Air Asia Co. Ltd. · TWSE:2630
Air Asia — 1H 2023 Earnings Presentation
38 slides from Air Asia's earnings presentation, 2023
Slide 1: AIR ASIA Limited Company 2023 Investor Conference
AIR ASIA Limited Company 2023 Investor Conference
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) Without Employee stock option & Loss valuation of Asset 1E23 1E23 Items 1H23 1H22 over 1H23 over 1E22 1E22 Net Revenue 2,390,373 1,886,872 503,501 2,402,624 515,752 Operating Costs 2,278,611 1,782,325 496,286 2,241,132 458,807 Gross Margin(%) 4.7
Slide 6: Revenue Analysis
Revenue Analysis 1H2022 Revenue 1H2023 Revenue Commercial Commercial Aircraft Aircraft Helicopter 11.4% 11.2% 17.5% Helicopter 23.2% Military Military Aircraft Aircraft 65.6% 71.1% Helicopter Commercial Aircraft Military Aircraft 500,000 Growth Rate -4% 300,000 Growth Rate 30% 2,000,000 Growth Rate
Slide 7: Balance Sheets & Key Indices
Balance Sheets & Key Indices (In NT$ thousands) Items 1H23 1H22 Year 2022 Year 2021 amount % amount % amount % amount % Cash and cash equivalents 231,697 4 568,641 12 252,947 5 318,848 7 Contract assets 1,116,539 20 900,055 19 913,851 19 762,733 16 Accounts Receivable 1,684,816 31 1,092,590 22 1,208
Slide 8: Commercial Business Outlook
Commercial Business Outlook
Slide 9: Market Overview-Airline
Market Overview-Airline Aircraft amount on the duty is approaching pre-pandemic peaks There are 27,400 aircrafts on the duty in the beginning of 2023, which is approaching the pre-pandemic peaks (28,000 aircrafts) in January 2020 High usage of narrow-body aircraft Domestic routes have resume
Slide 10: Market Overview-Airline
Market Overview-Airline Replacement of the old aircraft by new-generation aircraft Outstanding performance: Boeing 737 MAX and Airbus A320neo has better performance and lower fuel consumption than the old aircraft Graduate retirement of the old aircraft: Airlines phase out Boeing 737NG and Air
Slide 11: Market Overview-Airline
Market Overview-Airline Prospects for the aviation industry As the global pandemic is gradually under control, the aviation industry is expected to grow in 2023 Demand for international flights has not yet fully recovered, but is expected to increase in the coming years as travel demand recove
Slide 12: Market Overview-MRO
Market Overview-MRO Maintenance demands increase rapidly ,the MRO (Maintenance, Repair, and Overhaul) industry turns to seller's market Due to economy recovery of Asia-Pacific, passenger and flights in 2023 are gradually returning to pre-pandemic levels The needs for narrow-body aircraft is in
Slide 13: Market Overview-MRO
Market Overview-MRO Maintenance demands increase rapidly ,the MRO (Maintenance, Repair, and Overhaul) industry turns to seller's market (Cont.) In 1st half of 2023, the revenue of commercial unit of Air Asia Company Listed (AACL) has grown 30% more than 1st half of 2022. It indicates that the av
Slide 14: Market Overview-MRO
Market Overview-MRO 2023-2032 MRO Market Forecast Note: Oliver Wyman “GLOBAL FLEET AND MRO MARKET FORECAST 2023-2033” https://www.oliverwyman.com/our-expertise/insights/2023/feb/global-fleet-and-mro-market-forecast-2023-2033.html
Slide 15: Market Overview-Line
Market Overview-Line International flights has generally resuming the routes to Taiwan after the relief of the pandemic since December 2022, and the recovery of aviation industry has also reflected in Line Maintenance. Accordingly, the number of served flights has increased from 200 flights in Jan
Slide 16: Market Overview-Line
Market Overview-Line Although the closure of borders during the pandemic results in the obstacles to develop business abroad, Line Maintenance Department has still endeavored customers to sign the contracts by the effective sharing of customer and application to information equipment that leads th
Slide 17: Contract Summary
Contract Summary Base Maintenance + Parking Line Maintenance AirAsia Group AirAsia Group Jeju Air Thai Lion Group Peach Aviation Vietjet Group T’way Airlines S.F. Airlines Vietjet Air Bamboo Airways, Tiger Air APEX Royal Air Philippines Mandarin Airlines National Airb
Slide 18: Marketing Strategy
Marketing Strategy Consolidate customers with long-term maintenance contracts Cooperate with Leasing Company with redelivery/delivery check Exploring new business opportunities Add new capability of aircraft type Enhance customer satisfaction and the maintenance performance with continuous
Slide 19: Market Development Status
Market Development Status Long-Term cooperative foreign customers (with fleet) USA Hawaii: Aloha Air Cargo, Transair Alaska: Northern Air Cargo Northeast Asia Japan: Peach Aviation, JTA, JAC, Toki air South Korea: T’way Airlines, JEJU Air, Hanseo University Southeast Asia Philippin
Slide 20: Market Development Status
