Air Asia Co. Ltd. · TWSE:2630
Air Asia — 1H22 Earnings Presentation
34 slides from Air Asia's earnings presentation, Aug 24, 2022
Slide 1: 2022 Investor Conference
2630 AIA ASIA AIR ASIA Company Limited Company Limited 2022 Investor Conference (liniddula Hidcallt ill
Slide 2: Disclaimer
Disclaimer The information contained in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, and business forecasts, is based on information derived from internal corporate data and external economic developments as a whole.
Slide 3: Agenda
Agenda Financial Results Commercial Business Outlook Military Business Outlook
Slide 4: Financial Results
Financial Results
Slide 5: Statements of Comprehensive Income
Statements of Comprehensive Income (In NT$ thousands) 1H22 Year 2021 Items 1H22 1H21 over Year 2021 Year 2020 over 1H21 Year 2020 Net Revenue 1,886,872 1,916,392 (29,520) 3,884,970 3,895,091 (10,121) Operating Costs 1,782,325 1,816,623 (34,298) 3,656,895 3,704,355 (47,460) Gross Margin(%) 5.5% 5.2%
Slide 6: Revenue Analysis
Revenue Analysis 1H2021 Revenue 1H2022 Revenue Commercial Commercial Aircraft Aircraft 11.2% Helicopter 8.4% Helicopter 23.0% 23.2% Military Military Aircraft Aircraft 68.6% 65.6% Commercial Aircraft Military Aircraft Helicopter 250,000 1,400,000 Growth Rate -6% 500,000 Growth Rate -1% Growth Rate 3
Slide 7: Revenue Analysis
Revenue Analysis Year 2020 Revenue Year 2021 Revenue Commercial Commercial Aircraft Aircraft 6.6% 8.6% Helicopter 16.3% Helicopter 26.0% Military Military Aircraft Aircraft 77.2% 65.4% Commercial Aircraft Military Aircraft Helicopter 400,000 3,500,000 1,200,000 Growth Rate 31% Growth Rate -15% Growt
Slide 8: Balance Sheets & Key Indices
Balance Sheets & Key Indices (In NT$ thousands) Items 1H22 1H21 Year 2021 Year 2020 amount % amount % amount % amount % Cash and cash equivalents 568,641 12 309,654 7 318,848 7 158,454 4 Contract assets 900,055 19 863,095 18 762,733 16 730,523 17 Accounts Receivable 1,092,590 23 1,382,023 29 1,404,3
Slide 9: Convertible Bond Condition
Convertible Bond Condition Air Asia Company Ltd. 1st Air Asia Company Ltd. 2nd Items Domestic Unsecured Convertible Domestic Unsecured Convertible Bond Bonds Tenor 2019/07/09~2022/07/09 2019/07/10~2024/07/10 Amount NT$ 200 millions (2,000 Lots) NT$ 300 millions (3,000 Lots) Coupon Rate 0% 0% Convers
Slide 10: Commercial Business Outlook
Commercial Business Outlook
Slide 11: Commercial Market Outline
Commercial Market Outline Recovery on aviation industry There are 25,500 A/C in service in 2022, more than 23,000 in 2021 and 13,000 in 2020 It estimated to be 50% narrow body A/C and 25% regional/propeller A/C de-preserve to back to service in 2022 COVID-19 impact Every government support
Slide 12: Commercial Market Outline
Commercial Market Outline A/C utilization change becomes big impact of MRO Record number of retirements in 2020, with almost 1,300 A/C estimated to have left service permanently. Raft of premature retirements have affected the MRO industry Aircraft manufacturers are making a strong effort to i
Slide 13: Commercial Market Outline
Commercial Market Outline A/C utilization change becomes big impact of MRO (Cont.) Note: Oliver Wyman “GLOBAL FLEET AND MRO MARKET FORECAST 2022-2032” https://www.oliverwyman.com/our-expertise/insights/2022/feb/global-fleet-and-mro-market-forecast-2022-2032.html
Slide 14: Commercial Market Outline
Commercial Market Outline Passenger market has been hit and stagnated because of the pandemic. Cargo market, by contrast, has grown significantly. Current cargo customers such as S.F. Express launch new route and increase their scheduled flights during the epidemic. The endeavor on developing new
Slide 15: Contract Summary
Contract Summary Repair Availability Parking JEJU Air BBAM Singapore Peach Aviation SMBC Aviation Bamboo Airways Air Bikini Hanseo University Line Maintenance National Airborne Service Corps, Ministry of the Interior China Central Longhao King Air 200 maintenance Airlines pro
Slide 16: Marketing Strategy
Marketing Strategy Consolidate customers with long-term maintenance contracts Cooperate with Leasing Company with redelivery/delivery check Find more domestic customers Add new capability of aircraft type Enhance customer satisfaction and the maintenance performance with continuous busines
Slide 17: Current Market/Customers
Current Market/Customers Consolidate customers with long-term maintenance contracts North East Asia Japan: Peach Aviation South Korea: T'way Airlines, JEJU Air, Asiana Airlines, Hanseo University South East Asia Vietnam: VietJet Air, Bamboo Airways Thailand: Nok Air Cambodia: Cambodi
Slide 18: Current Market/Customers
