Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2015 Earnings Presentation
13 slides from Capital A Berhad's earnings presentation, Nov 26, 2015
Slide 1: AirAsia Berhad 3Q15 Earnings Briefing
AIRASIA BERHAD 3Q15 EARNINGS BRIEFING 26 NOVEMBER 2015
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: 3Q15 Key Highlights: Malaysia
3Q15 KEY HIGHLIGHTS MALAYSIA • Revenue: RM1.52 bil (+15% YoY) due to 19% increase in pax volume • Load factor: 82% (+5ppts YoY) due to increased demand as competitors cut capacity and routes. Chinese arrivals improved 22% YoY in 3Q15. Strong demand continues towards the end of the year and we ar
Slide 4: 3Q15 Key Highlights: CASK and RASK
3Q15 KEY HIGHLIGHTS MALAYSIA CASK CASK – ex Fuel (sen) (sen) 13.10 -4% +2% 7.15 12.54 6.99 3Q14 3Q15 3Q14 3Q15 • -14% in average fuel price to USD77 per barrel as compared • +93% in acft lease exp due to additional 13 SLBs YoY to USD90 in 3Q14 • +29% in user charges (increased routes & fluctuation i
Slide 5: 3Q15 Key Highlights: AirAsia Group Consolidated Results
3Q15 KEY HIGHLIGHTS AIRASIA GROUP – CONSOLIDATED RESULTS OF AAB AND AOCs • Included for the first time in the Company’s Bursa Announcement (Note 9) • Revenue: RM 2.8 billion • Group Operating Profit: RM 332.15 million RM 50% • Net Operating Profit: RM 160.36 million 2.8 bil 27% • Net Profit:
Slide 6: 3Q15 Key Highlights: Associates
3Q15 KEY HIGHLIGHTS ASSOCIATES • Thailand – Revenue up 31% due to 26% increase in pax volume, operating profit up 221%, profit after tax up 146% to THB174.43mil (USD4.85mil). Equity accounted RM9.7mil. RASK increased 5% and CASK decreased 10% • Indonesia – Revenue down 14% due to 7% reduction in cap
Slide 7: Ancillary Revenue +15%
ANCILLARY REVENUE +15% Others 15% • Total ancillary revenue increased 15% yoy, with ancillary Connecting Fees income per pax of RM46 4% RM • Biggest contributors: Assigned Seat Baggage 46 6% 44% Baggage (44% of total ancillary revenue) and cargo (10% of total ancillary revenue) AA Insurance Per Pax
Slide 8: Balance Sheet - Net Gearing
BALANCE SHEET - NET GEARING • Net gearing increased to 2.98x due to (i) USDMYR fluctuation (ii) Recognition of IAA’s current and past losses, affecting Retained Earnings • Cash up 31% QoQ to RM2.4 bil USD BORROWINGS REDUCED MYR USD USDMYR • Increased due to fluctuation in Taking out the USDMYR 14,00
Slide 9: Hedging Updates
HEDGING UPDATES FUEL HEDGING • 2015: AA Grp is 50% hedged at ave of USD88 per barrel. Current effective cost is USD80. • Current jet fuel price is USD58 per barrel CURRENCY HEDGING Only 28% of USD borrowings is totally unhedged: • Loans: USD (84%), MYR (14%), SGD (2%) 36% • USD loans: • 36% - MAA ac
Slide 10: Indonesia AirAsia - Turnaround Update
INDONESIA AIRASIA - TURNAROUND UPDATE REVENUE: Q3 Q3 Deviation • Load came off short by 2ppt and average fare off by 23% Forecast Actual • Demand slackened due to negative equity requirement Revenue 1,645,216 1,483,651 -10% which was widely covered by media, creating uncertainty (IDR mil) over IAA’s
Slide 11: Indonesia AirAsia - Turnaround Update: Forward Trend
INDONESIA AIRASIA - TURNAROUND UPDATE FORWARD TREND • On track to reach 80% load factor in 4Q15 • Domestic market showing good improvement with ongoing promo • 1Q16 target to achieve 8ppt increase in load to 78% with increased average fare of approx 2% leading to an increase in RASK 78% 78% Forward
Slide 12: Philippines' AirAsia - Turnaround Update
PHILIPPINES’ AIRASIA - TURNAROUND UPDATE REVENUE: • Lower than target due to lower average fare (- 18%). However, load improved by +5ppt to 84% Q3 Forecast Q3 Actual Deviation • Ave fare did not meet target due to unplanned Revenue 2,447,303 2,074,154 -15% maintenance check extensions which led PAA
Slide 13: Philippines' AirAsia - Turnaround Update: Forward Trend
PHILIPPINES’ AIRASIA - TURNAROUND UPDATE FORWARD TREND • Forecast 80% load in 4Q15 (+8ppt YoY) with double digit increase in pax RASK • Although average fare is forecasted to be down YoY, overall pax revenue is expected to increase with 30% additional capacity • Forecast 82% load (+4ppt) in 1Q16 wit