Starlux Airlines Co., Ltd. · TWSE:2646
Starlux Airlines — Investor Conference 2022
49 slides from Starlux Airlines's conference presentation, Sep 28, 2022
Slide 1: Investor Conference
Stock Symbol:2646 Investor Conference 2 8 / S E P/ 2 0 2 2
Slide 2: Agenda
Agenda 1、About us 2、Strategies 3、Operational Performance 4、Future Prospects
Slide 3: About Us
ABOUT US
Slide 4: About us: Facts
About us Facts Established Authorized Paid-up Flight Fleet Employee in Capital Capital Routes USD USD 2018 1 billion 604 million 13 12 A/C 1,909 Remarks：Number of fleets and employees are updated till August 2022. Paid-up Capital are approved on September 6, 2022. Route information is updated till O
Slide 5: Milestones
About us M i l e stones The Beginning AOC Sustainability Company founder, K.W. Chang, Air Operator Certificate was granted • Flight Operations Center opened. formally announced to establish by CAA of Taiwan in December. • Received ISO 27001 & 27701 certification STARLUX Airlines in November. • Launc
Slide 6: Our Vision
About us Our Vision A team of professionals and challengers, holding itself to the highest standards down to the most meticulous detail. An airline that never stops improving to provide superlative benefits to associates and exceed the expectations of customers.
Slide 7: The Leadership Team
About us The Leadership Team Title Years Title Years Chairman Chief Corporate Safety Officer 27 26 K.W. Chang Brian Lin Chief Executive officer Executive Vice President of FOD 31 32 Glenn Chai Danny Lee Chief Strategy Officer Executive Vice President of EMD 18 30 Simon Liu Tom Lien Vice President of
Slide 8: Strategies
S T R AT E G I E S
Slide 9: Steady growth of passenger traffic with 6% CAGR 2015-2019
Strategies St e a dy grow t h of pa s s e nge r t ra f f ic w it h 6 % C AGR be t w e e n 2 0 1 5 - 2 0 1 9 10 thousand ppl Pax Traffic of TPE Airport 6,000 Passenger 4,869 5,000 4,654 4,230 4,488 4,000 3,847 • TPE Airport handled 48.69M passengers in 3,000 2019. 2,000 • Passenger traffic is estimat
Slide 10: Passenger: 2019 World Airline Ranking
Strategies Pax Traffic Seat Capacity Passenger Rank Airline RPK (million) ASK (million) (million) 1 American Airlines Group 388,174 458,707 215 2019 … World Airline 5 Emirates Airlines 288,148 367,153 56.2 … Ranking 13 Qatar Airways 170,463 238,426 32.4 … Passenger 18 Singapore Airlines 140,999 171,
Slide 11: Comparison of 2019 Pax Traffic (RPK)
Strategies Comparison of 2019 Pax Traffic (RPK) Unit：RPK(million) 阿聯酋 Emirates Airlines 32% 288,148 卡達 Qatar Airways 54% 170,463 新加坡 Singapore Airlines 65% 140,999 Cathay Pacific 國泰 Group 68% 134,397 國籍A+B Taiwan Carrier 91,216 A+B 0 50,000 100,000 150,000 200,000 250,000 300,000 11
Slide 12: TPE Airport has great potential in transit
Strategies T PE Airport ha s gre a t pot e nt ia l in t ra ns it Unit: million ppl TPE DXB HKG SIN Population 23.60 9.89 7.52 5.85 in 2019 Pax Traffic 48.69 86.40 71.54 68.30 in 2019 Inbound Traveler 11.86 16.73 23.75 19.10 in 2019 Percentage of 11% 57% 30% 27% Transit Traffic* Source：Reports from T
Slide 13: Cargo volume CAGR over the past years
Strategies C AGR re a c he d 1 3 .5 % ov e r t he pa s t 3 y e a rs Cargo Volume of TPE Airport Unit: 10 thousand tons Cargo 300 281 • Since 2019, Taiwanese businesses that used to 250 234 operate overseas have invested 1.7 trillion in 218 Taiwan, resulting in rising demand for high-tech 200 supply
Slide 14: Cargo: World Airport Ranking
Strategies Rank Airline Cargo Volume (tons) 2021 1 Hong Kong (HKG) 5,025,495 World Airport 2 Memphis (MEM) 4,480,465 Ranking 3 Shanghai (PVG) 3,982,616 4 Anchorage (ANC) 3,555,160 5 Incheon (ICN) Cargo 6 Louisville (SDF) 3,329,292 3,052,269 7 Taipei (TPE) 2,812,065 8 Los Angeles (LAX) 2,691,830 9 To
Slide 15: Focus on Strategically-Targeted Markets
Strategies Cross-Pacific Transit Market Focus on S tra te g i c a l l y-Ta rg e te d Maximize Taiwan’s location advantage to develop the transit market between M a rk e ts North America and South-East Asia with a population of one billion people. Business Travel Market Cargo Market Target high-yield
Slide 16: Fleet, Tech., Network, Safety, Brand, Talent, Service enablers
Fleet Introduce eco-efficient and energy-saving Strategies next-generation fleet. A321neo / A330neo / A350 Techonolgy Set up high-tech software Network and hardware to facilitate Fleet Maximize Taiwan’s location advantage to develop regional operations and enhance network and transit market. service