Market Development Status Cooperate with Leasing Company with redelivery/delivery check Aercap continues sending aircraft for parking and perform de- registration/re-registration tasks GTA-signing with Aercap, Air Castle, BBAM and Avolon Keep relationship and collaboration with top 25 Leasin
Slide 21: Development of the New Capability
Development of the New Capability ATR 42 & 72 Acquired CAA Taiwan, FAA, MOLIT, JCAB 1 aircraft maintenance completed for Mandarin Airlines and JAC Developing the Northeast Asia market. The new partnership established with JAC, Toki Air (Japan), Sum Air (South Korea), also engaging actively w
Slide 22: Line Maintenance Current Market/Customers
Line Maintenance Current Market/Customers Improve customer satisfaction, performance and promotion At present, our contract is still based on " ON CALL" and manpower support. Some customers are satisfy with our service, so their turn to have " CRS " in the contract In the future, we will conti
Slide 23: Line Maintenance Current Market/Customers
Line Maintenance Current Market/Customers Expand market and maximize the manpower We have made new gains in the Asian market, so we should recruit people appropriately, and plan the use of manpower Bamboo Airways had signed an agreement of "CRS" in TPE and KHH from March Vietjet and Thai Vie
Slide 24: Sales Growth Tactics
Sales Growth Tactics Business strategy of 2023 Seeking the opportunity of the heavy checks for the large number of aircraft which stored during the pandemic to increase revenue Enhancing the cooperation with the leasing company, expanding the business scope upon other aviation by aircraft park
Slide 25: Sales Growth Tactics
Sales Growth Tactics Short-Term Expanding the capacity, maintaining quality and focusing on heavy checks business Mid-Term Expanding the customer base and broaden the range of supported aircraft models Long-Term Establish diverse aircraft maintenance capabilities, create unique value propositi
Slide 26: Commercial Business Recovery
Commercial Business Recovery 350,000 100% 300,000 86% 250,000 75% 61% 200,000 56% 150,000 100,000 50,000 - NT$ Thousands 2019H1 2020H1 2021H1 2022H1 2023H1
Slide 27: A Customer Oriented Culture
A Customer Oriented Culture Customer Oriented Culture
Slide 28: Military Business Outlook
Military Business Outlook
Slide 29: Main Government Business
Main Government Business Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Contract GOCO 5Y NT$13.36B 5Y NT$13.36B GOCO 4Y NT$1.89B 5Y NT$1.76B 3Y NT$1.06B (Songshan) OH-58D 7Y NT$1.63B TH-67 7Y NT$1.41B 8Y NT$1.81B CH-47SD 7Y NT$1.4B NASC 5Y NT$1.05B 2Y NT$0.42B U
Slide 30: Helicopter
Helicopter We constantly maintain and secure our current markets with performance of our contracts on 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 by Breeze-Eastern (BE)
Slide 31: Helicopter
Helicopter To strive for upgrade programs on various types of aircraft, e.g., wiring harness replacement for MD500 helicopters. We are scheduling to complete establishments of main rotor blades for all types of helicopters, in compliance with Self-Reliant Defense policy.
Slide 32: Military Aircraft
Military Aircraft Component Division Taichung (GOCO Project) Accessories Factory(GOCO Project) : The 2nd ALC GOCO contract renewal (2023~2027) has been completed. According to the successive supply of materials and the delivery schedule, the delivery schedule of the repair parts will be adjusted
Slide 33: Military Aircraft
Military Aircraft Aircraft Maintenance Division Pingtung (GOCO Project) Pingtung Plant (GOCO Project)： Various types of aircraft enter the factory according to the military's annual plan to perform Depot Level Maintenance operations, and related work progress is promoted to stabilize. Actively s
Slide 34: Military Aircraft
Military Aircraft Aircraft Maintenance Division Songshan Songshan Plant： Has obtained a new maintenance contract of the administrative planes and radio check planes (2022~2026). Adheres to past contracting experience, implements various repair and maintenance operations and quality management, a
Slide 35: Military Aircraft
Military Aircraft Engine and Accessory Factory Carry out the maintenance case of the Army's 4 types helicopters and GOCO, Air Force Academy maintenance case and Songshan case, continuing control the material arrival schedule and flexibly adjust the maintenance arrangement to ensure completed on
Slide 36: Market Analysis of Commercial Specification UAVs for Military Use
Market Analysis of Commercial Specification UAVs for Military Use Specification Services Quantity Budget Year Budget/Each Vendors for Selection ROCAF 315 NT$284.96M 2024 NT$905K • Thunder Tiger Corp. • GEOSAT Aerospace & Small UAV Technology Inc. • Coretronic Intelligent ROCA 320 NT$274.78M 2024~202
Slide 37: TADTE 2023
TADTE 2023 AIA ASIA Company Limited
Slide 38: Thank you
2630 AIA ASIA AIR ASIA Company Limited Company Limited Thank you ere i 4 l ult sill
AIR ASIA Limited Company — 1H 2023 Earnings Presentation on 6ix