Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q2 2009 Earnings Presentation
38 slides from Capital A Berhad's earnings presentation, Aug 12, 2009
Slide 1: Leaving the Competition Behind
Leaving the Competition Behind Second Quarter (Apr-Jun) 2009 Results 12 Aug 2009
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: Key Highlights for Second Quarter
Key Highlights for Second Quarter Disciplined growth – Group fleet size of 75 operational aircraft (end of June) – capacity growth of 22% and passenger growth of 24% year on year Second quarter results exceeds expectations – core operating profit 128 million, 328% growth – core operating profit marg
Slide 4: AirAsia Outperforming the Industry Significantly
AirAsia Outperforming the Industry Significantly Net Income in First Half 2009 (RM million) 342m AirAsia profits not uplifted by mark to market gains on hedge instruments. Profits are derived from:- lowest cost lowest fare efficiency and great service is key Source: Bloomberg, Company data 3
Slide 5: Our Route Network Getting Bigger and Bigger
Our Route Network Getting Bigger and Bigger Period # Routes Served 2002 6 2003 11 2004 26 2005 52 2006 65 2007 75 2008 104 NOW 117 Latest Route KL – Colombo Penang – Hong Kong Upcoming Route Bangkok – Taipei Kota Kinabalu – Taipei 43 unique routes 4
Slide 6: Deferring Aircraft Due to Infrastructure Constraints
Deferring Aircraft Due to Infrastructure Constraints Deferred eight Airbus order for 2010 – very likely to defer an additional eight in 2011 – new delivery schedule is more conducive for current environment There has been no progress on the new Low Cost Terminal – MAHB have not provided any blue pri
Slide 7: Result Commentary - Second Quarter 2009
Result Commentary - Second Quarter 2009
Slide 8: Q2 2009: Revenue Growth Components
Q2 2009: Revenue Growth Components Year-Over-Year % Change Revenue growth Robust volume Load active, yield passive driven by volume growth driven by lower fares to gain more market share price is not the new routes deflationary environment primary growth frequency addition new routes requires time t
Slide 9: Capacity Rollout Matches Demand
Capacity Rollout Matches Demand ASK (million) 22% 5,520 4,514 Capacity growth of 22% YoY – new routes introduced – increase frequency Q1-2008 Q1-2009 Load Factor 75.2% -0.4 ppt 74.8% Load factor remains stable – the only airline that is able to grow capacity and maintain stable load factor Q1-2008 Q
Slide 10: No Impact from Competitor's Sales Campaign
No Impact from Competitor’s Sales Campaign 800 Domestic Malaysia Passengers Carried (‘000) 700 600 500 400 300 200 100 0 Jan-08 Feb-08 Mar-08 May-08 Jun-08 Jul-08 O ct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 May-09 Jun-09 Sep-08 Apr-08 Aug-08 Apr-09 AirAsia continues to dominate the Malaysian domestic
Slide 11: Driving Growth From Ancillary Income
Driving Growth From Ancillary Income 120 RM million 14.5% 0. 2 0. 1 12.8% % Revenue 0. 1 100 0. 1 10.3% 95.1 0. 1 91.2 80 8.2% 0. 1 8.1% 0. 1 7.6% 73.8 69.7 0. 1 60 0. 1 0. 1 50.3 40 0. 1 40.9 0. 0 0. 0 20 0. 0 0. 0 0 0. 0 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 Ancillary to support high profit margins and stab
Slide 12: Core Operating Profit
Core Operating Profit Quarter Ended: 30 June Apr-Jun Apr-Jun ∆ (%) RM'000 2009 2008 Profit before taxation 138,162 (46,901) -395% Adjustments: Unwinding of derivatives (gain) / loss 6,238 0 n/a Forex (gain) / loss (11,678) 76,885 -115% Disposal of assets (gain) / loss (4,296) 0 n/a Core Operating Pr
Slide 13: Result Commentary - First Half 2009
