Starlux Airlines Co., Ltd. · TWSE:2646
Starlux Airlines — Investor Conference 2024
49 slides from Starlux Airlines's conference presentation, Sep 25, 2024
Slide 1: STARLUX Airlines
Stock Symbol:2646 STARLUX AIRLINES 25/SEP/2024
Slide 2: Disclaimer
• The information provided in this presentation, including but not limited to certain forward-looking statements or projections, is based on internal data and the current overall economic environment as assessed by the company. This information involves risks and uncertainties, and investors should
Slide 3: Agenda
Agenda 1、About Us 2、Market & Strategies 3、Operational Performance 4、Future Prospects 5、Sustainability
Slide 4: About Us
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Slide 5: Company Overview
Company Overview STARLUX AIRLINES CO., LTD. Stock Symbol 2646 Date of Establishment May 2, 2018 Paid-up Capital 25.38 billion 15F, No. 382, Sec. 6, Nanjing E. Road, Neihu Company Location District, Taipei City, Taiwan, R.O.C. Employee 4,291 Business Civil aviation transportation Date of Becoming Sep
Slide 6: Milestones
Milestones Growth Expansion Establishment • New routes launched to Hanoi, Cebu, Sendai, • Received the official business • Flight Operations Center opened. Clark, Kumamoto, and Nagoya. registration certificate. • Received ISO 27001 & 27701 • Entered North America market for the first • Air Operator
Slide 7: Infrastructure
Infrastructure A321/A330/A350 Simulator Aircraft Maintenance Hangar Bonded Warehouse (sufficient for 50 24hrs Flight Monitoring Center (capacity of three aircraft) flights per day) Operations and Aircraft Maintenance Area for Aircraft Ground Handling Equipment Maintenance Training Cent
Slide 8: Market & Strategies
「Market & Strategies」
Slide 9: Comparison of TPE and Other Airports
Market 台灣民航市場商機無限 Comparison of TPE and Other Airports TPE DXB HKG SIN Unit: million ppl Population 23.42 9.52 7.50 6.01 in 2023 Pax Traffic 35.35 86.99 39.40 58.90 in 2023 Pax Traffic 42.30 83.65 70.31 58.70 before Covid-19 Percentage of Transit Traffic 11% 57% 30% 27% before Covid-19 12
Slide 10: World Airline Ranking: Passenger
Market Pax Traffic Pax Capacity Passenger Rank Airline RPK (million) ASK (million) (million) 2019 … World Airline 5 Emirates Airlines 288,148 367,153 56.20 Ranking … 13 Qatar Airways 170,463 238,426 32.40 … Passenger 18 Singapore Airlines 140,999 171,211 35.80 19 Cathay Pacific Group 134,397 163,244
Slide 11: Comparison of 2019 Pax Traffic (RPK)
Market Comparison of 2019 Pax Traffic (RPK) Unit：RPK(million) 阿聯酋 Emirates Airlines 32% 288,148 卡達 Qatar Airways 54% 170,463 新加坡 Singapore Airlines 65% 140,999 Cathay Pacific 國泰 Group 68% 134,397 National 國籍A+B Airlines 91,216 A+B 0 50,000 100,000 150,000 200,000 250,000 300,000 14
Slide 12: World Airport Ranking: Cargo
Market Cargo Traffic Rank Airport 2023 (Metric Ton) World Airport 1 2 Honk Kong (HKG) Memphis (MEM) 4,331,976 3,881,211 Ranking 3 Shanghai (PVG) 3,440,084 4 Anchorage (ANC) 3,380,374 Cargo 5 Incheon (ICN) 2,744,136 6 Louisville (SDF) 2,727,820 7 Miami (MIA) 2,525,591 8 Doha (DOH) 2,355,503 9 Los Ang
Slide 13: Air Passenger Market
Market Air Passenger Market RPK by airline region, % YoY 1. The global air passenger traffic in Q1 and Q2 of 2024 has surpassed pre-pandemic levels. 2. The YoY in Asia Pacific for Q1 and Q2 of 2024 was 44.8% and 26.8%, leading all other regions. Source：IATA Economics 16
Slide 14: Air Cargo Market
Market Air Cargo Market Industry CTK, year-to-date 1. The cargo volumes in H1 2024 reached a three-year high, marking the fourth consecutive quarter with positive YoY growth. 2. The YoY of air cargo volumes in Asia-Pacific for Q2 2024 was 16.7%, the largest increase since 2021. Source：IATA Economics
Slide 15: Focus on Strategically-Targeted Markets
Strategies Cross-Pacific Transit Market Focus on S t r a t e g i c a l l y- Ta r g e t e d Maximize Taiwan’s location advantage to develop the transit market between Markets North America and South-East Asia with a population of over 1.2 billion people. Business Travel Market Cargo Market By offerin
Slide 16: Strategy Enablers: Fleet, Tech, Network, Safety, Brand, Talent, Service
Fleet Introduce eco-efficient and energy-saving Strategies next-generation fleet. A321neo / A330neo / A350 Techonolgy Set up high-tech software Network and hardware to facilitate Fleet Maximize Taiwan’s location operations and enhance advantage to develop regional network and transit market. service
Slide 17: Advantages of New-Generation Fleet
Fleet Advantages of New-Generation Fleet 2. Reduction in Carbon Emissions • 20%~25% less carbon emissions vs previous generation aircraft. 1. Cost Saving • Fuel: 20~25% less fuel burn per seat vs. previous 3. Comfort Enhancement generation aircraft. • Maintenance: Advanced materials and design • Uti
