Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q2 2020 Earnings Presentation
17 slides from Capital A Berhad's earnings presentation, Aug 25, 2020
Slide 1: AirAsia Group Berhad Analyst Presentation 2Q20
AirAsia Group Berhad Analyst Presentation Second Quarter Results for the Financial Year 2020 25 August 2020
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Information contained in our presentation is intended solely for your personal reference and is strictly confidential. 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
Slide 3: 2Q20 Key Highlights
2Q20 KEY HIGHLIGHTS Successfully pivoted the airline into a digital lifestyle company, anchored on travel. RedBeat Ventures renamed AirAsia Digital Stabilised the airline in 2Q20. We will be able to ride out on domestic business if travel restrictions remain in place and borders stay closed ● Fuel h
Slide 4: AirAsia Group consists of two main groups: Airline and Digital
AirAsia Group consist of two main groups: Airline and Digital AirAsia Group Airlines F&B Platform Logistics & Financial Services eCommerce Food AirAsia Shop Engineering Ground Handling 4
Slide 5: Leaner airline group: 72% reduction in airline opex in 2Q20
Leaner airline group: 72% reduction in airline opex in 2Q20 Sets the foundation moving into 2021 Airline opex reduced by 72% YoY in 2Q20 ● Staff costs declined by 34% contributed by headcount rationalisation, pay cuts across the board, cancellation of social events. ● Maintenance cost down 93% as we
Slide 6: Airline seeing encouraging pick-up MoM
Airline seeing encouraging pick-up MoM Malaysia: ○ AirAsia Malaysia (MAA) doubled capacity in June compared to May, following the reopening of Interstate travel since 10 June ○ At the end of 2Q, MAA has reopened 24 routes ○ Recently resumed KL-Singapore route for essential travel following formation
Slide 7: The Pivot - Launch of AirAsia Digital
The Pivot - Launch of AirAsia Digital AirAsia has built an All-in-One Digital Travel and Lifestyle Ecosystem for Asean Travel has changed, and so have we ➔ We are more than an airline Platform ➔ We are a digital travel & lifestyle company ➔ We have built a broad and deep ecosystem in several segment
Slide 8: airasia.com: Asean Travel & Lifestyle Superapp
airasia.com: Asean Travel & Lifestyle Superapp ● Revenue expanded by 137% YoY in 2Q20, faster than the 118% growth rate in 1Q20 despite fleet hibernation ● New homepage launched in July, leveraging on a new in-house platform supporting quick webpage development with high flexibility ● Homepage persona
Slide 9: Teleport is the most unique & efficient air to last mile model in Asean
Teleport is the most unique & efficient air to last mile model in Asean ● Despite the complete hibernation of the airline group, Teleport pivoted from delivering cross-border e-commerce to last mile deliveries, delivering more parcels, restaurant orders, and fresh produce during the movement control
Slide 10: BigPay continues to democratise financial services
BigPay continues to democratise financial services to offer better value and transparency ● GTV grew 15% despite travel restrictions in 2Q ● Remittance volume grown 469% in 1H 2020 ● International money transfer to 10 countries from both MY and SG ● Launching bill payments in 3Q ● Bank-grade eKYC pro
Slide 11: AirAsia Big Loyalty: Asean Rewards and Points Platform
AirAsia Big Loyalty: Asean Rewards and Points Platform ● Launched BIG Xchange, a universal points exchange hub that allows two-way points conversion, from participating partner’s loyalty points into BIG Points and vice versa ● Introduced a ‘point expert’ character named BIGGIE in June, with a missio
Slide 12: Airline Strategy
Airline Strategy Forecasting AAGB capacity to drop 60% in 2020 vs 2019 with minimum Planned domestic capacity (vs 2019 capacity) international operations. In 2H20, we are ramping up domestic capacity: ● MAA up to 70-75% of pre-covid levels in 4Q ● TAA return to pre-covid levels in 4Q ● PAA up to 60%
Slide 13: RedQ, Sepang, Malaysia
RedQ, Sepang, Malaysia https://ir.airasia.com/home_ir.html aagb_ir@airasia.com 13
Slide 14: 2Q20 Financial Highlights
2Q20 FINANCIAL HIGHLIGHTS Revenue Group EBITDA Profit/ Loss after Tax Group revenue declined by 96% YoY Group EBITDA declined into the red RM million Revenue declined by 96% YoY: ● Capacity reduced by 98% due to temporary hibernation and capacity cuts as travel restrictions were in place ● Refunds of
Slide 15: 2Q20 Airline Financial & Operational Performance
2Q20 Airline Financial & Operational Performance MAA IAA PAA Key Indicators 2Q19 2Q20 % 2Q19 2Q20 % 2Q19 2Q20 % Passengers Carried 8,791,586 170,912 ▼ -98% 1,822,251 4,059 ▼ -100% 2,225,367 29,111 ▼ -99% Capacity 10,408,188 283,150 ▼ -97% 2,228,040 9,720 ▼ -100% 2,456,820 53,100 ▼ -98% OPERATIONAL L
Slide 16: 2Q20 Airline Financial & Operational Performance (cont'd)
2Q20 Airline Financial & Operational Performance (cont’d) TAA AAI AAJ Key Indicators 2Q19 2Q20 % 2Q19 2Q20 % 2Q19 2Q20 % Passengers Carried 5,578,878 283,601 ▼ -95% 2,286,992 190,395 ▼ -92% 102,815 2,482 ▼ -98% Capacity 6,751,500 544,746 ▼ -92% 2,536,380 302,040 ▼ -88% 131,712 5,844 ▼ -96% OPERATION
Slide 17: Extensive cost reduction exercise in 2020 and 2021
Extensive cost reduction exercise in 2020 and 2021 % of Cost savings measures Expected savings Cash CASK expected to reduce in 2021 2019 in 2020 from 2019 levels despite lower capacity ● 15-100% pay cut across the board including directors due to: ● Controlled hiring + review fixed term contracts ● B