Result Commentary - First Half 2009
Slide 14: First Half 2009: Revenue Growth Components
First Half 2009: Revenue Growth Components Year-Over-Year % Change Revenue growth Passenger volume Lower fare to drive high traffic growth primarily volume growth driven by load active, yield passive driven new routes frequency addition Ancillary to offset fare reduction new products and services to
Slide 15: Summary of First Half Result
Summary of First Half Result First Half Ended: 30 June Jan-Jun 2009 Jan-Jun 2008 ∆ (%) Revenue (RM’000) 1,371,622 1,143,673 20% EBITDAR (RM’000) 586,171 278,345 111% Core Operating Profit (RM’000) 288,151 53,992 434% EBITDAR Margin 42.7% 24.3% 18.4 ppt Core Operating Profit Margin 21.0% 4.7% 16.3 pp
Slide 16: Associate Updates
fur Asia Associate Updates
Slide 17: AirAsia Thai Updates
AirAsia Thai Updates Quarter Ended: 31 March Apr- Apr-Jun Apr- Apr-Jun ∆ (%) THB' 000 2009 2008 Revenue 2,025,312 2,062,413 (2%) EBITDAR 352,618 (125,675) n/a Profit after Tax (80,575) (446,376) 82% Profit after Tax (RM'000) (8,187) (44,266) 82% EBITDAR Margin 17.4% -6.1% n/a Profit after Tax Margin
Slide 18: AirAsia Indonesia Updates
AirAsia Indonesia Updates Quarter Ended: 31 March Apr- Apr-Jun Apr- Apr-Jun ∆ (%) IDR million 2009 2008 Revenue 452,286 332,797 36% EBITDAR 59,379 (35,554) n/a Profit after Tax (64,634) (71,976) 10% Profit after Tax (RM'000) (21,763) (24,958) 13% EBITDAR Margin 13.1% -10.7% n/a Profit after Tax Marg
Slide 19: AirAsia X Updates
AirAsia X Updates First Half Ended: 30 June Jan- Jan -Jun RM million 2009 Revenue 278 EBITDAR 67.9 Core Operating Profit 4.7 EBITDAR Margin 24.5% Core Operating Profit Margin 1.7% Profitable with strong cash flow – carried 364k passengers with 69% load factor – EBITDAR of RM68 million with 25% margi
Slide 20: Balance Sheet
firffsia Balance Sheet
Slide 21: Enhancing Balance Sheet Liquidity
Enhancing Balance Sheet Liquidity Net Gearing (Net Debt/ Equity) Cash Cover (EBIT / Interest Paid) 3.8 3.7 2.6 2.7 2.5 Fuel Hedge 3.5 Unwinding 3.1 1.5 1.5 1.9 1.6 0.0 Q1- Q2- Q3- Q4- Q1- Q2- Q1- Q2- Q3- Q4- Q1- Q2- 2008 2008 2008 2008 2009 2009 2008 2008 2008 2008 2009 2009 Gearing coming down – ca
Slide 22: Objective of Capital Raising and Timeline
Objective of Capital Raising and Timeline Address investor’s concern over our high gearing ratio – it was the single largest concern of the investment community – remove share overhang Improve balance sheet liquidity – build up our “war chest” to fend off market adversities – to enable us to capture
Slide 23: Balance Sheet Outlook with RM500 million Equity Injection
Balance Sheet Outlook with RM500 million Equity Injection Net Gearing (Net Debt/ Equity) Cash Cover (EBIT / Interest Paid) strong profits 2.7 2.7 2.6 2.6 defer 15 aircraft to 2014 2.5 2.4 equity raising 2.2 2.0 2.0 1.9 2009F 2010F 2011F 2012F 2013F 2009F 2010F 2011F 2012F 2013F Cash position in exce
Slide 24: Capital Raising History of LCC
Capital Raising History of LCC US$ million 1. 328 (May ’97) 1. 279 (Nov ’00) 1. 158 (Apr ’02) 1. 564 (Jun ’04) 1. 200 (Nov ’04) Equity 2. 139 (Sep ’01) 2. 214 (Feb ’01) 2. 111 (Oct ’03) 2. 156 (Apr ’05) raising 3. 142 (Aug ’02) 3. 135 (Jul ’05) 3. 49 (Apr ’05) exercise 4. 98 (Mar ’09) 4. 90 (Mar ’09
Slide 25: Outlook
fur Asia Outlook
Slide 26: Demand Remains Robust
Demand Remains Robust % Total seats sold as of 11 August 2009 67% 65% 2008 34% 31% 24% 26% 21% 18% Aug Sep Oct Nov AirAsia Berhad 2009 2008 ∆% Seats sold in first quarter 3,147,609 2,611,556 21% Seats sold in second quarter 3,519,486 2,835,671 24% Seats sold year to date 9,005,828 7,390,498 22% 25