Slide 18: Fleet
Fleet Fleet The future fleet size will be adjusted based on market demand. Aircraft Type 2024 2025 2026 2029 A321neo 13 13 19 19 A330neo 5 8 11 11 A350-900 8 10 10 10 A350-1000 2 7 8 A350 Freighter 5 Total 26 33 47 53 * As of August 31, 2024, there are a total of 13 A321neo, 5 A330neo, and 6 A350-90
Slide 19: Capitalizing on Taiwan's Strategic Position
Network 二、台灣民航市場商機無限 New York Washington DC Chicago C a p i t a l i z in g o n Ta i w a n ' s Casablanca Toronto Huston (Morocco) London Paris Vienna Seattle Los Angeles San Francisco strategic position to Algiers (Algeria) develop a hub-and- s p o k e n e t w o r k s ys t e m . Cairo Hawaii Nairobi
Slide 20: Make Use of Taiwan's Location Advantage
Network Beijing Hokkaido M a k e u s e o f Ta i w a n ’s Tokyo location advantage to Seoul Osaka create hub-and-spoke Shanghai network. Guangzhou Taiwan • Taiwan is located at the center of Asia Hong Kong Hanoi Pacific. Yangon Manila Bangkok Ho Chi Minh City • Departing from Taiwan, one can reach ma
Slide 21: Network: Current 31 Routes, 27 Destinations
SEA CTS Network HKD SDJ NRT SFO TAK NGO LAX KIX FUK KMJ RMQ OKA HKG TPE MFM CNX HAN CRK DAD BKK PQC SGN CEB Current 31 r o u t e s 、 27 d e s t i n a t i o n s * As of December 2024 PEN KUL SIN CGK 32
Slide 22: Future Network Plan
Network F u tu re N etwo rk P lan Europe Northeast Asia China North America Southeast Asia 2022-2025 Focus on network expansion 2025 Enhance network density Oceania onwards 34
Slide 23: Brand Identities
Brand Brand Identities Segmentation Provide high-quality services to Execution Goals meet the demand for a boutique airline in Taiwan. Targeting Geared toward business and luxury travelers who value an exceptional flying experience 1. Attract business and high- yield passengers. more than a cheap pr
Slide 24: Five-Senses Services
Service Five-Senses Services Sound STARLUX exclusive in-flight music is created by Peter White, a world-renowned composer. Sight Taste The ground and flight crew uniforms are In-flight meals are created by Sean Yin, a provided by Taïrroir, prominent fashion Hutong Yakiniku, and designer in Taiwan. N
Slide 25: A321neo
Full-flat seats in Business Class Business Class equipped with 15.6-inch 1080p screen Personal IFE (Inflight Entertainment System) A321neo Free Wi-Fi services
Slide 26: A350-900 First Class
The only Taiwanese carrier offering First Class seating Sliding door in First Class and Business Class Customized cabin lighting A350-900 Electro-dimmable windows
Slide 27: Global Traveler 2024 Wines on the Wing
Service Global Traveler Best International 2024 Wines on the Wing No. 1 First-Class Wines Best International No. 6 Business-Class Wines 45
Slide 28: SKYTRAX 2024 Best by Cabin
Service SKYTRAX 2024 Best by Cabin First Class Business Class Economy Class No. 9 Best First Class Airline No. 3 Best Business Class No. 20 World’s Best Economy Comfort Amenities Airline Seats Class Airlines No. 15 World’s Best First No. 8 Best Business Class Class Airlines Airline Comfort Amenities
Slide 29: SKYTRAX World Airline Awards
Service 2021 2024 No. 99 No. 35 SKYTRAX 2023 World Airline Awards No. 39 47
Slide 30: Talent Development
Talent Talent Development Cadet Pilots • STARLUX was qualified as an aviation maintenance training organization in February 2022. • 6 batches of 60 maintenance technicians have begun training, with 46 certified from Qualification of the maintenance the 5 completed batches. training organization • 6
Slide 31: Investments in Safety
Safety Investments in Safety Cabin Crew Full Flight Simulators Training Facilities Ground Vehicles with Collision Avoidance System Maintenance Hangar 50
Slide 32: Leverage technology to support operations and enhance service
Techonolgy Leverage technology to support operations and enhance service. Amadeus Revenue Electronic Flight Cargo Management Salesforce Management System Bag (EFB) System (iCargo) (ARMS) • Sales Integration • Calculating aircraft • Passenger Revenue • Cargo Revenue • Customer performance Management
Slide 33: Operational Performance
「Operational Performance」
Slide 34: Steady Growth in Net Operating Revenue
Operational Performance Steady Growth in Net Operating Revenue Unit：NT$ Billion 4.00 3.47 3.50 3.31 3.08 3.00 2.87 2.65 2.66 2.60 2.48 2.50 2.27 2.13 2.06 2.00 1.68 1.71 1.52 1.46 1.50 1.37 1.00 0.50 0.00 Jan Feb Mar Apr May Jun Jul Aug 2023 2024 56
Slide 35: Net Operating Revenue & Gross Profit
Operational Performance Net Operating Revenue& Unit：NT$ Billion/Percentage(%) Gross Profit 25.00 25% 22.47 0% 20.00 16.33 -25% 15.00 -50% 10.00 -75% 5.00 3.36 -100% 0.00 -125% 2022 2023 2024H1 Net Operating Revenue 3.36 22.47 16.33 Gross Profit (loss)(%) -96% 17% 21% Net income (loss) (5.27) 0.15 0.
