) (million) Capacity (million) 10.27 +19% Load Factor (%) 89 -2ppts Passengers carried (AirAsia Group!2]) (million) 14.85 +20% RASK (sen) 14.91 -2% CASK (sen) 13.61 0% CASK ex-fuel (sen)
Slide 5: 1Q2018 Highlights: AOCs and Monetising of Assets
1Q2018 HIGHLIGHTS A REMARKABLE START TO 2018 3. One AirAsia’s initiative, AOCs moving in the right direction MYR (million) Malaysia Thailand Indonesia Philippines India Group Average REVENUE/AIRCRAFT/1Q2018 EBITDAR/AIRCRAFT/1Q2018 EMPLOYEE/AIRCRAFT/1Q2018 REVENUE/ASK (US CENTS) COST/ASK (US CENTS) A
Slide 6: 1Q2018 Highlights: Competition, Fleet and Group Structure
1Q2018 HIGHLIGHTS A REMARKABLE START TO 2018 5. Competition MAS reduced 263 weekly flights from 3,226 to 2,963 in 1Q18; frequency reduction on 24 routes (DOM & INT) Malindo reduced 364 weekly flights from 1,728 to 1,364 in 1Q18; reduced 10 weekly busiest routes from KUL; frequency reduction on 20 ro
Slide 7: 1Q2018 Highlights: Digital and Traction
1Q2018 HIGHLIGHTS A REMARKABLE START TO 2018 9. Digital and Traction All AOCs incl. AAX Conversion rate: Mobile App 3.1% 2.9% 7% Website 8.8% 6.8% 29% Unique Users: Mobile App (million) 51.5 25 106% Website (million) 97.9 87 13% Mobile Device penetration: Flight search 57.8% 50.2% 15% Bookings 39.6%
Slide 8: Associates' Performance: AirAsia Thailand
ASSOCIATES’ PERFORMANCE HIGHLIGHTS AIRASIA THAILAND 7 New Routes originating from Bangkok (4), Passengers Carried 4,851,398 Phuket (2) and Chiang Mai (1) in 1Q18 Capacity 5,423,652 +15% * Grew fleet to 59 in 1Q18 from 53 in 1Q17 Load factor (%) 89 +2ppts * Our Thai operations did remarkably by recor
Slide 9: Associates' Performance: AirAsia India
ASSOCIATES’ PERFORMANCE HIGHLIGHTS AIRASIA INDIA 1Q18 1Q17 Passengers Carried 844,964 +74% * Revenue up by 76% YoY in 1Q18 for India Capacity 945,180 +87% * 6 New Routes originating from Bengaluru (3), Load Factor (%) 89 -6ppts Chennai (1), Goa (1) and Kolkata (1) in 1Q18 Number of Flights 5,251 +87
Slide 10: Ancillary in 1Q2018
ANCILLARY IN 1Q2018 STEADY AS SHE GOES Ancillary Revenue (RM million) 1Q17 1Q18 + AirAsia Group Berhad’s" ancillary revenue increased 11% YoY from RM454.6 million in 1Q17 to RM505.1 million in 1Q18 attributed from 16% increase in passenger carried, whilst ancillary income per pax stood at RM47 * Dyn
Slide 11: Ancillary Initiatives
ANCILLARY INITIATIVES Ancillary Pricing Optimisation Navitaire * Boost ancillary revenue by USD60 million per year * Results to be realised starting 4Q2018 Dolly ePOS * Electronic Point of Sale device given out to all Cabin Crew * Prediction on future purchasing behavior resulting in higher ancillar
Slide 12: Developing Platforms
DEVELOPING PLATFORMS LIKE AMAZON AirAsia.com Ticketing & Booking Merchandise OurShop Online Retail Portal & Duty Free Ancillary Santan RedTix travel Oo Travel360 Vidi - TripAdvisor/ Traveloka Travel & Lifestyle Content Platform e-Magazine Travel Portal Ticketing Holiday Series 10 BIG y LOYALTY BIG L
Slide 13: 2018 and Beyond
2018 AND BEYOND EXCITING TIMES AHEAD 1. Unlocking future values + Expedia - Target sale to conclude by 3Q18 2. Corporate Exercises + Listed PT AirAsia Indonesia Tok on 29 December 2017, Current market cap - USD187 million; secondary listing in 2H2018 * On target for AirAsia Philippines’ IPO in 2H201
Slide 14: 2018 and Beyond: Upcoming Digital Projects
2018 AND BEYOND EXCITING TIMES AHEAD Upcoming digital projects Project Launch date Targets Competitor Data Analysis 31 May 2018 Better Targeting & Pricing Incremental Booking: +5% to +7% Automated alert on flight booking Proactive action to achieve business KPI (booking , flight search) performance
Slide 15: Thank You & Appendix
Now Everyone Can Fly THANK YOU 5 & Ventures Woo APPENDIX BIG LOYALTY
Slide 16: Airline Valuations
AIRLINE VALUATIONS PEER COMPARISONS BASED ON CONSENSUS PRICE TO EARNINGS + As at May 2018, AirAsia Group Berhad’s consensus is EV/EBITDA MULTIPLE Consensus EV at RM17.2 billion, actual EV is RM20.6 billion trading at Price-to-Earnings of 6.7x, with Net Operating * As at May 2018, AirAsia Group Berha
Slide 17: AirAsia Group Berhad's True Value
AIRASIA GROUP BERHAD’S TRUE VALUE SUM OF THE PARTS STAKE ENTERPRISE VALUE (RM’ MIL) AirAsia Group Shorthaul Operations 100% 19,713 Ground Team Red 51% 6 AirAsia X Berhad 14% 216 Tune Protect Group Berhad 14% 76 AAE Travel Pte Ltd 25% 571 AirAsia Global Shared Services Sdn Bhd 100% 3 T & Co Coffee 80
Slide 18: AirAsia Indonesia 1Q18 Income Statement & Operating Statistics
APPENDIX AIRASIA INDONESIA 1Q18 INCOME STATEMENT & OPERATING STATISTICS Quarter Ended: 31 March Jan - Mar Jan-Mar Change IDR million 2018 2017 YoY Revenue 834,444 878,806 -5% Jan - Mar Jan - Mar - ; Quarter Ended: 31 March 2018 2017 Operating expenses: |- Staff costs (193,308) (169,008) 14% |- Depre
Slide 19: AirAsia Philippines 1Q18 Income Statement & Operating Statistics
APPENDIX AIRASIA PHILIPPINES 1Q18 INCOME STATEMENT & OPERATING STATISTICS Quarter Ended: 31 March Jan - Mar Jan - Mar Change PHP‘00O0 2018 2017 YoY Jan-Mar Jan-Mar Change Revenue 5,273,816 | 3,621,144 46% Quarter Ended: 31 March 2018 2017 YoY Operating expenses: |. Stott conte p (546,509) | (406,061