Slide 27: Summary
Summary Full year 2009 Guidance – passenger growth upwards of 20% – lower yields – lower operating cost Emphasis on commercial branding – competitors are slowing, we are continuing to develop our brand – recognition as a high quality airline with unmatched value for money Streamlining a young and mo
Slide 28: Appendix
firffsia Appendix
Slide 29: Fleet Composition (30 June 2009)
Fleet Composition (30 June 2009) Number of Operational Aircraft June 2009 Malaysia 44 Thailand 17 Indonesia 14 Group Total 75 Aircraft Type # Airbus A320 60 # Boeing 737-300 15 Note: 3 Boeing 737-300 is awaiting to be sold off and is excluded from the fleet calculation 28
Slide 30: Financial Data – Second Quarter
Financial Data – Second Quarter Quarter Ended: 30 June Apr- Apr-Jun Apr- Apr-Jun ∆ (%) RM'000 unless otherwise stated 2009 2008 Ticket Sales 562,323 558,020 1% Ancillary Income 95,121 50,332 89% Revenue 657,445 608,352 8% EBITDAR 271,331 149,152 82% Core Operating Profit 128,426 29,984 328% Profit/(
Slide 31: Operating Data – Second Quarter
Operating Data – Second Quarter Apr- Apr-Jun Apr- Apr-Jun Quarter Ended: 30 June ∆ (%) 2009 2008 Passengers Carried 3,519,486 2,835,671 24% ASK (million) 5,520 4,514 22% RPK (million) 4,056 3,286 23% Seat Load Factor 74.8% 75.2% -0.4 ppt Average Fare (RM) 159.8 197.7 -19% Ancillary Income per pax (R
Slide 32: Operating Data – Second Quarter
Operating Data – Second Quarter Apr- Apr-Jun Apr- Apr-Jun Quarter Ended: 30 June ∆ (%) 2009 2008 Fuel consumed ( barrels) 943,703 768,665 23% Unit fuel price ($/barrel) 60.3 142.5 -58% Average stage length (km) 1,185 1,200 -1% Number of flights 26,082 21,208 23% Aircraft Utilisation (block hours / d
Slide 33: Cost / ASK – year on year Comparison
Cost / ASK – year on year Comparison Cost Breakdown Apr-Jun Apr-Jun 2009 2008 ∆ (%) Reason (US cents / ASK) Staff 0.30 0.38 (21%) Productivity gains Fuel and Oil 1.03 2.43 (58%) Lower jet fuel price User & Station Charges 0.14 0.00 n/a Airport credit and rebates granted Maintenance and Overhaul 0.17
Slide 34: Cost Component Breakdown (Malaysia)
Cost Component Breakdown (Malaysia) Operating Expenses % Revenue Q1 2009 Q2 2009 (RM ‘000) Q1 Q2 Revenue 714,178 657,445 − Staff Cost (63,465) (59,413) (8.9%) (9.0%) − Fuel and Oil (196,011) (202,177) (27.4%) (30.8%) − User & Station Charges (49,747) (28,326) (7.0%) (4.3%) − Maintenance & Overhaul (
Slide 35: Financial Data – First Half
Financial Data – First Half First Half Ended: 30 June 1H 2009 1H 2008 ∆ (%) RM'000 unless otherwise stated Ticket Sales 1,185,253 1,052,402 13% Ancillary Income 186,369 91,271 104% Revenue 1,371,622 1,143,673 20% EBITDAR 586,171 278,345 111% Core Operating Profit 288,151 53,992 434% Profit/(Loss) af
Slide 36: Operating Data – First Half
Operating Data – First Half Jan- Jan -Jun Jan- Jan -Jun First Half Ended: 30 June ∆ (%) 2009 2008 Passengers Carried 6,667,095 5,447,227 22% ASK (million) 10,727 8,878 21% RPK (million) 7,543 6,256 21% Seat Load Factor 72.3% 73.7% -1.4 ppt Average Fare (RM) 177.8 193.2 -8% Ancillary Income per pax (
Slide 37: Operating Data – First Half
Operating Data – First Half Jan- Jan -Jun Jan- Jan -Jun First Half Ended: 30 June ∆ (%) 2009 2008 Fuel consumed ( barrels) 1,821,951 1,537,330 19% Unit fuel price ($/barrel) 60.9 126.1 -52% Average stage length (km) 1,174 1,203 -2% No. of flights 51,166 41,893 22% Aircraft utilisation (block hours/d
Slide 38: We All Miss You
Yasmin Ahmad 1958- 1958-2009 We All Miss You A great storyteller. A true Malaysian. Thank You, Yasmin.