Current Market/Customers Cooperate with Leasing Company with redelivery/delivery check Delivery check accomplished for Aercap & SMBC BBAM arrange A/C parking in AACL, and continuously assign AACL to perform delivery check Keep relationship and collaboration with top 25 Leasing Companies Fi
Slide 19: New Capability Current Market/Customers
New Capability Current Market/Customers ATR 42 & 72 Acquired CAA Taiwan, FAA, MOLIT certificate. End of 2022 will acquire JCAB rating GTA signed with Korean customer – Hi Air, and to be signed with Japanese customer Developing South East Asia customer, ex. Indonesia and Philippines Work wi
Slide 20: Line Maintenance Current Market/Customers
Line Maintenance Current Market/Customers Enhance customer satisfaction and the maintenance performance with continuous business promotion On-call and manpower support are two main services at present, suggest the current customers to amend the service to full technical with certificate of relea
Slide 21: Line Maintenance Current Market/Customers
Line Maintenance Current Market/Customers Expand markets proactively to maximize the manpower utilization New business in South East Asia AirAsia Berhad and Thai Lion Air have added A330 A/C service into Line Maintenance contracts this year A Vietnamese airline planning to operate the flight
Slide 22: Sales Growth Tactics
Sales Growth Tactics Bottleneck and solution in 2022 International carriers cancel/postpone maintenance plan or send A/C to local MRO due to COVID-19 Seeking for delivery/redelivery check after long parking. Through high revenue of single delivery check to make up the gap of declining C Check
Slide 23: Sales Growth Tactics
Sales Growth Tactics Short-Term Consolidate domestic customers. Explore delivery/redelivery check with Leasing Companies and Airlines Mid-Term Increase customers. Expand serviceable A/C type. Establish authorized maintenance center of HondaJet Long-Term Build various A/C maintenance capabiliti
Slide 24: A Customer Oriented Culture
A Customer Oriented Culture Customer Oriented Culture
Slide 25: Military Business Outlook
Military Business Outlook
Slide 26: Domestic military aircraft market
Domestic military aircraft market 2022 2023 2024 2025 Short-term Mid-term Long-term Army OH-58 Strategic Army TH-67 Strategic Fleet Helicopter Maintenance Maintenance Project Project Complete Navy Government Owned S-70C rotor blade overhaul Plan for the UH-60 APU of Contractor Operated capability th
Slide 27: Contract Summary
Contract Summary Military Aircraft Helicopter OH-58D Helicopter maintenance project Government Owned Contractor Operated Duration:2017-2024 (GOCO) program for the Air Force 2nd Amount: NT$1.6 billions Logistics Command Duration:2018-2022 TH-67 Helicopter maintenance project Amount: NT$13.3 billions
Slide 28: Military Aircraft
Military Aircraft Component Division Taichung (GOCO Project) The maintenance and procurement materials have been replenished one after another, supporting the delivery of parts from the factory to meet the annual maintenance needs of the Air Force. The revenue will continue to grow in the second
Slide 29: Military Aircraft
Military Aircraft Aircraft Maintenance Division Pingtung (GOCO Project) All types of aircraft perform D-level maintenance operations according to the military‘s annual plan, and progresses to strive unplanned work, and cooperate with the military to perform TCTO maintenance and special tasks. In
Slide 30: Military Aircraft
Military Aircraft Aircraft Maintenance Division Songshan Obtained a new contract for the maintenance of administrative planes and inspection machines (2022 ~ 2026). Adhering to the past contracting experience, it has carried out various repair and maintenance operations and quality management to
Slide 31: Aircraft Painting Factory
Aircraft Painting Factory It has a professional environmental control spraying booth in Pingtung factory and has the ability to spray the whole aircraft for military and civilian. Customization and pattern design are available with customers requirement and authorization. The exclusive pattern spr
Slide 32: Helicopter
Helicopter In the second half of 2022, we continuously integrate and stabilize the market by performing our contracts of TH-67, OH- 58 and CH-47 fleet maintenance for the military and UH-60M fleet maintenance & management for National Airborne Service Corps (NASC). We are exclusively authorized
Slide 33: Helicopter
Helicopter According to the policy of national defense independence (defense autonomy), capabilities for main rotor blades of all types of helicopters are scheduled to establish. Strategic alliance with ABS to explore business opportunities through OEM technology transfer. 註：資料來源 Prnewswire Avia
Slide 34: Thank you
2630 AIA ASIA AIR ASIA Company Limited Company Limited Thank you lille ih 4 call il