Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q1 2016 Earnings Presentation
17 slides from Capital A Berhad's earnings presentation, May 26, 2016
Slide 1: 1Q16 Earnings Briefing
AIRASIA BERHAD Eee 1Q16 EARNINGS BRIEFING 26 MAY 2016
Slide 2: Disclaimer
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 we no
Slide 3: 1Q16 Key Highlights - Malaysia
1Q16 KEY HIGHLIGHTS MALAYSIA - STRONG SHOWING Passengers carried at 6.48 million, rose by 17% from prior year, exceeding capacity growth of 3% Recorded a high load factor of 85% (+10ppts YoY) Average fare increased 11% YoY to RM166 Ancillary income per pax up 5% YoY to RMSO - target achieved! Net op
Slide 4: 1Q16 Key Highlights - Malaysia
1Q16 KEY HIGHLIGHTS MALAYSIA REVENUE (RM million) +31% 1,699 1,297 1Q15 1Q16 PROFIT AFTER TAX (RM million) 876.9 +487% 1Q16 NET OPERATING PROFIT 4098 (RM million) +230% . 124.1 1Q15 1Q16 Revenue up 31% YoY to RM1.70 bil due to 17% growth in passenger volume, 11% growth in average fare and 22% growth
Slide 5: Maximising Revenue & Minimising Cost
MAXIMISING REVENUE & MINIMISING COST MALAYSIA - RASK & CASK REVENUE PER ASK (RASK) (RM sen) 16.88 7 14.38 1Q15 1Q16 * RASK increased 17% on the back of strong and healthy demand * CASK down 1% YoY as result of lower aircraft fuel expenses. However, this was offset by 112% increase in aircraft operat
Slide 6: 1Q16 Key Highlights - Associates: Thailand and Indonesia
1Q16 KEY HIGHLIGHTS ASSOCIATES Thailand REVENUE (THB million) NET OPERATING PROFIT (THB million) 1,940 +76%, 1,102 1Q15 1Q15 1Q16 PROFIT AFTER TAX (THB million) +99% 1Q15 1,832 1Q16 Revenue up 16% on the back of higher passenger carried on the back of 11% increase in capacity which led to a Sppts in
Slide 7: 1Q16 Key Highlights - Associates: Philippines and India
1Q16 KEY HIGHLIGHTS ASSOCIATES Philippines REVENUE (PHP million) a 2,101 1Q15 2,574 1Q16 NET OPERATING LOSS (PHP million) 89 | 1Q16 -375 +110% -54% -816 -855 PROFIT AFTER TAX (PHP million) Revenue up 23% due to 15% higher passenger volume exceeding capacity growth of 2% which led to a 10ppts increas
Slide 8: MAA TAA IAA PAA AAI
• • • • • MAA TAA IAA PAA AAI Elimination Malaysia Thailand Indonesia Philippines India Japan Adjustments Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Revenue 1,699,294 1,033,416 275,386 229,640 118,764 - (360,996) 2,995,503 Operating expenses - - - - - - - - Staff costs (210,172) (
Slide 9: 1Q16 Ancillary Revenue +22%
1Q16 ANCILLARY REVENUE +22% RMS5O per pax achieved! * Total ancillary revenue increased 22% YoY, Others pushing ancillary income per pax up by 5% to 21% RMSO Connecting * Biggest contributors: Fees Baggage * Baggage (45% of total ancillary revenue) 6% 45% and * Cargo (9% of total ancillary revenue)
Slide 10: Duty Free, TPAAY
Duty Free • • • • • • • TPAAY • • • • • •
Slide 11: Balance Sheet - Net Gearing
BALANCE SHEET - NET GEARING Net gearing decreased by 20% to 1.84x due RM million 14,000 * In absolute USD terms, USD 10,000 borrowings reduced by 8,000 USD143mil or 6% QoQ 6,000 4,000 2,000 O 3,000 * Asaresult of having a healthy cash 2500 balance, the Company is able to 2000 repay working capital b
Slide 12: Adjacency Businesses
ADJACENCY BUSINESSES = MONETISING GROWTH IN ADJACENCY BUSINESSES Asia Aviation Capital *1Q16: Rev USD53.6m EBITDAR USD38.9mil Margins: EBIT 28%, EBITDAR 73% « Revenue generated from the lease income of up to 43 aircraft in AAC’s portfolio as at end March 2016 ¢ 4 aircraft deliveries in 1Q16: 1 each
Slide 13: Adjacency Businesses
ADJACENCY BUSINESSES = MONETISING GROWTE IN ADJACENCY BUSINESSES Rev RM5.7m EBITDAR RM1.1mil Margins: EBIT 19%, EBITDAR 19% * Key initiatives for 2016: * Increased marketing push e.g. sales at gate and promotion at check-in counters * Increase no. of passengers connecting to the roKKi Inflight Porta
Slide 14: Indonesia AirAsia - Turnaround Update
INDONESIA AIRASIA - TURNAROUND UPDATE FORWARD TREND * Load factor exceeded target for April and the similar trend is being observed for May and June * Average fare in April dipped below last year’s result, but the gap is expected to narrow for May and June * IAA is expected to remove 1 aircraft from
Slide 15: Philippines AirAsia - Turnaround Update
PHILIPPINES AIRASIA - TURNAROUND UPDATE FORWARD TREND * Demand remains strong buoyed by the on-going School Holiday period as load factor expected to increase by 12ppts YoY to 91%, with an increase in average fare projected * Average fare will not meet target as it is projected to stay relatively co
Slide 16: 2Q16 Outlook
2Q16 OUTLOOK Indonesia Philippines > Strong demand in 2Q16 Load factor forecast at 88% Continue to observe strong demand from Chinese nationals & favourable fuel price ahead Load factor forecast at 83% with estimated capacity growth of approximately 11% To focus marketing activities on domestic, Chi
Slide 17: Thank You
% 7 YEARS munninc] 5 = ros THANK YOU