Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q1 2012 Earnings Presentation
24 slides from Capital A Berhad's earnings presentation, 2012
Slide 1: AirAsia Berhad First Quarter 2012 Analyst Presentation
AirAsia Berhad First Quarter 2012 Analyst Presentation
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: 1Q12 Highlights
1Q12 Highlights
Slide 4: Results - Key Highlights
1Q12 Results - Key Highlights Q Q Malaysia recognises maiden profit contribution of RM2.3 mil from Thailand Revenue upside in all three operations = Malaysia - RM 117 billion up 11% y-o-y = Thailand - THB 4.87 billion up 18% y-o-y = Indonesia - IDR 911.35 billion up 17% y-o-y Strong operating profit
Slide 5: Results - Key Highlights
1Q12 Results - Key Highlights Q Thai AirAsia =" MAA recognised first profits of RM2.3 million from TAA = Thai AirAsia sets IPO price at THB3.70 per share = Issuing 1,212.5 million shares = Bookbuilding 10 times oversubscribed = Target listing 31 May 2012 on Stock Exchange of Thailand Q Expected stro
Slide 6: Financial Results - Malaysia
1Q12 - Financial Results - Malaysia RM’000 Financial performance 1Q12 1Qa11 ange Revenue 1,168,398 1,053,283 1% EBITDAR 411,202 398,648 3% Operating Profit 240,075 241,717 -1% Net Operating Profit 167,968 161,900 4% Profit after tax 172,436 171,928 0% EBITDAR margin 35% 38% -3 ppt Operating profit m
Slide 7: Financial Results - Malaysia
1Q12 - Financial Results - Malaysia Operational performance 1Q12 1aN Passengers Carried 4,821,397 4,318,334 12% Capacity 6,057,000 5,415,120 12% Load Factor 80% 80% - RPK (million) 5,546 5,108 9% ASK (million) 6,907 6,374 8% Average Fare (RM) 177 164 7% RASK (sen) 16.92 16.53 2% CASK (sen) 13.44 12.
Slide 8: Financial Results - Thailand
1Q12 - Financial Results - Thailand Revenue EBITDAR Operating Profit Profit after tax Passenger Carried Capacity Load Factor Average Fare (THB) RASK (THB) CASK (THB) CASK ex-fuel (THB) 1Q12 4,868,109 1,399,609 628,832 621,641 2,131,397 2,459,160 87% 1,904 1.92 1.67 0.93 1QN1 4,137,102 18% 1,516,302
Slide 9: Financial Results - Indonesia
1Q12 - Financial Results - Indonesia 1Q12 1011 Revenue 911,345 779,048 17% EBITDAR 165,795 171,375 -3% Operating Profit 15,452 8,809 75% Profit after tax (36,654) 31,943 -215% Passenger Carried 1,273,362 1,093,643 16% Capacity 1,655,280 1,388,588 19% Load Factor 77% 79% - 2 ppt Average Fare (IDR) 57
Slide 10: Fleet Strategy
Fleet Strategy Q Fleet rollout next 15 years: > e242 24 20 rm 2 4a m A320neo 15 i: wi m A320 2012 2013 2014 2015 2016 2017 201€ 2019 g092¢ 2021 202: 202: 202. 202! 2026 101 Airbus A320 to date : MAA 57, TAA - 24, IAA -18, PAA -2 Aircraft deliveries brought forward = One aircraft brought forward to 2
Slide 11: Net Gearing & Net Debt
1Q12 - Net Gearing & Net Debt 3.50 oe 2.62 25 2.27 175 ll oS —eNet Gearing Je a wNet Debt 1.50 1.41 1.26 +—_——_+—__, 2Q2009 3Q2009 4Q2009 1Q2010 “22010 "392010 “402010. 192011 2@2011 III * 3Q20n 4Q2011 1Q2012 Q~ Gearing down to 1.26 times from 1.41 g-o-q Q~ = Cash position of RM2.32 billion includin
Slide 12: 60.0 50.0 39.6 40.0 40.0 30.0 20.0 10.0 0.0 1Q12 1Q11
60.0 50.0 39.6 40.0 40.0 30.0 20.0 10.0 0.0 1Q12 1Q11
