Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q2 2010 Earnings Presentation
29 slides from Capital A Berhad's earnings presentation, Aug 18, 2010
Slide 1: Second Quarter 2010 Results
Second Quarter 2010 Results 18 August 2010
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: SNAPSHOT – 2nd Quarter 2010: Record Profit for All Operations
SNAPSHOT – 2nd Quarter 2010 RECORD PROFIT FOR ALL 3 OPERATIONS Stellar performance in Malaysia Revenue of RM941 million y‐o‐y recording 26% y‐o‐y growth Profit after tax of RM199 million, up 43% y‐o‐y Passenger volume up of 11% y‐o‐y with a load factor of 77% Thailand profitable despite tu
Slide 4: SNAPSHOT – 2nd Quarter 2010 - AirAsia Group
SNAPSHOT – 2nd Quarter 2010 ‐ AirAsia Group Quarter Ended: 30 June 2010 Malaysia AirAsia Thai AirAsia Indonesia AirAsia RM'000 unless otherwise stated Revenue 940,656 267,389 233,211 EBITDAR 383,171 68,681 88,046 EBITDA 365,150 17,597 47,358 EBIT 242,830 14,107 46,126 Profit before tax 143,654 4,906
Slide 5: Financial Results - Malaysia
Financial Results ‐ Malaysia Change Change 2Q2010 2Q2009 1H10 1H09 Quarter Ended: 30 June 2010 y‐o‐y y‐o‐y RM'000 unless otherwise stated Revenue 940,656 747,996 26% 1,818,697 1,545,127 18% EBITDAR 383,171 352,764 9% 706,687 742,720 5% EBITDA 365,150 319,059 14% 666,834 681,364 2% EBIT 242,830 217,2
Slide 6: Operating Statistics - Malaysia
Operating Statistics ‐ Malaysia Change Quarter Ended: 30 June 2010 2Q2010 2Q2009 y‐o‐y Passenger Carried 3,893,476 3,519,486 11% Increasing passenger and capacity volumes due to 2 Capacity 5,061,240 4,707,360 8% new aircraft in 2Q10. Load Factor 77% 75% 2 ppt ASK (million) 5,943 5,450 9% Average
Slide 7: Capacity Growth & Load Factor - Malaysia
Capacity Growth & Load Factor ‐ Malaysia Increased travel demand Successful revenue management Load factor increased by 2ppt y‐o‐y RASK up 26% y‐o‐y due increased passenger demand and positive Increased frequencies and contribution from ancillary income introduction of new routes 6
Slide 8: Financial Results - Thailand
Financial Results ‐ Thailand Quarter Ended: 30 June Change 2010 Change 2Q2010 2Q2009 1H10 1H09 y‐o‐y THB'000 unless otherwise y‐o‐y stated Revenue 2,664,430 2,049,037 30% 5,772,766 4,444,873 30% EBITDAR 684,381 352,618 94% 1,667,478 1,108,760 50% EBITDA 175,350 (59,618) 394% 657,934 271,278 143% EBI
Slide 9: Operating Statistics - Thailand
Operating Statistics ‐ Thailand Change Quarter Ended: 30 June 2010 2Q2010 2Q2009 y‐o‐y Passenger Carried 1,237,952 1,115,648 11% 11% increase in passenger Capacity 1,651,192 1,596,056 3% carried supported with strong increase average fare of 12% Load Factor 75% 70% 5 ppt ASK (million) 1,780 1,474
Slide 10: Capacity Growth & Load Factor - Thailand
Capacity Growth & Load Factor ‐ Thailand Thailand passenger traffic still up y‐o‐y Load factor up 75% y‐o‐y despite capacity increase More frequencies added into existing domestic routes and higher yielding international routes Thailand outperforming in Q210 despite political turmoil – Passe
Slide 11: Financial Results - Indonesia
Financial Results ‐ Indonesia Quarter Ended: 30 June 2010 Change Change IDR‘million unless otherwise 2Q2010 2Q2009 1H10 1H09 y‐o‐y y‐o‐y stated Revenue 655,769 454,529 44% 1,184,124 839,192 41% EBITDAR 247,578 59,379 317% 355,073 129,400 174% EBITDA 133,166 (57,349) 332% 125,285 (88,001) n/a EBIT 12
Slide 12: Operating Statistics - Indonesia
Operating Statistics ‐ Indonesia Change Quarter Ended: 30 June 2010 2Q2010 2Q2009 y‐o‐y 10% passenger increase y‐o‐y Passenger Carried 947,786 863,440 10% in high season Capacity 1,269,112 1,164,588 9% Higher average fare of 23% Load Factor 75% 74% 1 ppt was due to strong demand on international
Slide 13: Passenger Growth & Load Factor - Indonesia