Slide 17: Fleet
Fleet Tech. Network Fleet Safety Brand Talent Service 17
Slide 18: New-Generation Fleet Delivery Plan
Fleet New -Generation Fleet Delivery Plan Phase I A321neo Fleet size will be 39 13 A330neo 8 A350-900/1000 18 Phase II Fleet size will increase to over 50 based on market demand 18
Slide 19: Fleet Plan of 2022
Fleet Fleet P lan of 2022 Aircraft Type By 2022 A321neo 13 A330neo 4 A350-900 2 TOTAL 19 *20 more aircraft will be delivered by 2027 based on market demand, making the fleet size to reach 39 in total 19
Slide 20: Advantages of New-Generation Fleet
A d va n t a g e s o f Ne w - G e n e r a t i o n F l e e t 2. Reduction in Carbon Emissions • 20%~25% carbon emissions vs previous generation aircraft. 1. Cost Saving • Fuel：20~25% fuel burn per seat vs previous generation aircraft. 3. Comfort Enhancement • Maintenance：Advanced materials and design
Slide 21: Network
Fleet Tech. Network Network Safety Brand Talent Service 21
Slide 22: Make use of Taiwan's location advantage
Network Beijing Hokkaido M a k e u s e o f Ta i w a n ’s Seoul Tokyo l o c a t i o n a d va n t a g e t o Shanghai Osaka c re a t e h u b - a n d - s p o ke n e t w o rk Guangzhou Taiwan Taiwan is located at the center of Hong Kong Hanoi Asia Pacific. Yangon Manila Departing from Taiwan, one can Ban
Slide 23: Make use of Taiwan's location advantage (long-haul)
Network 二、台灣民航市場商機無限 New York Washington DC Chicago M a k e u s e o f Ta i w a n ’s Casablanca Toronto Huston (Morocco) London Paris Vienna Seattle Los Angeles San Francisco l o c a t i o n a d va n t a g e t o Algiers (Algeria) c re a t e h u b - a n d - s p o ke Cairo n e t w o rk Hawaii Taipei •
Slide 24: Network destinations
Network 13 destinations (as planned till 28OCT ) 24
Slide 25: Future Network Plan
Network Futur e N etwor k P lan Europe Northeast Asia China North America Southeast Asia 2022-2024 Focus on network expansion 2024 Oceania Increase frequencies onwards 25
Slide 26: Brand
Fleet Tech. Network Brand Safety Brand Talent Service 26
Slide 27: Brand Identities
Brand Brand Identities Segmentation Provide high-quality service to meet Execution Goals the demand for a boutique airline in Taiwan. Targeting Geared toward business and luxury travelers who value an exceptional flying experience 1. Attract business and luxury travelers. more than a low ticket pric
Slide 28: Service
Fleet Tech. Network Service Safety Brand Talent Service 28
Slide 29: A321neo - A Journey of Quality and Warmth
Full-flat seats in Business Class Business Class equipped with 15.6-inch 1080p screen Personal IFE (Inflight Entertainment System) A321neo — A Jo u r n e y o f Qu a l i t y a n d W a r m t h Free Wi-Fi services
Slide 30: A330neo - A Memorable Comfortable Experience
Direct aisle access in Business Class Bluetooth connectivity Backrest with tablet and cup holder A330neo — A M e m or a b l e C om f or t a b l e E x p e r i e n c e 6-way adjustable headrest 30 for Economy Class
Slide 31: Services for FIVE Senses
Service Services for FIVE Senses STARLUX exclusive in-flight music was Sound created by a world-renowned composer, Peter White. Sight Taste The ground and flight crew uniforms were Inflight meals are created by Sean Yin, a provided by Longtail, prominent fashion Hutong Yakiniku, and designer in Taiw
Slide 32: Talent
Fleet Tech. Network Talent Safety Brand Talent Service 32
Slide 33: Talent Development
Talent Talent Development • STARLUX was qualified as an aviation Cadet Pilots maintenance training organization in February 2022. • The first batch of maintenance technicians have began training in Qualification of the maintenance training organization September 2022. National Kaohsiung University o
Slide 34: Safety
Fleet Tech. Network Safety Safety Brand Talent Service 34
Slide 35: Various Safety Investments
Safety Various Safety Investments Cabin Crew Training Full Flight Simulators Facilities Ground Vehicles with Collision Avoidance System Maintenance Hangar 35
Slide 36: Multiple Safety Certifications
Safety M ultiple Safety Certifications 1 ISO 27001 & ISO 27701 Security & Privacy Information Management 2 WTTC stamp The Safe Travels Stamp Class A Certification of Taiwan Intellectual Property 3 Management System 4 ISO 9001 : 2015 Quality Management System 5 IATA Operational Safety Audit Currently
Slide 37: Tech.
