Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q3 2019 Earnings Presentation
19 slides from Capital A Berhad's earnings presentation, Nov 27, 2019
Slide 1: Analyst Presentation: Third Quarter Results FY2019
AirAsia Group Berhad Analyst Presentation Third Quarter Results for the Financial Year 2019 27 Nov 2019
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: 3Q 2019 Key Highlights
3Q 2019 Key Highlights Revenue up 18% YoY despite receiving 53% lesser operating lease income. Excluding operating lease income, revenue was up 24%. Strong performance of AirAsia Indonesia and AirAsia Philippines with continued momentum into 4Q19 AirAsia Malaysia decided to grow domestic market shar
Slide 4: 3Q 2019 Key Highlights (cont'd)
3Q 2019 Key Highlights (cont’d) AirAsia India revenue grew 58% and gained domestic market share ● RASK up 27%. Load factor improved 14ppts to 90%. Gained 2ppts domestic market share to 7% ● CASK up 5% due to forward hiring to cater for additional aircraft and rescheduling of major maintenance schedu
Slide 5: 3Q 2019 Financial Highlights
3Q 2019 Financial Highlights Revenue Net Operating Profit Operating Cash Flow Robust revenue growth of 18% YoY Net Operating Profit down to RM2mil Operating Cashflow (post operating lease) marginally down 7% YoY in 9M19 RM million ● Revenue grew 18% YoY: ○ 19% increase in ASK and strong load factor of
Slide 6: Ancillary revenue up 26%; 23% of revenue
Ancillary revenue up 26%; 23% of revenue Non-airline ancillary 72% YoY Airline ancillary grew 16% YoY 3Q19 Highlights: RM518mil ● Total ancillary grew 26% to RM686mil, 23% of revenue ● Airline ancillary grew 16% YoY ● Non-airline ancillary grew 72% ● PAA ancillary grew 45%; IAA ancillary 64% ● Seat
Slide 7: RedBeat Ventures: BigPay
RedBeat Ventures: BigPay Revenue EBITDA RM million ● Revenue grew 30% QoQ ● User base increased 28% QoQ to 850k users ● GTV grew 27% QoQ ● Largest digital e-money issuer in Malaysia by transactional volume ● In 3Q2019, successfully launched a fully digital remittance product, enabling users to send
Slide 8: RedBeat Ventures: Teleport
RedBeat Ventures: Teleport Revenue EBITDA Tonnage tonne ‘000 RM million ● Revenue grew to RM121mil in 3Q19. 9M19 revenue of RM334mil on track to reach FY19 target of RM400mil ● 3Q19 tonnage up 7% YoY while global industry contracted 5% ● In 3Q2019, co-invested US$10.6mil in EasyParcel for its Series
Slide 9: AirAsia.com
AirAsia.com Revenue EBITDA RM million ● Revenue grew more than twofold to RM7.4mil ● GBV of RM5.1bil in 3Q2019, up 20% YoY ● Enabled guests to prebook two meals, optimised ancillary recommendation using data science, added hotel widgets, activities search widgets and product badges on homepage, incr
Slide 10: Strategies and priorities for 2020
Strategies and priorities for 2020 Completed Priorities Corporate structure reorganised as we set the right pillars Repositioning the business to adapt to new accounting towards becoming a travel and financial platform company treatment along with restructured aircraft ownership (from and to build ai
Slide 11: RedQ, Sepang, Malaysia
RedQ, Sepang, Malaysia https://ir.airasia.com/home_ir.html aagb_ir@airasia.com 11
Slide 12: Financial & Operational Performance (MAA, IAA, PAA)
Financial & Operational Performance MAA IAA PAA Key Indicators 3Q18 3Q19 % 3Q18 3Q19 % 3Q18 3Q19 % Passengers Carried 7,980,797 8,845,823 ▲ 11% 1,236,068 2,048,968 ▲ 66% 1,579,035 2,107,387 ▲ 33% Capacity 9,669,210 10,636,026 ▲ 10% 1,502,460 2,411,640 ▲ 61% 2,058,120 2,453,940 ▲ 19% OPERATIONAL Load
Slide 13: Financial & Operational Performance (TAA, AAI, AAJ)
Financial & Operational Performance TAA AAI AAJ Key Indicators 3Q18 3Q19 % 3Q18 3Q19 % 3Q18 3Q19 % Passengers Carried 5,117,230 5,284,489 ▲ 3% 1,600,684 2,352,141 ▲ 47% 81,144 150,277 ▲ 85% Capacity 6,336,912 6,547,152 ▲ 3% 2,100,240 2,621,520 ▲ 25% 91,620 178,932 ▲ 95% OPERATIONAL Load Factor (%) 8
Slide 14: Strengthening Market Share
Strengthening Market Share = flat 3ppts 1ppt 1ppt 2ppts 3ppts = 5ppts 2ppts 4ppts flat 1ppt = 7ppts 1ppt 2ppts flat 14
Slide 15: Malaysia 3Q19 Income Statement & Operating Statistics
Malaysia 3Q19 Income Statement & Operating Statistics Quarter Ended: 30 Sept 3Q18 3Q19 Change Quarter Ended: 30 Sept 3Q18 3Q19 Change RM ‘000 YoY YoY Revenue 1,849,033 1,896,047 3% Passengers Carried 7,980,797 8,845,823 11% Capacity 9,669,210 10,636,026 10% Operating expenses: Seat Load Factor 83% 8
Slide 16: Indonesia 3Q19 Income Statement & Operating Statistics
Indonesia 3Q19 Income Statement & Operating Statistics Quarter Ended: 30 Sept 3Q18 3Q19 Change Quarter Ended: 30 Sept 3Q18 3Q19 Change IDR ‘000 YoY YoY Revenue 1,066,841,441 1,833,019,878 72% Passengers Carried 1,236,068 2,048,968 66% Capacity 1,502,460 2,411,640 61% Operating expenses: Seat Load Fa
Slide 17: Philippines 3Q19 Income Statement & Operating Statistics
Philippines 3Q19 Income Statement & Operating Statistics Quarter Ended: 30 Sept 3Q18 3Q19 Change Quarter Ended: 30 Sept 3Q18 3Q19 Change PHP ‘000 YoY YoY Revenue 4,448,686 6,225,455 40% Passengers Carried 1,579,035 2,107,387 33% Capacity 2,058,120 2,453,940 19% Operating expenses: Seat Load Factor 7
Slide 18: Fuel Hedging
Fuel Hedging • Our Group’s fuel hedging strategy is based on our forward sales booking • Brent – 65% hedged for FY19 at USD62.77 per barrel; 73% hedged for FY20 at USD60.22 per barrel; FY21 19% at USD59.45 bbl 2019 2020 AirAsia Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Hedge Ratio (Brent) 53% 52% 70% 86
Slide 19: Fleet Plan
Fleet Plan Fleet Expansion Across AOCs in 2019 & 2020 MAA TAA IAA PAA AAI AAJ Total December 2018* 95 62 24 22 19 2 224 2019 Net Addition 2 0 4 2 9 1 18 2020 Net Addition 0 -3 3 2 7 3 12 * December 2018 fleet excludes 2 third party leases Target aircraft financing for 2019 & 2020: All on sale and leas