Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q4 2019 Earnings Presentation
24 slides from Capital A Berhad's earnings presentation, Feb 27, 2020
Slide 1: Analyst Presentation: Fourth Quarter and Full Year Results FY2019
AirAsia Group Berhad Analyst Presentation Fourth Quarter and Full Year Results for the Financial Year 2019 27 February 2020
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: 4Q 2019 Group Key Highlights
4Q 2019 Group Key Highlights Despite P&L loss of RM385mil, we view the results positively. RM mil Core PAT of RM45 mil even after investing in digital infrastructure Reported PAT -385 Note 32 one-offs 102 Importantly, we reported a positive operating cashflow post Share of losses of AirAsia India 133
Slide 4: 4Q & FY 2019 Financial Highlights
4Q & FY 2019 Financial Highlights Revenue Core Profit Operating Cash Flow Robust revenue growth of 18% Core loss for 4Q19 improved 112% from Operating CF (post operating lease) for 4Q19 and 15% for FY19 RM387mil to core profit of RM45mil turned positive for 4Q19 and 18% 15% improved by 298% in FY19 ba
Slide 5: Ancillary model is working
Ancillary model is working FY19 Ancillary revenue up 31%; 23% of revenue Airline ancillary Non-airline ancillary up 189% YoY grew 11% YoY RM2,092mil Full Year Highlights: ● FY19 ancillary grew 35%; 23% of revenue. 4Q19 ancillary grew 16% ● Airline ancillary grew 11% YoY ● Non-airline ancillary grew
Slide 6: Digital strategy gaining momentum
Digital strategy gaining momentum ● GTV grew 42% QoQ ● Downloads > 1 million users; >20% growth QoQ ● Largest digital e-money issuer in Malaysia by transactional volume ● In Q4, BigPay launched its remittance product - offering seamless, fast and low cost transfer to any banks in India, Singapore, I
Slide 7: Priorities for 2020; Dealing with Covid-19
Priorities for 2020; Dealing with Covid-19 ● Undertaking proactive mitigating actions to limit downside impact from Covid-19. We have actively managed our capacity since early Feb. Post recent adjustment, we forecast the following ASK YoY changes for 1Q 2020: MAA: -10%, TAA: -23%, IAA: +19%, PAA: +8
Slide 8: Op Stats YTD & Forward Bookings
Op Stats YTD & Forward Bookings Op Stats YTD: Forward bookings for 6 AOCs Seeing passengers carried declined ~10% YoY group-wide beginning week 3 Feb 2020 8
Slide 9: Investor Relations contact
https://www.airasia.com/aagbir RedQ, Sepang, Malaysia aagb_ir@airasia.com 9
Slide 10: FY 2019 Airline Key Highlights
FY 2019 Airline Key Highlights AirAsia Malaysia faced a difficult year as competition persist and much weaker demand to HK and Macau - Despite that revenue has grown 4% while EBITDA improved over 46% to record RM2,152mil. - Overall, Malaysia is profitable even at much worse operating environment and
Slide 11: 4Q19 Ancillary revenue up 16%; 23% of revenue
4Q19 Ancillary revenue up 16%; 23% of revenue Non-airline ancillary 105% YoY Airline ancillary shrunk 1% RM523mil 4Q19 Highlights: ● 4Q19 ancillary grew 16%; 23% of revenue ● Airline ancillary came down slightly by 1% YoY ● Non-airline ancillary grew 105% YoY ● PAA ancillary grew 20%; IAA ancillary
Slide 12: Strengthening Market Share
Strengthening Market Share 1ppt 2ppts 2ppts 4ppt 1ppt 1ppt 2ppts 5ppts 4ppts 3ppts 1ppt 1ppt 6ppts 1ppt 3ppts 12
Slide 13: 4Q19 Financial & Operational Performance
4Q19 Financial & Operational Performance MAA IAA PAA Key Indicators 4Q18 4Q19 % 4Q18 4Q19 % 4Q18 4Q19 % Passengers Carried 8,523,287 8,684,893 ▲ 2% 1,724,836 2,238,752 ▲ 30% 1,861,018 2,245,583 ▲ 21% Capacity 10,205,214 10,608,264 ▲ 4% 2,090,880 2,764,080 ▲ 32% 2,084,040 2,648,700 ▲ 27% OPERATIONAL
Slide 14: 4Q19 Financial & Operational Performance (cont'd)
