Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q1 2020 Earnings Presentation
22 slides from Capital A Berhad's earnings presentation, Jun 30, 2020
Slide 1: AirAsia Group Berhad Analyst Presentation 1Q20
AirAsia Group Berhad Analyst Presentation First Quarter Results for the Financial Year 2020 30 June 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: 1Q20 highlights
1Q20 highlights 3
Slide 4: 1Q20 Key Highlights
1Q20 KEY HIGHLIGHTS Started the year strong, with all Asean AOCs profitable in Jan 2020, with rational competitors. This bodes well for us in the post-covid-19 world. Proactive capacity management started in Feb 2020. As travel restrictions increased, we hibernated our fleet in late March 2020. Despit
Slide 5: 1Q20 Financial Highlights
1Q20 FINANCIAL HIGHLIGHTS Revenue Group EBITDA Profit/ Loss after Tax Group revenue declined by Break-even EBITDA 15% YoY Largely due to 🔻15% shortfall in revenue & higher Forex & Fuel MTM maintenance RM million derivatives loss loss -110 Wider loss after tax due to: ● Shortfall in revenue amidst…
Slide 6: Non-airline businesses continue to grow
Non-airline businesses continue to grow ● Revenue grew 161% YoY ● In 1Q, remittance expanded to include India, Bangladesh and Nepal ● Home screen was redesigned to allow users to filter spending by date, category, amount, country and type ● Revenue grew 49% YoY while EBITDA improved 22% YoY. Tonnage
Slide 7: Outlook
Outlook 7
Slide 8: We are ready for a post-Covid-19 digital world
We are ready for a post-Covid-19 digital world ● Travel has changed, and so have we ● We are more than an airline. We are a digital travel & lifestyle company ● Group reorganisation completed in 2019. Two pillars: airline & RedBeat Ventures. ● Leveraging our extensive reach on AirAsia.com and its lo
Slide 9: Leaner airline operations
Leaner airline operations ● Leaner and tighter ship with headcount rationalisation. ● Cash is king. Reduced fixed cost burn by 60% for 2Q20. Variable cost negligible. ● Restructured major portion of fuel hedging contracts ● Capital: Malaysia : Prihatin Economic Stimulus Package (ESP) close to closing
Slide 10: Ensuring sufficient liquidity in 2020
Ensuring sufficient liquidity in 2020 ● Deferred operating lease and maintenance payments ● Rollover of working capital loans ● Reviewed pilots’ allowances ● Pay cuts across the board including directors ● Seeking loans & exploring other forms of capital raising ● Restructured fuel hedging contracts
Slide 11: Extensive cost reduction exercise in 2020 & 2021
Extensive cost reduction exercise in 2020 & 2021 Aiming for 50% reduction in cash expenses in 2020 % 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: ● Co
Slide 12: Customers want to travel…
Customers want to travel… Our Insights team have collaborated with CRM team to launch a fun short survey to know our customers’ … and for those that have flown, they future travel behaviours from the lockdown. are spending more on ancillary products 20% 42% Since resuming flights in Malaysia and Thail
Slide 13: Domestic flights resumed, gaining strong rebound demand
Domestic flights resumed, gaining strong rebound demand ● Malaysia: ○ Domestic routes started 29 April and scaling up. 80% of domestic routes to be running in July 2020. ○ Middle seat limitation has been removed. ○ Peers have also resumed domestic operations in June and are looking at resuming intern
Slide 14: Maximising revenue in a reduced capacity/competition environment
Maximising revenue in a reduced capacity/ competition environment Active capacity management to match demand ● Terminate loss making routes. ● Initial rollout to domestic sectors. Resuming international flights to serve pent up demand from China and ASEAN cities within 3Q2020. We expect market recove
Slide 15: Early successes of RedBeat Ventures - AirAsia.com & AirAsia BIG Loyalty
Early successes of RedBeat Ventures - AirAsia.com & AirAsia BIG Loyalty AirAsia.com ● Started selling third party airlines in Nov 2019 in line with our vision to become an online travel agent ● Direct sourcing from hotels with better commission rates offered. Big brands are coming to us. ● Hotel in-
Slide 16: Early successes of RedBeat Ventures - BigPay, Teleport & Santan
Early successes of RedBeat Ventures - BigPay, Teleport & Santan BigPay ● 1.1mn downloads ● Live in Singapore ● Remittance growing >25% every month. Launched five new corridors including Nepal, India, Bangladesh, Vietnam and Australia. Remittance now to 9 countries from MY & SG ● Final stages of deplo
Slide 17: Thank You & Appendix
THANK YOU & APPENDIX eesti
Slide 18: 1Q 2020 Ancillary
1Q 2020 Ancillary Airline ancillary shrunk 28% 1Q2020 ancillary decreased by 16%, making up 24% of revenue RM374mil Airline ancillary was down by 28% YoY mainly due to removal of processing fees & 22% less passengers carried. Excluding processing fees, ancillary per pax was flat YoY. Non-airline anci
Slide 19: 1Q20 Financial & Operational Performance
1Q20 Financial & Operational Performance MAA IAA PAA Key Indicators 1Q19 1Q20 % 1Q19 1Q20 % 1Q19 1Q20 % Passengers Carried 8,716,196 6,337,574 ▼ -27% 1,857,296 1,718,192 ▼ -7% 1,974,968 1,791,244 ▼ -9% Capacity 9,980,958 8,242,796 ▼ -17% 2,126,700 2,336,940 ▲ 10% 2,161,260 2,134,440 ▼ -1% OPERATIONA
Slide 20: 1Q20 Financial & Operational Performance (cont'd)
1Q20 Financial & Operational Performance (cont’d) TAA AAI AAJ Key Indicators 1Q19 1Q20 % 1Q19 1Q20 % 1Q19 1Q20 % Passengers Carried 5,861,824 4,531,142 ▼ -23% 1,936,888 2,518,884 ▲ 30% 94,051 124,408 ▲ 32% Capacity 6,507,990 5,420,286 ▼ -17% 2,173,680 3,115,800 ▲ 43% 117,720 173,964 ▲ 48% OPERATIONA
Slide 21: 1Q20 Domestic Market Share
1Q20 Domestic Market Share ＝ 61% 30% 4% 22% 8% flat 2ppts 2ppts 4ppts 2ppts ＝ flat 5ppts ＝ flat 3ppts 3ppts ＝ flat 4ppts 2ppts ＝ flat 5ppts 21
Slide 22: Fuel Hedging
Fuel Hedging ● Latest Brent hedges as follows: ○ 70% of our FY2020 Brent fuel hedging contracts have been restructured in one form or another ○ Average Brent Hedge price is US$61.41 for 2020 Note: As at 6 July 2020 The above is subject to change due to ongoing restructuring discussions with counterp