Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q4 2009 Earnings Presentation
25 slides from Capital A Berhad's earnings presentation, Feb 25, 2010
Slide 1: Strong Performance Amid Turbulent Skies
Strong Performance Amid Turbulent Skies Fourth Quarter 2009 Results 25 February 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: Key Highlights for 2009
Key Highlights for 2009 Strong results given challenging operating environment – core operating profit RM447 million – sustained strong passenger growth of 21% to 14.2 million Thailand has recovered, produced core operating profit of THB148 million – market recovery with buoyant demand and high
Slide 4: Malaysia: 2009 in a Snapshot
Malaysia: 2009 in a Snapshot Year Ended: 31 December Jan-Dec 2008 Change Jan-Dec 2009 RM'000 unless otherwise stated (restated) y-o-y Revenue 3,178,854 2,851,786 11% EBITDAR 1,324,234 833,819 59% Core Operating Profit 447,453 180,481 148% Profit after Tax 549,054 (496,563) n/a Core Operating Profit
Slide 5: Thailand: 2009 in a Snapshot
Thailand: 2009 in a Snapshot Î Produced core operating profit of THB334 million (RM34.1 million) AirAsia Thailand Cost / ASK Thailand is Back to Normal Stable cost Airbus A320 replacement into fleet is Underlying demand has recovered to – enhancing efficiency normal levels – Increasing capacity
Slide 6: Indonesia: 2009 in a Snapshot
Indonesia: 2009 in a Snapshot Î Platform for sustained profitability has been established Indonesia AirAsia Cost / ASK Demand is Stable Airbus A320 replacement into fleet is Access to international routes has – enhancing efficiency significantly improved operations – increasing capacity – improv
Slide 7: AirAsia X: 2009 in a Snapshot
AirAsia X: 2009 in a Snapshot Î The long haul, low cost model is proven successful Passengers Carried Revenue (RM million) Strong level of acceptance of AAX First quarter 2010 looking positive services as seen by high passenger with strong loads and high yields growth and load factors Produced
Slide 8: Ancillary Income
Ancillary Income AirAsia Ancillary Income Growth Generating Revenue Through Innovation Ancillary Income (RM million) Spend / pax % Revenue 29.1 500 30. 0 450 25. 0 400 19.9 415 350 20. 0 300 13.9 250 15. 0 200 235 Pick A Seat 10. 0 150 100 136 5. 0 50 7.1% 8.2% 13.1% 0 0. 0 2007 2008 2009 Ancillar
Slide 9: Route Network Constantly Growing
Route Network Constantly Growing AirAsia Group Route Network AirAsia Group Routes 136 104 75 65 52 26 6 11 2002 2003 2004 2005 2006 2007 2008 NOW Note: Years represent December year end Number of routes includes AirAsia X services Biggest LCC in Asia Operations across three countries (Malaysia, Th
Slide 10: Lowest Cost Airline in the World
Lowest Cost Airline in the World Cost / AS K vs. S tage Length 8 .0 GO L EasyJe t W e st Je t A irT ran COST / ASK (US cents) 6 .0 So ut hW e st V irginBlue Je t Blue Ryanair 4 .0 3 .9 0 3 .3 4 Tig er 2.94 2 .0 0 .0 500 1 000 1500 2000 S t ag e leng t h (km) Source: Company annual reports, Tiger Air
Slide 11: Result Commentary - Full Year 2009
Result Commentary - Full Year 2009
Slide 12: Summary of 12 Months Result
Summary of 12 Months Result Full Year Ended: 31 December Jan-Dec 2008 Change Jan-Dec 2009 RM'000 unless otherwise stated (restated) y-o-y Revenue 3,178,854 2,851,786 11% Core Operating Profit 447,453 180,481 148% Profit after Tax 549,054 (496,563) n/a Core Operating Profit Margin 14.1% 6.3% 7.7 ppt
