Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia — Q3 2008 Earnings Presentation
22 slides from Capital A Berhad's earnings presentation, Nov 28, 2008
Slide 1: July - September 2008 Quarter Results
Slide 2: Disclaimer
Disclaimer Information contained in our presentation is intended solely for your reference. 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 nor our advisors make any representation
Slide 3: Key Highlights for Jul-Sep Quarter
Key Highlights for Jul-Sep Quarter Core operating loss of RM76 million – unit jet fuel cost increased by 94% to US$162 per barrel year on year Net Loss of RM466 million – forex translation loss of RM213 million, non cash item. Based on actual contractual rates, AirAsia stands to gain RM366 milli
Slide 4: Incredible Passenger Growth
Incredible Passenger Growth Passengers Flown by AirAsia and AirAsia Associates (‘000) 2 0 ,0 0 0 oY wth Y 15 ,3 3 5 g r o 23% 13 ,5 10 R 57% G 12 ,10 7 CA 11,0 0 3 7 ,3 7 0 4 ,8 6 8 2 ,0 9 4 1,0 4 1 2002 2003 2004 2005 2006 2007 9-mth 9-mth 2008 2007 2008 Forecast Benefiting from slower economic g
Slide 5: Comprehensive & Efficient Network
Comprehensive & Efficient Network Period # Routes Served Jan 2002 6 Jun 2003 11 Jun 2004 26 Jun 2005 52 Jun 2006 65 Jun 2007 75 NOW 110 Latest Routes Kuching – Singapore KK – Singapore Upcoming Routes KL – Tiruchirapalli Î 37 unique routes 4
Slide 6: Results Commentary
Results Commentary
Slide 7: Q3 2008: Revenue Growth Components
Q3 2008: Revenue Growth Components Year-Over-Year % Change 43% + 34% 24% 12% 7% Revenue Volume Price Ancillary YTD 40% 21% 13% 6% Strong passenger growth demand Price increase from effective yield management Consistent ancillary income growth 6
Slide 8: Consistent Strong Passenger Growth
Consistent Strong Passenger Growth Passengers Carried (‘000) 2008 Seat Load Factor (%) 2008 2007 vs. capacity growth (%) 2007 Capacity growth 1 00.0% 4 5 .0% 24% 3,018 20% 9 5 .0% 36% 4 0.0% 2,823 21% 33% 33% 2,612 9 0.0% 3 5 .0% 2440 2360 8 5 .0% 80.7% 79.3% 2160 3 0.0% 8 0.0% 76.5% 76.4% 75.4% 2 5
Slide 9: Higher Average Fare & Yields
Higher Average Fare & Yields 2008 Average Fare (RM) 2008 Rev / ASK (US cents) 2007 2007 4.19 13% 12% 4.08 198 12% 16% 195 8% 3.82 10% 189 3.70 3.65 3.52 174 171 170 Qu a r t e r 1 Qu a r t e r 2 Qu a r t e r 3 Quarter 1 Quarter 2 Quarter 3 Consistent average fare and yield enhancement – competitor
Slide 10: Driving Growth from Ancillary Income
Driving Growth from Ancillary Income Jul-Sep Jul-Sep ∆% 2008 2007 Ancillary Income (RM million) 69.7 37.0 88% Passenger Spend (RM / pax) 23.1 15.2 52% % Revenue 10.6% 8.0% 2.6 ppt Checked baggage fee launched 21 April – revenue contributor and cost savings – this is the first quarter with evident
Slide 11: Ancillary Income – the driving force to high profit margins
Ancillary Income – the driving force to high profit margins 35 Ancillary Income / pax (RM) 12.0 10.6% Ancillary Income % Revenue 11.0 30 10.0 8.0% 8.3% 9.0% 25 7.6% 23.1 7.3% 8.0% 6.5% 6.6% 20 17.8 7.0% 15.2 15.1 15.7 6.0% 15 13.3 5.0% 12.0 4.0% 10 3.0% 5 2.0% 1.0% 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2
Slide 12: Cost / ASK – year on year Comparison
Cost / ASK – year on year Comparison Cost Breakdown Jul-Sep Jul-Sep ∆ (%) Reason (US cents / ASK) 2008 2007 Staff Costs 0.36 0.33 11% Pilot salary increase Fuel and Oil 2.73 1.52 79% Higher jet fuel price User & Station Charges 0.23 0.21 12% More international routes bias Maintenance and Overhaul 0.
Slide 13: Exceptional Losses
Exceptional Losses Short term pain for long-term gains Unwind fuel hedging contracts – initial view was oil prices to remain at US$70 per barrel, the financial crisis has caused the oil market to collapse and change of view – swift action by management has saved significant amount of money – at
Slide 14: Updates on Associates
Updates on Associates
Slide 15: Updates on Associates
Updates on Associates Thai updates – 25% passenger growth with 29% average fare growth YoY – posted a loss of THB250 million (RM24.6 million), our portion of losses is THB122 million (RM12.1 million) – competitors are scaling back capacity and cancelling flights – reduced losses by 44% against sec
Slide 16: AirAsia X – the World Hub is Developing
AirAsia X – the World Hub is Developing Received first purchased Airbus A330 aircraft on 2 November New Australian routes (Perth and Melbourne) performing well Kuala Lumpur to London has opened for sale – maiden flight on 11 March 2009 – exceptionally popular, tickets selling fast 15
Slide 17: Summary
Summary Improved outlook – fuel price has receded to attractive levels – more people switching to LCC as first choice of travel Competitive environment has improved – competitors has slowed / reduced capacity rollout – competitors increased fares substantially Ancillary Income Most comprehen
Slide 18: Appendix
Appendix
Slide 19: Financial Data – Third Quarter
Financial Data – Third Quarter Quarter Ended: 30 September Jul-Sep 2008 Jul-Sep 2007 ∆ (%) RM'000 Ticket Sales 588,755 424,563 39% Ancillary Income 69,720 37,022 88% Revenue 658,475 461,585 43% Once off/Exceptional Items (215,280) 0 n/a EBITDAR 69,248 148,655 -53% Core Operating Profit/(Loss) (75,93
Slide 20: Operating Data – Third Quarter
Operating Data – Third Quarter Quarter Ended: 30 September Jul-Sep 2008 Jul-Sep 2007 ∆ (%) Passengers Carried 3,018,395 2,439,600 24% ASK (million) 4,833 3,645 33% RPK (million) 3,429 2,707 27% Seat Load Factor 75.4% 79.3% -3.9 ppt Average Fare (RM) 195 174 12% Rev / ASK (sen) 13.63 12.66 8% Rev / A
Slide 21: Operating Data – Third Quarter
Operating Data – Third Quarter Quarter Ended: 30 September Jul-Sep 2008 Jul-Sep 2007 ∆ (%) Average fare (RM) 195.1 174.0 12% Ancillary Income / pax (RM) 23.1 15.2 52% Unit Revenue / pax (RM) 218.2 189.2 15% Fuel consumed ( barrels) 813,641 662,821 23% Unit fuel price ($/barrel) 162.0 83.6 94% Averag
Slide 22: Fleet Composition
Fleet Composition Operational Aircraft Count Sep 2008 Malaysia 46 Thailand 16 Indonesia 13 Group Total 75 Aircraft Type # Airbus A320 50 # Boeing 737-300 25 21