4Q19 Financial & Operational Performance (cont’d) TAA AAI AAJ Key Indicators 4Q18 4Q19 % 4Q18 4Q19 % 4Q18 4Q19 % Passengers Carried 5,501,938 5,424,283 ▼ -1% 1,933,337 2,685,418 ▲ 39% 70,778 137,873 ▲ 95% Capacity 6,395,670 6,272,148 ▼ -2% 2,253,060 3,099,240 ▲ 38% 98,820 191,400 ▲ 94% OPERATIONAL L
Slide 15: FY19 Financial & Operational Performance
FY19 Financial & Operational Performance MAA IAA PAA Key Indicators FY18 FY19 % FY18 FY19 % FY18 FY19 % Passengers Carried 32,332,497 35,038,498 ▲ 8% 5,238,020 7,967,267 ▲ 52% 6,866,862 8,553,305 ▲ 25% Capacity 38,044,614 41,633,436 ▲ 9% 6,412,860 9,530,460 ▲ 49% 8,079,480 9,720,720 ▲ 20% OPERATIONA
Slide 16: FY19 Financial & Operational Performance (cont'd)
FY19 Financial & Operational Performance (cont’d) TAA AAI AAJ Key Indicators FY18 FY19 % FY18 FY19 % FY18 FY19 % Passengers Carried 21,568,733 22,149,474 ▲ 3% 6,830,757 9,261,439 ▲ 36% 261,714 485,016 ▲ 85% Capacity 25,235,346 26,078,790 ▲ 3% 8,218,260 10,430,820 ▲ 27% 329,040 619,764 ▲ 88% OPERATIO
Slide 17: Malaysia FY19 Income Statement & Operating Statistics
Malaysia FY19 Income Statement & Operating Statistics Year Ended: 31 Dec FY18 FY19 Change Year Ended: 31 Dec FY18 FY19 Change RM ‘000 YoY YoY Revenue 7,218,550 7,509,751 4% Passengers Carried 32,332,497 35,038,498 8% Capacity 38,044,614 41,633,436 9% Operating expenses: Seat Load Factor 85% 84% -1pp
Slide 18: Indonesia FY19 Income Statement & Operating Statistics
Indonesia FY19 Income Statement & Operating Statistics Year Ended: 31 Dec FY18 FY19 Change Year Ended: 31 Dec FY18 FY19 Change IDR ‘000 YoY YoY Revenue 3,768,679,118 6,732,005,187 79% Passengers Carried 5,238,020 7,967,267 52% Capacity 6,412,860 9,530,460 49% Operating expenses: Seat Load Factor 82%
Slide 19: Philippines FY19 Income Statement & Operating Statistics
Philippines FY19 Income Statement & Operating Statistics Quarter Ended: 30 Dec FY18 FY19 Change Quarter Ended: 31 Dec FY18 FY19 Change PHP ‘000 YoY YoY Revenue 20,959,488 27,352,697 31% Passengers Carried 6,866,862 8,553,305 25% Capacity 8,079,480 9,720,720 20% Operating expenses: Seat Load Factor 8
Slide 20: Fuel Hedging
Fuel Hedging ● Latest Brent hedges as follows: 2020 2021 AirAsia Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Hedge Ratio (Brent) 80% 71% 70% 74% 20% 20% 19% 18% Average Brent Hedge (Qtrly) 59.85 60.28 58.20 60.41 59.41 59.40 59.49 59.49 Average Hedge Cost 59.71 59.45 ● 18%-21% of Q1 2020 to Q3 2020 crack
Slide 21: Fleet Plan
Fleet Plan Fleet Expansion Across AOCs in 2020 MAA TAA IAA PAA AAI AAJ Total December 2019* 97 63 28 24 29 3 244 2020 Net Addition 1 -4 3 2 7 2 11 * December 2019 fleet excludes 2 third party leases Target aircraft financing for 2020: All on sale and leaseback. +30 +30 +30 +30 ↷ ↷ ↷ +39 +30 ↷ ↷ ↷ ↷ +4
Slide 22: RedBeat Ventures: BigPay
RedBeat Ventures: BigPay Revenue EBITDA RM million RM million ● Revenue grew 46% QoQ ● Downloads > 1 million users; >20% growth QoQ ● GTV grew 42% QoQ ● Largest digital e-money issuer in Malaysia by transactional volume ● In 4Q, BigPay launched its remittance product - offering seamless, fast and lo
Slide 23: RedBeat Ventures: Teleport
RedBeat Ventures: Teleport Revenue EBITDA Tonnage tonne ‘000 RM million tonne ‘000 RM million ● Revenue grew 50% to RM147mil in 4Q19. FY19 revenue of RM481mil beat target of RM400mil ● 4Q19 tonnage up 24% YoY while global industry contracted 3% ● In 4Q19, signed a direct interline agreement with lea
Slide 24: AirAsia.com
AirAsia.com Revenue EBITDA RM million airasia.com RM million ● Revenue grew more than threefold YoY to RM11.1mil ● GBV of RM5.5bil in 4Q2019, up 15% YoY ● In 4Q2019, AirAsia.com expanded offering to include flights of other airlines, powered by Kiwi.com and launched AirAsia Deals, inclusive of lifest