Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2011 Earnings Presentation
19 slides from Capital A Berhad's earnings presentation, Nov 22, 2011
Slide 1: AirAsia Berhad 3rd Quarter 2011 Results
AirAsia Berhad 3rd Quarter 2011 Results 22 November 2011
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: 3Q11 Results – Key Highlights
3Q11 Results – Key Highlights Malaysia – Operating profit up y-o-y, exceeds expectations Revenue of RM1.08 billion up 10% y-o-y Operating profit of RM251 million up 2% y-o-y Passenger volume grew by 8% y-o-y, achieving 77% load factor EBITDAR margins down only 1 ppt to 39% y-o-y despite high fuel co
Slide 4: 3Q11 – Financial Results
3Q11 – Financial Results MAA TAA IAA RM’000 THB’000 IDR million 3Q11 3Q10 Change 3Q11 3Q10 Change 3Q11 3Q10 Change Revenue 1,076,437 979,710 10% 3,718,674 2,789,197 33% 1,069,564 781,661 37% EBITDAR 415,344 395,755 5% 908,528 998,827 -9% 184,090 293,233 -37% Operating Profit 251,395 246,741 2% 195,4
Slide 5: Consistent Revenue Growth
Consistent Revenue Growth MAA TAA 2009 2010 2011 2009 2010 2011 1,200 CAGR = 14.66% CAGR = 19.92% CAGR = 20.64% 5,000 CAGR = 30.60% CAGR = 35.47% CAGR = 37.26% 1,000 4,000 THB'mil 800 RM'mil 3,000 600 2,000 400 200 1,000 0 0 Q1 Q2 Q3 Q1 Q2 Q3 IAA Optimising revenue growth in line with 2009 2010 2011
Slide 6: 3Q11 – Operating Statistics (Highlights)
3Q11 – Operating Statistics (Highlights) MAA TAA IAA 3Q11 3Q10 Change 3Q11 3Q10 Change 3Q11 3Q10 Change Passengers 4,341,052 4,035,546 8% 1,610,302 1,363,998 18% 1,401,525 1,079,008 30% Carried Capacity 5,601,600 5,155,020 9% 2,021,040 1,794,544 13% 1,801,056 1,334,728 35% Load Factor 77% 78% -1 ppt
Slide 7: YTD’11 – Financial and Operational Highlights
YTD’11 – Financial and Operational Highlights MAA TAA IAA RM’000 THB’000 IDR million YTD’11 YTD’10 Change YTD’11 YTD’10 Change YTD’11 YTD’10 Change Revenue 3,201,096 2,783,737 15% 11,565,168 8,474,850 36% 2,739,664 1,999,151 37% EBITDAR 1,186,837 1,061,943 12% 3,415,419 2,660,899 28% 567,006 647,826
Slide 8: Load Active Airline
Load Active Airline MAA TAA 2009 2010 2011 3Q11 2009 2010 2011 3Q11 85% 90% 80% 81% 84% 80% 78% 85% 81% 77% 77% 80% 75% 75% 80% 78% 77% 76% 74% 76% 75% 75% 70% 75% 70% 70% 70% 65% 65% 60% 60% Q1 Q2 Q3 Q1 Q2 Q3 IAA MAA – Load factor in 3Q11 down due to 3Q11 2009 2010 2011 full month impact of fasting
Slide 9: 3Q11 – CASK Breakdown
3Q11 – CASK Breakdown Cost / ASK (US cents) MAA TAA IAA 3Q11 3Q10 3Q11 3Q10 3Q11 3Q10 Staff Costs 0.64 0.50 0.53 0.48 0.51 0.53 Depreciation 0.73 0.74 0.02 0.06 0.03 0.03 Aircraft Fuel Expense 2.13 1.58 2.32 1.66 2.56 1.73 Aircraft Operating lease 0.10 0.07 1.01 1.04 0.79 0.77 expense Maintenance, O
Slide 10: 3Q11 – Ancillary Income
3Q11 – Ancillary Income 3Q11 Ancillary Income 3Q11 vs 3Q10 In MAA, ancillary income per pax reduce by 14% 50 45 44 to RM39 per pax y-o-y due to reclassification 39 39 39 40 34 RM per pax Reclassification:- Reclassification:- 30 AirAsiaGo (Reclassified as share of associate) Q3 2011 20 – approximatel
Slide 11: 3Q11 – Net Gearing
3Q11 – Net Gearing Net Debt and Net Gearing Net Gearing Net Debt 7,000 3.50 2.62 6,800 2.60 6,600 2.25 2.27 2.02 1.75 6,400 1.57 1.48 1.50 6,200 6,000 5,800 5,600 5,400 5,200 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 Gearing level up slightly from 1.48 to 1.50 q-o-q Cash
Slide 12: Business Updates
———— Business Updates
Slide 13: Fleet Strategy
Fleet Strategy Fleet rollout next 15 years based from Airbus Youngest fleet in the region with an average age of 3 years 30 Airbus Fleet Rollout 25 23 24 24 24 20 20 21 20 18 18 19 17 No of aircraft 15 14 15 13 10 9 10 5 0 201 201 201 201 201 201 201 201 201 202 202 202 202 202 202 202 1 2 3 4 5 6 7
Slide 14: Joint Ventures Update
Joint Ventures Update Joint ventures Details AirAsia Philippines 2 aircraft delivered Target launch earliest late Dec’11 or Jan’12 AirAsia Japan Staff currently being recruited and trained in Malaysia To launch latest Aug’ 12 AirAsia Go/Expedia Launched in July Currently operating is Expedia Japan,
Slide 15: Key Events for 4Q11
Key Events for 4Q11 Entities Details AirAsia Malaysia New routes KL – Danang Increased Frequencies KL – Bangkok (8 times) – AK flights KL – Kota Kinabalu (13 times) KL – Miri (4 times) KL – Singapore (13 times) KL – Langkawi (9 times) Aircraft deliveries 4 aircraft to be delivered into Malaysia MAHB
Slide 16: Key Events for 4Q11 (cont')
Key Events for 4Q11 (cont') Entities Details AirAsia Indonesia New routes Bandung - Surabaya Increased Frequencies Surabaya – Denpasar (2 times) To be a fully Airbus fleet All AirAsia operations have been moved to Terminal 3 16
Slide 17: ex firfssia
ex firfssia
Slide 18: Accounting for TAA and IAA
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 to be a jointly
Slide 19: Accounting for TAA and IAA (cont’)
Accounting for TAA and IAA (cont’) 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 investor in