Passenger Growth & Load Factor ‐ Indonesia Growing market Longer sector performing Load factor of 75% compared to Yield growth of 18% y‐o‐y due to 74% y‐o‐y longer routes and high take up in ancillary products Newer fleet of Airbus increases New frequencies added on highly efficiency yie
Slide 14: Group Ancillary Income
Group Ancillary Income Ancillary Income per pax up y‐o‐y across the Group: Malaysia : ↑59% Thailand : ↑ 40% Indonesia: ↑ 88% n Malaysia (RM) Strong results in ancillary income y‐o‐y due to new ancillary revenue streams Baggage fees and AirAsia Cargo significant contributor to Ancillary income 13
Slide 15: Gearing and Aircraft Deferment
Gearing and Aircraft Deferment AirAsia to defer deliveries of its Airbus A320 orders for 2011 ‐ To address capacity constraints at current LCCT ‐ Maintaining sustainable growth ahead of our competitors ‐ No penalty cost imposed by Airbus for deferrals Improved Net Gearing expected after defermen
Slide 16: Cash Balances
Cash Balances Achieved cash and cash equivalents close to RM1 billion Cash balance of RM858 million Including deposit on aircraft purchases, total cash is close to RM1.1 billion Cash balance to further increase with expected payments from associates Strong quarter from Thailand and Indones
Slide 17: Aircraft Delivery Schedule
Aircraft Delivery Schedule Delivery schedule for 2010 on schedule Delivery Month No. of planes Deployments Quarter 3 (Jul – Sept) 6 4 ‐ Thailand 2 ‐ Malaysia Quarter 4 (Oct – Dec) 4 1 ‐ Thai 3 ‐ Indonesia 2011 8 4 – Malaysia (Announced) 2 – Thailand 2 – Indonesia 2012 10 5 – Malaysia (In‐discussio
Slide 18: Fleet Composition (30 June 2010)
Fleet Composition (30 June 2010) Number of Aircraft Total Airbus A320 Boeing 737 Malaysia 50 50 0 Thailand 20 15 5 Indonesia 15 11 4 Group Total 85 76 9 Continuing to be a full Airbus fleet by end 2010
Slide 19: Investment Allowance
Investment Allowance Investment Allowance Incentive (“IA”) Equity Accounting is granted to AirAsia Berhad (“AirAsia”) by Malaysia’s Ministry of Finance. The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post‐acquisiti
Slide 20: Outlook 2010
Outlook 2010 20
Slide 21: Forward Bookings
Forward Bookings Load factor as at 31 July 2010 Malaysia Indonesia Thailand Increase in demand on air travel Forward booking trending upwards y‐o‐y Strong take up rates in Malaysia and Indonesia in September despite fasting month of Ramadan Consistent introduction of promotional campaigns in l
Slide 22: SET TO SOAR
SET TO SOAR ENHANCING VALUE IN THE PAST 8 YEARS: LCC ‐ Largest in Asia FLEET ‐ Current fleet of 80 brand new Airbus A320 aircraft ROUTES & NETWORK ‐ Unparallel connectivity in ASEAN through route network and frequency BRAND ‐ A global ASEAN brand ANCILLARY ‐ Moving beyond convention : monetising web
Slide 23: Goals for 2010
Goals for 2010 STRENGTHENING BALANCE SHEET IMPROVE TRANPARENCY ‐ strong performance by associates will ‐ to increase transparency on disclosures accelerate repayment of amount dues and ‐ pro‐forma financials on associates to be provided increase cash availability ‐ target net gearing excluding a
Slide 24: Summary
Summary THE GROUP CARRIED OVER 6.1 MILLION GUESTS IN 2Q10 COMPARED TO 5.4 MILLION GUESTS IN 1Q09 MALAYSIA’S ANCILLARY INCOME ACHIEVED 18% OF TOTAL REVENUE COMPARED TO 16% IN LAST QUARTER ‐ All three operations posted over 70% increase in ancillary revenue y‐o‐y THAILAND POSTING STRONG QUARTER
Slide 25: Thank you
Thank you 25
Slide 26: Appendix
Appendix 26
Slide 27: Appendix - 2Q10 Cost Breakdown for AirAsia Group
Appendix ‐ 2Q10 Cost Breakdown for AirAsia Group Quarter ended: 30 June 2010 MAA TAA IAA Cost / ASK (US cents) Staff Costs 0.41 0.42 0.32 Fuel and Oil 1.67 1.66 1.47 User Charges and Station Expenses 0.29 0.53 0.39 Maintenance and Overhaul 0.06 0.39 0.27 Aircraft related cost 0.09 0.88 0.77 Deprecia
Slide 28: 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 jo
Slide 29: 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