Slide 1: AirAsia Berhad 4Q14 and FY2014 Earnings Briefing
AIRASIA BERHAD 4Q14 AND FY2014 EARNINGS BRIEFING 1
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: 4Q14 Key Financial Highlights
4Q14 KEY FINANCIAL HIGHLIGHTS 3
Slide 4: Key Highlights – 4Q14
KEY HIGHLIGHTS – 4Q14 MALAYSIA • Revenue of RM1.48 billion up 16% y-o-y • Operating profit of RM226.30 million up 12% y-o-y • Net Operating Profit of RM109.80 million down 9% y-o-y due to staff bonus accrued in December • EBIT Margin of 15% and EBITDAR margin of 31% • CASK up 9% y-o-y to US cents 3.
Slide 5: Key Highlights – 4Q14 Performance: Revenue and Operating Profit
KEY HIGHLIGHTS – 4Q14 PERFORMANCE REVENUE +21% yoy +16% yoy +11% yoy • Positive recovery in average fare in all three main markets RM THB IDR 1.48 7.88 1,731.63 bil bil bil MALAYSIA THAILAND INDONESIA OPERATING PROFIT • Malaysia – Double digit increase despite +93% yoy +106% yoy unplanned bonus paym
Slide 6: Key Highlights – 4Q14 Performance: RASK
KEY HIGHLIGHTS – 4Q14 PERFORMANCE RASK – Recovery in progress across all AOCs MALAYSIA MALAYSIA – Rational market driving fares up • Three consecutive RASK increase y-o-y as MAS (sen) 16.39 15.95 becoming rational 15.36 15.46 • Q-o-q increase in 2H14 • Ancillary up 31% and fare up 13% y-o-y as promi
Slide 7: Key Highlights – 4Q14 Performance: Ancillary Income
KEY HIGHLIGHTS – 4Q14 PERFORMANCE +31% yoy +16% yoy ANCILLARY INCOME -3% yoy PERFORMANCE ACROSS ALL RM THB IDR COUNTRIES 47 360 180,467 per pax per pax per pax MALAYSIA THAILAND INDONESIA CORE ANCILLARY • Duty free and Wifi Launched • Assigned Seating’s revenue: RM22 mil up 24% and Freight’s revenue
Slide 8: Outlook & Strategy
OUTLOOK & STRATEGY
Slide 9: The AirAsia Business
THE AIRASIA BUSINESS AIRLINE PASSENGER REVENUE ANCILLARY INCOME PRIVATE EQUITY BUSINESS 9
Slide 10: Airline Passenger Revenue: 2015 Catalysts
AIRLINE PASSENGER REVENUE 2015 CATALYSTS RATIONAL MARKET LOW FUEL PRICE • Average fare recovered in 2H14, after five consecutive negative yoy performance, showing market becoming rational • MAS’s new management and restructuring indicates a more stabilised fare environment • Malindo halted jet growt
Slide 11: Airline Passenger Revenue: Capacity Management Strategy
AIRLINE PASSENGER REVENUE CAPACITY MANAGEMENT STRATEGY • Defer Airbus A320 CEOs to later dates to take advantage of new NEOs (16% more fuel efficient) • Selling of older aircraft to ensure a young and efficient fleet • To manage growth, ensuring all country operations focus on maximising profits fro
Slide 12: Airline Passenger Revenue: Indonesia and Philippines
AIRLINE PASSENGER REVENUE INDONESIA Network optimisation completed 2015 – FOCUS ON Registered operating profit of IDR23.4 bil in 4Q14 from TURNING AROUND operating loss of IDR369.09 bil the year before INDONESIA & PHILIPPINES Average fare up 26%, RASK up 25% y-o-y Floor price – will focus on
Slide 13: Airline Passenger Revenue: Malaysia and Thailand
AIRLINE PASSENGER REVENUE MALAYSIA Market turned rational – ave fare up 13% in 4Q14 Load forecast: 74% in Q1, focusing on driving yield AA & competitors reducing capacity to ensure profitability is optimised MAS undergoing restructuring and Malindo halted growth Favourable outlook with low
Slide 14: Ancillary Income
ANCILLARY INCOME ACHIEVED RM47 PER PAX IN 4Q14. NEAR TERM TARGET – RM50 DUTY FREE PREMIUM FLEX • Duty Free business launched in August • Baggage included, free flight • Pre-book duty free available on booking path. change, priority seating and • Duty-free website will launch in Mar 2015 boarding • C
Slide 15: Ancillary Income: Inflight Meals and Redbox
ANCILLARY INCOME INFLIGHT MEALS REDBOX • Contributed ~RM74mil to ancillary in 2014 • Jan’15: • 13 revenue growth in pre-book hot meals, 37% in inflight snacks • Intro of combo meals contribute to increase in overall F&B revenue • Wastage reduced by 5.6% YoY • Revamp of menu and include kids’ meal: •
Slide 16: Private Equity Investment
PRIVATE EQUITY INVESTMENT MONETISING FROM GROWTH IN ADJACENCY BUSINESSES BIG AIRASIA EXPEDIA • 516,324 points issued in 4Q14, +70% YoY • Revenue +26% YoY in 4Q14 • 95,102 points redeemed in 4Q14, +97% YoY • Significant cost of sales • 12mil members, 300% YoY increase in members improvement down 12%
Slide 17: Thank You
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Slide 18: Appendix
APPENDIX 18
Slide 19: 2015 Aircraft Allocation & Movements
AIRLINE PASSENGER REVENUE 2015 AIRCRAFT ALLOCATION & MOVEMENTS END OF DELIVERY FLEET MOVEMENTS NET FLEET AT 2014 FROM END OF 2015 (171 A320s) AIRBUS (171 A320s) • -3 (move older aircraft to TAA) • -2 (sale of aircraft) 81 1 • -3 (move older aircraft to India) 75 • +1 (from PAA) 40 2 • +3 (from MAA)