Fleet Tech. Network Tech. Safety Brand Talent Service 37
Slide 38: Technology Advancement
Technology Technology Advancement Electronic Fuel Ultramain Sheet System - Maintenance (EFSS) Planning Integration - Data Analysis - Material - Cost Reduction Management - Digitalization Electronic Flight Bag Lido Salesforce (EFB) - Sales Integration - Evaluate the Calculating aircraft - Customer Op
Slide 39: Operational Performance
O P E R AT I O N A L P E R F O R M A N C E
Slide 40: Operating Revenue
Operational Performance Operating Revenue Unit：NT$ Thousand 40
Slide 41: Positive Growth of YoY and MoM ratio for 4 consecutive months
Operational Performance P ositive Grow th of YoY and M oM ratio for 4 consecutive months Unit：NT$ Million 300 350% 300% 250 250% 200 200% 150% 150 100% 100 50% 0% 50 -50% 0 -100% Jan Feb Mar Apr May Jun Jul Aug 2022 operating revenue YOY % MOM% 41
Slide 42: Statements of Comprehensive Income from 2019 to June 2022
Operational Performance Statements of Comprehensive Income from 2019 to June 2022 Unit：NT$ Thousand 42
Slide 43: Balance Sheets from 2019 to June 2022
Operational Performance Balance Sheets from 2019 to June 2022 Unit：NT$ Thousand 43
Slide 44: Future Prospects
a 4 STARLUX \FUTURE PROSPECTS”
Slide 45: Global Passenger and Cargo Market Overview
Future Prospects Global Passenger and Cargo M arket Overview Passenger： Global Cargo Demand Global passenger market continues 0.8% recovering as travel restrictions loosen. By June this year, the demand has reached almost 70% of the pre-crisis level. -29.2% Global Passenger Demand Cargo： Global dema
Slide 46: Passenger traffic rebounds as Taiwan gradually reopens
Future Prospects Pa s s e n g e r t r a f f i c r e b o u n d s a s Ta i w a n g r a d u a l l y r e o p e n s Less quarantine time + Open for transit PAX No. of JUL=356,000 (YoY: 383%) 1. Taiwan opens its boarders for Outlook travel Passenger Traffic and YoY Growth Rate of TPE Airport 2. Pent-up tr
Slide 47: Cargo volume and rate remain above pre-crisis level
Future Prospects C a r g o vo l u m e a n d r a t e r e m a i n a b o ve p r e - c r i s i s l e ve l (10 thousand tons) Cargo Volume of TPE Airport 30 1. Living with COVID-19 approach 28 Outlook stabilizes supply chains 26 2. Cargo rates remain high due to 24 capacity constraint 22 20 18 16 14 Russ
Slide 48: Preparation for Post-Covid-19 Era
Future Prospects Preparation for Post-Covid-19 Era Fleet Manpower Equipment Sales READY To operate + + + 600 flights per month 」 48
Slide 49: STARLUX Airlines: To grow with you together
To grow with you together STARLUX Airlines 1 Vision and resolution of the founder 2 Aviation experts that set the standard in the industry 3 Clear strategies 4 Highly efficient new-generation fleet 5 Exceptional innovation ability