Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2009 Earnings Presentation
25 slides from Capital A Berhad's earnings presentation, Nov 20, 2009
Slide 1: ASEAN Airline Takes Wing: Third Quarter 2009 Results
ASEAN Airline Takes Wing Third Quarter 2009 Results 20 November 2009
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 Third Quarter
Key Highlights for Third Quarter Strong third quarter results given challenging operating environment – core operating profit RM34 million, reversal from RM82 million loss in Q3-2008 – third quarter is our weakest quarter – consumer sentiment impacted by A-H1N1 and challenging global economy Raised
Slide 4: Malaysia: Third Quarter in a Snapshot
Malaysia: Third Quarter in a Snapshot Quarter Ended: 30 September Jul-Sep 2008 Change Jul-Sep 2009 RM'000 unless othe rwise stated (restated) y-o-y Revenue 739,668 707,909 4% EBITDAR 234,611 101,687 131% Core Operating Profit 33,834 (81,580) n/a Profit after Tax 130,072 (470,570) n/a Disciplined, pr
Slide 5: Indonesia: Third Quarter in a Snapshot
Indonesia: Third Quarter in a Snapshot Indonesia has turned the corner, net profit of IDR59 billion (RM21 million) Platform for sustained profitability has been established Indonesia AirAsia Cost / ASK New Route Strategy is Producing Profits Indonesia Cost / ASK (US cents) Indonesia Margin Spread (R
Slide 6: Thailand: Third Quarter in a Snapshot
Thailand: Third Quarter in a Snapshot Thailand is headed towards the right direction Thailand AirAsia Cost / ASK New Route Strategy is Producing Profits Thailand Cost / ASK (US cents) Thailand Load Factor 5.6 4 79 .1% 6.00 5.4 6 5.52 80.0% 78 . 2 % 77. 5% 5.00 74 .6 % 73 .9 % 4 .14 4 .15 4 .13 75.0%
Slide 7: AirAsia X: Third Quarter in a Snapshot
AirAsia X: Third Quarter in a Snapshot The long haul, low cost model is proven successful Passengers Carried Revenue (RM million) Passenger Carried and Load Factor Revenue (RM million) PAX 19 5,79 4 77% 200,000 400,000 Load Factor 8 0 % 69% 69% 2 8 8 ,0 4 4 175,000 300,000 7 0 % 2 17,73 1 14 9 ,10 4
Slide 8: Strong Ancillary Income Growth
Strong Ancillary Income Growth AirAsia Ancillary Income Growth Ancillary Income Target Ancillary Income (RM million) Spend / pax 36.2 Actual Target 52 140 35. 0 29.0 40 120 27.0 130 30. 0 36 100 23.1 22.1 25. 0 29 17.8 95 80 15.2 15.1 15.7 91 20. 0 60 12.0 13.3 70 74 15. 0 40 50 10. 0 37 42 41 20 26
Slide 9: Balance Sheet Cash Rich
Balance Sheet Cash Rich Net Gearing (Net Debt/ Equity) 3.8 3.7 Capital Fuel Hedge 3.5 Raising Unwinding 3.1 2.6 1.9 1.6 Q1- Q2- Q3- Q4- Q1- Q2- Q3- 2008 2008 2008 2008 2009 2009 2009 Raised RM505 million capital – issued 380 million shares @ 16% of issued paid up capital – reduced net gearing level
Slide 10: The Real "Gearing" is Low
The Real “Gearing” is Low Malaysia Gearing on a Standalone Basis RM million Shareholders Equity 2,587 Net debt 6,688 Aircraft debt related to Thailand and Indonesia (2,028) Debt specific for Malaysia 4,668 Net Gearing 1.80 As the associates take on aircraft into their balance sheet – Thailand and In
Slide 11: Route Network Constantly Growing
Route Network Constantly Growing AirAsia Group Route Network AirAsia Group Routes 129 104 75 65 52 26 6 11 2002 2003 2004 2005 2006 2007 2008 NOW Note: Years represent calendar year end, “Now” as of 20 Nov ’09 Number of routes includes AirAsia X services Expanding the Hub Network Penang (established
Slide 12: India Beckons
