Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q3 2020 Earnings Presentation
17 slides from Capital A Berhad's earnings presentation, Nov 24, 2020
Slide 1: AirAsia Group Berhad Analyst Briefing 3QFY20 Results
AirAsia Group Berhad Analyst Briefing for the 3QFY20 Results 24 November 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: Performance Highlights
Performance Highlights 3
Slide 4: 3Q20 Key Highlights
3Q20 KEY HIGHLIGHTS Successfully rebranded and relaunched airasia.com into a leading all-in-one Asean digital travel and lifestyle super app Positive results despite P&L loss of RM1.08 bil. Excluding fuel hedging, lease costs and one-off items which are impairment of receivables and gain on disposal
Slide 5: 3Q20 Financial Highlights
3Q20 FINANCIAL HIGHLIGHTS Revenue Group EBITDA Net Operating Profit/ Loss (RM mil) (RM mil) (RM mil) Revenue grew 272% QoQ but declined 86% YoY: ● Operated 19% of pre-Covid total capacity during the quarter led by MAA with 30% in Sept ● RASK for MAA increased by 1% while RASK for PAA increased by 49
Slide 6: Cost Containment Strategies Intact
COST CONTAINMENT STRATEGIES INTACT Fixed costs reduced by 50% in 3Q20 ● Staff costs decreased by 51% due to headcount Fixed Fixed maintenance rationalisation, salary cuts across the board & attrition costs ● Fixed maintenance reduced 68% due to asset Other opex reduced optimisation 50% ● Other opex
Slide 7: 5x Airline Revenue Growth QoQ
5X AIRLINE REVENUE GROWTH QOQ 3Q20 load factor was solid at 68%. MAA hit 70% load factor in Sept with 30% operating capacity RASK increased by 1% Passengers carried increased 18 times QoQ with easing travel restrictions IAA to focus on domestic routes expansion and exploring new domestic routes in 2
Slide 8: Robust Digital Platforms
ROBUST DIGITAL PLATFORMS Positive EBITDA of RM20 mil despite a decline in revenue from cargo capacity due to closed borders Transformed from cargo to an end-to-end delivery infrastructure (including first, last mile, and customs clearance) and launched e-commerce marketplaces focused on delivery wit
Slide 9: Robust Digital Platforms
ROBUST DIGITAL PLATFORMS Revenue grew 64% QoQ and 86% YoY Growth driven by business recovery post-MCO, also supported by the new outlet in Sunway Pyramid which opened in July, orders through satellite kitchen and collection of franchise fees Launched Santan Food, a specially curated space at its fla
Slide 10: Outlook
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Slide 11: Ensuring Sufficient Liquidity
ENSURING SUFFICIENT LIQUIDITY Announced ceasing of AAJ operations in early Oct to reduce cash burn for the Group due to the highly challenging operating environment Disposal of spare engines in 3Q20 to raise liquidity. Exploring other potential monetisation opportunities Cost containment on track: r
Slide 12: Faith in Flying Restored
FAITH IN FLYING RESTORED MoM capacity Seeing strong signs of recovery in key domestic markets due to pent-up demand, especially in Thailand (currently close to 100% pre-covid domestic capacity). Slight setback in Malaysia but expect to bounce strongly in December. Expecting a rebound in forward book
Slide 13: Fleet Downsize to Match Demand and Increase Aircraft Utilisation
FLEET DOWNSIZE TO MATCH DEMAND AND INCREASE AIRCRAFT UTILISATION Planned fleet reduction Our network plan is continuously revised for 2020 & 2021 to reflect the latest recovery timeline -1 following the ongoing Covid-19 impact. -22 We have planned for reduction in our fleet count to match our expect
Slide 14: Digital Turning Plans into Actions
DIGITAL TURNING PLANS INTO ACTIONS will be expanding availability of products and service, such as SNAP, Hotels, Activities and Unlimited to Asean countries and China is working on rolling out upcoming products, including lending (Malaysia, Philippines), payment (Thailand) and remittance (Philippine
Slide 15: RedQ, Sepang, Malaysia
RedQ, Sepang, Malaysia www.airasia.com/aagbir aagb_ir@airasia.com 15
Slide 16: Appendix
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Slide 17: 3Q20 Airline Performance
3Q20 AIRLINE PERFORMANCE MAA IAA PAA Key Indicators 3Q19 3Q20 % 3Q19 3Q20 % 3Q19 3Q20 % Passengers Carried 8,845,823 1,774,963 ▼ -80% 2,048,968 73,701 ▼ -96% 2,107,387 67,760 ▼ -97% OPERATIONAL Capacity 10,636,026 2,610,686 ▼ -75% 2,411,640 150,660 ▼ -94% 2,453,940 121,320 ▼ -95% Load Factor (%) 83%