Slide 13: Hedging Updates
Hedging Updates Q Fuel hedged up to:- " Up to 40% for 2Q12 via fixed swap Jet Kero @US$122/bbl " Up to 12% for July via fixed swap Jet Kero @US$124.9/bb! " Up to 27% for 2H12 via fixed swap Brent @US$116/bbl Hedging strategy to match forward bookings Foreign Exchange " Foreign currency hedge up to 6
Slide 14: Joint Ventures Updates and Growth
Joint Ventures Updates and Growth Upside Joint ventures Details Philippines’ = Began operations in March AirAsia = Operating out of Clark = Launched routes to Davao, Kalibo and Puerto Princesa = Launching Clark to Kuala Lumpur in June 2012 AirAsia Japan AirAsia Expedia BIG (Loyalty programme) AirAsi
Slide 15: vam firfisia
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Slide 16: Appendix: 1Q12 Financials and Operating Statistics
Appendix 1Q12 Financials and Operating Statistics
Slide 17: Financial Results - Malaysia
1Q12 - Financial Results - Malaysia Financial performance 1a1N1 Change Revenue 1,168,398 1,053,283 1% EBITDAR 411,202 398,648 3% Operating Profit 240,075 241,717 -1% Net Operating Profit 167,968 161,900 4% | | | | | | Profit after tax | 172,436 | 171,928 | | 0% EBITDAR margin 35% 38% -3 ppt Operatin
Slide 18: CASK - Malaysia
1Q12 - CASK - Malaysia Cost / ASK (US cents) 1Q12 1a Staff Costs (0.72) (0.61) Depreciation (0.62) (0.73) Aircraft Fuel Expense (2.11) (1.95) Aircraft Operating lease expense (0.19) (0.08) Maintenance, Overhaul (0.13) (0.13) User Charges and other related expense (0.52) (0.65) Travel and tour operat
Slide 19: Financial Results - Thailand
1Q12 - Financial Results - Thailand THB’00O Financial performance aN Revenue 4,868,109 4,137,102 18% EBITDAR | 1399609 | 1516302 | -8% Operating Profit | 628832 | 845,256 | -26% Profit after tax | 621,641 | 806669 | -23% EBITDAR margin | 29% | 37% | — -8 ppt ae profit margin 13% | 20% | -7 pot Opera
Slide 20: CASK - Thailand
1Q12 - CASK - Thailand Cost / ASK (US cents) 1Q12 Staff Costs (0.59) Depreciation (0.02) Aircraft Fuel Expense (2.40) (2.08) Aircraft Operating lease expense (0.97) (0.95) Maintenance, Overhaul (0.46) (0.39) User Charges and other related expense (0.81) (0.78) Travel and tour operations expenses - -
Slide 21: Financial Results - Indonesia
1Q12 - Financial Results - Indonesia IDR’ million Financial performance 1Q12 1QN Change Revenue 911,345 779,048 17% EBITDAR 165,795 171,375 -3% Operating Profit 15,452 8,809 75% Profit after tax (36,654) 31,943 -215% EBITDAR margin 18% 22% - Appt ean profit margin 2% 1% I ppt Operational performance
Slide 22: CASK - Indonesia
1Q12 - CASK - Indonesia Cost / ASK (US cents) 1Q12 Staff Costs (0.50) Depreciation (0.12) Aircraft Fuel Expense (2.34) (1.90) Aircraft Operating lease expense (0.67) (0.89) Maintenance, Overhaul (0.40) (0.43) User Charges and other related expense (0.52) (0.53) Travel and tour operations expenses -
Slide 23: Accounting for TAA and IAA
Accounting for TAA and IAA Overview Q Q Q Q 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
Slide 24: Accounting for TAA and IAA (cont')
Accounting for TAA and IAA (cont’) Equity Accounting Q 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 investor