Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2010 Earnings Presentation
23 slides from Capital A Berhad's earnings presentation, Nov 25, 2010
Slide 1: Third Quarter 2010 Results
Third Quarter 2010 Results 25 November 2010
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: 3rd Quarter 2010 Outstanding Performance Group wide
3rd Quarter 2010 Outstanding Performance Group wide Exceeding Expectations Revenue of RM988 million y-o-y recording 34% y-o-y growth Profit after tax of RM327 million, up 152% y-o-y Passenger volume up 12% y-o-y, load factor hitting 78% Thailand on track Revenue of THB2,874 million recording 46% y-o
Slide 4: 3rd Quarter 2010 - AirAsia Group
3rd Quarter 2010 - AirAsia Group Quarter Ended: 30 September Malaysia Indonesia 2010 Thai AirAsia Total AirAsia AirAsia RM'000 unless otherwise stated Revenue 987,558 286,777 274,956 1,549,291 EBITDAR 444,207 99,594 102,515 646,316 EBITDA 430,850 41,116 61,608 533,574 EBIT 295,894 37,690 60,368 393,
Slide 5: Financial Results - MAA, TAA and IAA
Financial Results - MAA, TAA and IAA MAA TAA IAA Quarter Ended: 30 September 2010 3Q2010 3Q2009 Change 3Q2010 3Q2009 Change 3Q2010 3Q2009 Change (RM’000) (RM’000) y-o-y (THB’000) (THB’000) y-o-y (IDR mil) (IDR mil) y-o-y Revenue 987,558 739,668 34% 2,873,505 1,973,768 46% 784,174 600,216 31% EBITDAR
Slide 6: Financial Results - MAA, TAA and IAA (9 months ending)
Financial Results - MAA, TAA and IAA (9 months ending) MAA TAA IAA 9 Months Ended: 30 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months September 2010 Change Change Change 2010 2009 2010 2009 2010 2009 y-o-y y-o-y y-o-y (RM’000) (RM’000) (THB’000) (THB’000) (IDR’mil) (IDR’mil) Revenue 2,806,255
Slide 7: Operating Statistics - MAA, TAA and IAA
Operating Statistics - MAA, TAA and IAA MAA TAA IAA Quarter Ended: 30 September 2010 Change Change Change 3Q2010 3Q2009 3Q2010 3Q2009 3Q2010 3Q2009 y-o-y y-o-y y-o-y ASK 6,056 5.449 11% 1,868 1,598 17% 1,760 1.568 12% RPK 4,773 3,769 27% 1,440 1,237 16% 1,433 1,205 19% Rev/ASK (sen/ 16.31 12.19 34%
Slide 8: Group Ancillary Income
Group Ancillary Income Ancillary Income per pax up y-o-y across the Group: Malaysia : ↑23% Thailand : ↑ 81% Indonesia: ↑ 31% Malaysia (RM) n Baggage fees and AirAsia Cargo significant contributors to Ancillary income New addition of AirAsia Megastore contributes to top line revenue growth 7
Slide 9: Gearing & Cash Balances
Gearing & Cash Balances AirAsia 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 Berhad Net Debt 6,726 6,688 6,862 6,248 6,728 6,705 (RM’mil) Net 3.50 2.60 2.62 2.25 2.27 2.02 Gearing Further reduction in gearing to 2.02 times Achieved cash and cash equivalents close to RM1 billion Cash balance of RM935 mi
Slide 10: Fleet Development
Fleet Development AirAsia Group Net Fleet Size (calendar year) AirAsia’s Group Delivery Schedule Delivery Month No. of Deployments planes 2011 8 4 – Malaysia (Announced) 2 – Thailand 2 – Indonesia 2012 12-16 5 – Malaysia (In-discussions) 3 - Thailand 4 – Indonesia Total delivery of 16 Airbus A320 ai
Slide 11: Attractive Valuations among airlines
Attractive Valuations among airlines (as at 23 November 2010) Market Latest 9 months Cash Equivalent P/E EV/EBITDA Capitalisation (USD) Profit after tax(USD) Latest filing (in billion) (in million) (USD) (in million) Low Cost Carriers AirAsia 2.27 276.5 296.8 10.04 12.49 Ryanair Holdings 7.81 612.2
Slide 12: Attractive Valuations among Malaysian companies
Attractive Valuations among Malaysian companies (as at 23 November 2010) Market Latest 6 months Cash Equivalent P/E EV/EBITDA Capitalisation (RM) Net Income (RM) Latest filing (RM) (in billion) (in million) (in million) AirAsia 2.27 400,400 858.09 10.04 12.49 IJM Corporation 7.62 1,852.56 1,352.75 1
Slide 13: Moving into 2011
Moving into 2011 12
Slide 14: Forward Bookings
Forward Bookings Load factor as at 23 November 2010 Malaysia Indonesia 45%45% 43% 48% 44% 28% 35% 34% 26% 31% 23% 24%24% 2008-2009 2008-2009 21% 23% 2009-2010 2009-2010 14% 17% 2010-2011 2010-2011 10% December January February December January February Thailand Increase in demand on air travel 44% F
Slide 15: Moving into 2011 - Malaysia and Thailand
Moving into 2011 MALAYSIA Strengthening Domestic Operations Introduction of Kuching as the second hub in East Malaysia Increasing frequencies as key East Malaysian routes performing well Adding capacity from KUL to Kota Kinabalu, Kuching, Miri and Sibu Dominating market share Increased frequencies o
Slide 16: Moving into 2011 - Indonesia
Moving into 2011 INDONESIA Continue focusing on International routes Strengthen existing hub like Bali and Surabaya Increasing frequencies on profitable routes from Bali Launch of second Australian destination from Bali – Darwin in December Opening of Medan as Indonesia’s 5th hub To launch internati
Slide 17: Moving into 2011 - Groupwide
Moving into 2011 - Groupwide Continue to breed in-house pilots via AirAsia Academy to match future capacity needs no pilot shortages Value creation via new joint ventures Monetising other AirAsia business units AirAsia Go – to benefit from AirAsia brand and IT penetration rate Academy – to be centre
Slide 18: Summary
Summary MALAYSIA POSTED 34% Y-O-Y GROWTH IN REVENUE TO RM988 MILLION THAILAND’S REVENUE GROWTH UP 46% Y-O-Y AS IT GEARS UP FOR ITS STRONGEST QUARTER INDONESIA’S COMING OFF A PHENOMENAL PERFORMANCE WITH 31% Y-O-Y REVENUE GROWTH NET GEARING DECREASED BY 11% TO 2.02 TIMES DISCLOSURE OF BALANCE SHEET FO
Slide 19: Thank you
Thank you 18
Slide 20: Appendix
Appendix 19
Slide 21: 3Q10 Cost Breakdown for AirAsia Group
Appendix - 3Q10 Cost Breakdown for AirAsia Group Quarter ended: 30 September 2010 MAA TAA IAA Cost / ASK (US cents) Staff Costs 0.44 0.41 0.46 Fuel and Oil 1.52 1.59 1.66 User Charges and Station Expenses 0.31 0.52 0.25 Maintenance and Overhaul 0.10 0.29 0.41 Aircraft related cost 0.07 0.99 0.74 Dep
Slide 22: Accounting for TAA and IAA
Accounting for TAA and IAA Overview 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 jointly
Slide 23: Accounting for TAA and IAA (continued)
Accounting for TAA and IAA (continued) Equity Accounting 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 investo