India Beckons 1.1 billion people Existing US$3.1 trillion economy – Kuala Lumpur to Trichy (2x day) is Amritsar ± 20 potential airports AirAsia’s top ten profitable route Launched Delhi – Kuala Lumpur to Kolkata – Kuala Lumpur to Kochi – Kuala Lumpur to Trivandrum Kolkata Coming up – Kuala Lumpur to
Slide 13: Realigned Fleet Schedule to Achieve Optimal Growth and Operational Requirements
Realigned Fleet Schedule to Achieve Optimal Growth and Operational Requirements AirAsia Group Net Fleet Size Capacity (ASK) Growth Projection Boeing 737-300 Malaysia Thailand Indonesia Airbus A320 23% 20% 21% 12 19 173 175 149 11% 12% 125 9% 101 86 70 56 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015
Slide 14: Best Airline in Asia Pacific – AGAIN
Best Airline in Asia Pacific – AGAIN AirAsia and AirAsia X jointly won the coveted “Airline of the Year” awarded by Centre for Asia Pacific Aviation – first airline to win this award back-to-back (2008 & 2009) World’s best low cost carrier, awarded by Skytrax 13
Slide 15: Result Commentary - Third Quarter 2009
Result Commentary - Third Quarter 2009
Slide 16: Capacity Rollout Matches Demand
Capacity Rollout Matches Demand Capacity Rollout (ASK million) Revenue / ASK (sen) +13% Average fare drop is offset by higher 5,449 ancillary income contribution 4,833 Average stage length reduced by 6% Q3-2008 Q3-2008 14.2 Load Factor (%) -11% 12.6 75.4% 75.4% Q3-2008 Q3-2009 Q3-2008 Q3-2009 The op
Slide 17: Result Commentary - 9 Months 2009
Result Commentary - 9 Months 2009
Slide 18: Summary of 9 Months Result
Summary of 9 Months Result 9 Months Ended: 30 September Jan-Sep 2009 Jan-Sep 2008 ∆ (%) Revenue (RM’000) 2,010,134 1,802,148 12% EBITDAR (RM’000) 977,331 447,198 119% Core Operating Profit (RM’000) 328,233 (59,348) n/a EBITDAR Margin 48.6% 24.8% 23.9 p.p.t Core Operating Profit Margin 16.3% -3.3% n/
Slide 19: Outlook
fur Asia Outlook
Slide 20: Demand Remains Robust
Demand Remains Robust % Total seats sold as of 18 November 75% 2009 67% 2008 45% 43% 32% 26% 24% 19% Nov Dec Jan Feb AirAsia Berhad 2009 2008 ∆% Seats sold in first quarter 3,147,609 2,611,556 21% Seats sold in second quarter 3,519,486 2,835,671 24% Seats sold in third quarter 3,590,744 3,018,395 19
Slide 21: Summary
Summary Challenging environment, but AirAsia is well placed to take advantage – airports are offering attractive deals in return for growth – other airlines are not introducing new routes, thus making it easier for AirAsia to expand Managing risk – hedged approximately 20% of Q4-2009 fuel requiremen
Slide 22: Appendix
firffsia Appendix
Slide 23: Fleet Composition (30 September 2009)
Fleet Composition (30 September 2009) Number of Aircraft Total Airbus A320 Boeing 737 Malaysia 47 45 2* Thailand 18 10 8 Indonesia 16 9 8 Group Total 82 64 18 * Boeing 737-300 is awaiting to be sold off, these aircraft are not used for operations 22
Slide 24: Cost Breakdown – Third Quarter
Cost Breakdown –Third Quarter Cost Breakdown Jul-Sep 2008 Change Jul-Sep 2009 (US cents / ASK) (restated) y-o-y Staff Costs 0.36 0.36 0% Fuel and Oil 1.37 2.73 -50% User & Station Charges 0.29 0.23 23% Maintenance and Overhaul 0.15 0.12 23% Aircraft Lease Rental 0.15 0.13 13% Depreciation & Amortisa
Slide 25: Cost Breakdown – 9 months
Cost Breakdown – 9 months Cost Breakdown Jan-Sep 2008 Change Jan-Sep 2009 (US cents / ASK) (restated) y-o-y Staff Costs 0.33 0.36 -9% Fuel and Oil 1.15 2.38 -52% User & Station Charges 0.23 0.15 55% Maintenance and Overhaul 0.16 0.14 19% Aircraft Lease Rental 0.16 0.15 5% Depreciation & Amortisation