Slide 36: Air Passenger Revenue
Operational Performance 2024 January to August O p e r a t i n g P e r f o r m a n c e a n d Yo Y - P a s s e n g e r Comparison benchmark：vs JAN2023-AUG2023 Air Passenger North America Southeast Asia 21% R e v e n u e 202.9 B i l l i o n 62% 25% Hong Kong P a s s e n g e r s 263 M i l l i o n & Mac
Slide 37: Air Cargo Revenue
Operational Performance 2024 January to August O p e r a t i n g P e r f o r m a n c e a n d Yo Y - C a r g o Comparison benchmark：vs JAN2023-AUG2023 Air Cargo 83% Southeast Asia 17% R e v e n u e 17.6 B i l l i o n Northeast % Revenue Asia 12% L o a d F a c t o r 32 k i l o t o n s 25% HK & North M
Slide 38: Cost Expenditure Analysis for the First Half of 2024
Operational Performance Cost Expenditure Analysis for the First Half of 2024 Others Depreciation and 5% Amortization 21% Maintenance 10% Fuels 25% Service Cost 10% Airport Operating Cost Salary 10% 19% 62
Slide 39: Future Prospects
「Future Prospects」
Slide 40: IATA forecasts global air passenger traffic growth
Future Prospects I ATA f o r e c a s t s g l o b a l a i r p a s s e n g e r t r a f f i c w i l l g r o w annually through 2027, with Asia-Pacific region experiencing the highest growth rate Annual passenger traffic growth rate (by region) Africa 22% Asia Pacific 17.2% 17% Europe 12.1% 12% 10.4% Mi
Slide 41: Air passenger traffic at Taoyuan expected to recover
Future Prospects A i r p a s s e n g e r t r a f f i c a t Ta o y u a n I n t e r n a t i o n a l A i r p o r t is expected to return to pre-pandemic levels next year JUL2024 Pax traffic : 3.86 million % Growth in Number of Passengers at YoY 16% Air Passenger Passenger Taoyuan International Airport
Slide 42: Air cargo volume at Taoyuan expected to grow
Future Prospects A i r c a r g o v o l u m e a t Ta o y u a n I n t e r n a t i o n a l A i r p o r t i s expected to grow steadily in 2024, fueled by AI and e- commerce demand Air Cargo (kilotons) Trend of cargo volume at Taoyuan International Airport Prospects 24 22 1. Steady development of transi
Slide 43: Sustainability
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Slide 44: 2023 Sustainability Report published
ESG This June, we published our first 「2023 Sustainability Report」 and obtained AA1000 certification. 72
Slide 45: ESG-Environmental
ESG-Environmental ESG-Environmental Introducing the new generation Airbus fleet, saving 25% fuel compared and reducing noise by 20% Marketing Strategy At least 5% sustainable aviation fuel (SAF) is used for new aircraft delivery flights. Utilizing locally sourced ingredients from Taiwan to minimize
Slide 46: ESG-Social
ESG-Social ESG-Social • Support Melting Greenland Screening Project • Support the Estée Lauder Companies’ Breast Cancer Campaign • Collaborate with Guang Fu Hao and Taiwan Foundation for the Blind to create braille pencil pouches and notebooks 74
Slide 47: ESG-Governance
ESG-Governance ESG-Governance • Conducted information security and personal data protection education and training courses. • 90% of all employees received anti-corruption education and training. Performance • Established the Corporate Sustainability Committee in May 2023, holding regular meetings a
Slide 48: Summary
Summary 1. According to the foreseeable market development, we expect that air passenger and cargo volumes will continue to grow through 2025. 2. I n t h e l o n g - t e r m , Ta i w a n ’ s s t r a t e g i c l o c a t i o n a n d t h e u p c o m i n g o p e n i n g o f Te r m i n a l 3 a t Ta o y u
Slide 49: Our Vision
Our Vision A team of professionals and challengers, holding itself to the highest standards down to the most meticulous detail. An airline that never stops improving to provide superlative benefits to associates and exceeding the expectations of customers. From Asia, we radiate throughout the globe.