Slide 13: Balance Sheet
Balance Sheet Net Gearing (Net Debt/ Equity) 3.8 3.7 Capital 3.5 Raising 3.1 2.6 2.6 1.9 1.6 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Cash position of RM748 million – reduced net gearing level to 2.6 times Note: Calculation includes aircraft loans for associates 12
Slide 14: Result Commentary - Fourth Quarter 2009
Result Commentary - Fourth Quarter 2009
Slide 15: Capacity Rollout Matches Demand
Capacity Rollout Matches Demand Capacity Rollout (ASK million) Revenue / ASK (sen) 5,863 +17% Î Average fare drop is offset by higher ancillary income contribution 5,006 Î Average stage length reduced by 3% -18% Q4-2008 Q4-2009 18 17.4 Load Factor (%) 17 16 14.2 15 +1 ppt 14 78.4% 79.4% 13 12 11 10
Slide 16: Outlook
Hr. rsUr.comt Outlook
Slide 17: Aircraft Delivery Schedule
Aircraft Delivery Schedule Airbus A320 Delivery Schedule # Aircraft Quarter 1 (Jan – Mar) 0 Quarter 2 (Apr – Jun) 6 Quarter 3 (Jun – Sep) 6 Quarter 4 (Oct – Dec) 4 Total Airbus A320 Delivery 16 Note: Deployment schedule for the AirAsia Group Taking delivery of 16 Airbus A320 aircraft Aircraft de
Slide 18: Realigned Fleet Schedule to Achieve Optimal Growth and Operational Requirements
Realigned Fleet Schedule to Achieve Optimal Growth and Operational Requirements AirAsia Group Net Fleet Size Capacity (ASK) Growth Projection Boeing 737-300 Malaysia Thailand Indonesia Airbus A320 23% 20% 21% 14 173 175 149 11% 12% 125 9% 101 86 70 2009 2010E 2011E 2012E 2013E 2014E 2015E 2010 2011
Slide 19: Network Expansion Plan
Network Expansion Plan Launching between 9-12 new routes – combination of new routes and cross linking from existing bases Emphasis on India – Kuala Lumpur to Bangalore, Hyderabad and Chennai – Bangkok to Kolkata and Delhi – Penang to Chennai Cross connecting from existing bases – Kota Kinabal
Slide 20: Demand Remains Robust
Demand Remains Robust % Total seats sold as of 22 February 2009 72% 64% 2008 43% 41% 27% 18% 19% 11% Feb Mar Apr May Underlying demand remains positive – forward booking numbers ahead than last year – load factors ahead than the same period last year 19
Slide 21: Summary
Summary AirAsia is well placed to take advantage of economic recovery – passenger growth momentum is buoyant since – tighter supply demand is supporting for higher yields Managing risk – hedged up to Dec 2010 for more than 24% of fuel requirement using fixed swap using Jet Kerosene and crack – c
Slide 22: Appendix
Hr. rsUr.comt Appendix
Slide 23: Fleet Composition (31 December 2009)
Fleet Composition (31 December 2009) Number of Aircraft Total Airbus A320 Boeing 737 Malaysia 48 48 0 Thailand 20 12 8 Indonesia 16 10 6 Group Total 84 70 14 22
Slide 24: Cost Breakdown – 2009
Cost Breakdown – 2009 Cost / ASK (US cents) Q1 Q2 Q3 Q4 FY2009 Staff Costs 0.34 0.38 0.36 0.38 0.35 Fuel and Oil 1.04 1.30 1.37 1.39 1.21 User Charges and Station Expenses 0.26 0.25 0.29 0.33 0.26 Maintenance and Overhaul 0.17 0.11 0.15 0.13 0.16 Aircraft related cost 0.15 0.13 0.15 0.09 0.14 Deprec
Slide 25: Cost Breakdown – 2008
Cost Breakdown – 2008 Q1 Q2 Q3 Q4 FY2008 Cost / ASK (US cents) restated restated restated restated restated Staff Costs 0.35 0.38 0.36 0.27 0.34 Fuel and Oil 1.92 2.43 2.73 1.84 2.22 User Charges and Station Expenses 0.20 0.00 0.23 0.26 0.18 Maintenance and Overhaul 0.16 0.13 0.12 0.26 0.17 Aircraft