Capital A Berhad · MYX:CAPITALA
Capital A Berhad — Q4 2022 Earnings Presentation
30 slides from Capital A Berhad's earnings presentation, Feb 28, 2023
Slide 1: 4Q22 Financial Results Presentation
4Q22 Financial Results Presentation 28 February 2023
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: Key Highlights for 4Q22
Key Highlights for 4Q22 ● First positive Net Profit of RM172 mil after 13 quarters, exceeding the pre-Covid performance of 4Q19. ● Revenue of RM2.4 bil (77% of 4Q19) and EBITDA of RM489 mil (108% of 4Q19), even when operating only 84 aircraft (56% of 2019 fleet). ● Target to submit a holistic PN17 r
Slide 4: Capital A 4Q22 Performance
Capital A 4Q22 Performance First net profit since pandemic; Revenue up 188% and EBITDA up 240% YoY 4Q21 - 4Q22 REVENUE MOVEMENT (RM million) ● Revenue grew to RM2.4 bil, up 188% or more than 2x of 4Q21. ○ Due to continuous upward trend in travel resurgence. ○ Led to the revenue increase for all busi
Slide 5: Aviation Group 4Q22 Highlights
Aviation Group 4Q22 Highlights Revenue up 15% QoQ, representing 66% of pre-pandemic level REVENUE RM million Recovery 52% Recovery 66% 4Q19 4Q21 3Q22 4Q22 FY19 FY21 FY22 ● Aviation quarterly revenue was RM2.1 bil, achieved 66% recovery. ● Average fare of RM247 surpassing 3Q22 of RM233 and 4Q19 of RM
Slide 6: Aviation Group 4Q22 Highlights
Aviation Group 4Q22 Highlights 66% of pre-pandemic revenue but EBITDA of RM598 mil already exceeding 4Q19 EBITDA RM million Recovery 35% 77% from Pre-Covid level 188% 4Q21 FY21 4Q19 3Q22 4Q22 FY19 FY22 ● Achieved quarterly and yearly EBITDA positive of RM598 mil and RM587 mil. ● Average fuel price s
Slide 7: Capacity and passenger recovery
Capacity and passenger recovery 60% of the pre-Covid capacity; international capacity have yet to catch up Pre-Covid Pre-Covid Level Level Capacity to Pax carried to pre-Covid 33% 40% 52% 61% pre-Covid 32% 44% 55% 61% Operating AC 72 90 103 126 Load Factor 75% 82% 86% 87% Overall, 60% of pre-Covid l
Slide 8: Ancillary income
Ancillary income RM43.40 APP and more to come as int’l flights resume and better personalisation 17% ● CHECKED BAGGAGE: up 21% QoQ to RM207 mil. ○ Higher take up rate and fees on international flights ○ Dynamic pricing that optimizes pricing & take-up rate. ● SEAT SELECTION: increased 11% QoQ to RM3
Slide 9: RASK and CASK
RASK and CASK RASK remains high, above FY19 level with CASK showing a downward trend in 2022 2% 62% 73% 25% 2.06 ● RASK down slightly by 2% QoQ to USc 5.18 as increase in ASK ● CASK of USc 5.04, down 25% QoQ due to drop in fuel price exceeded improvement in revenue by 1%. alongside strengthening of
Slide 10: CASK ex-Fuel
CASK ex-Fuel Tumbled 32% to USc 2.83; Operational CASK e-fuel of USc 2.27 is lower than 2019 level 73% Operational CASK ex-fuel* 32% 3.46 3.03 3.22 2.27 ● CASK ex-fuel of USc 2.83, down 32% QoQ, reaching close to 4Q19 level of USc 2.71. ○ Driven by lower maintenance and other operating costs offset
Slide 11: Aviation Outlook
Aviation Outlook Gearing to return to normalcy to pre-pandemic levels Improving customer experience ● Ask Bo to provide a proactive, attentive and Fleet and capacity recovery hassle-free personalised customer service. Financial ● Re-activate 150 aircraft by end Q1, fully ● Delay guarantee insurance
Slide 12: Fleet Activation
Fleet Activation Aim to reactivate aircraft by 3Q23 and position for future growth 2023 fleet reactivation plan ● Aim to reactivate 150 aircraft by March. ● Entire A320 fleet of 204 A320 aircraft and 1 A330 in MAA to return to service by 3Q2023. 12
Slide 13: Order book
Order book 362 order book that can fuel growth Total 362 ● Well positioned for growth with a total of 362 aircraft in orderbook to be delivered in the next 12 years. ○ The market is experiencing shortage of aircraft in the short term as supplier is experiencing 28 20 constraints mainly due to Covid
Slide 14: Strong start to China reopening
Strong start to China reopening Gearing to deploy capacity to meet pent up demand ● Sold 100,000 seats since sale of commercial flight into China started in Jan 2023; strong pent up demand. ● Inaugural commercial flight (Kuala Lumpur-Guangzhou) commenced in Feb 2023 with a 100% load factor. ● MAA an
Slide 15: Asia Digital Engineering Highlights
Asia Digital Engineering Highlights First full year profitability of RM61 mil; next to focus on third party expansion REVENUE EBITDA RM million RM million 192% 522% Hangar Checks AEROTRADE Sale Qty 151% 41 ac 58% QoQ 33K 22% QoQ (as of Nov 2022) 613% 4Q21 4Q21 4Q22 FY21 FY22 4Q22 FY21 FY22 4Q22 Perf
Slide 16: Teleport Highlights
Teleport Highlights EBITDA improves; strong traction in e-Commerce deliveries REVENUE EBITDA RM million RM million 11% Tonnage No. of Deliveries 4Q21 FY21 FY22 31,158 26% YoY 17% QoQ 3.158 million 433% YoY 16% QoQ 5% 4Q22 Yield (RM/kg) 136% 3.78 25% YoY 28% QoQ 4Q21 4Q22 FY21 FY22 61% 4Q22 Performan
Slide 17: airasia Super App Highlights
airasia Super App Highlights Travel and Delivery vertical gained momentum REVENUE 156% EBITDA RM million RM million 99% Monthly Active Users (MAU) Gross Booking Value (MYR) 12mil 18% QoQ 42% YoY 3,236mil 14% QoQ 279% YoY FY21 FY22 (in Dec 2022) 41% 4Q21 4Q22 No. of Transactions 6mil 13% QoQ 86% YoY
Slide 18: BigPay Highlights
BigPay Highlights Healthy growth in carded users and users spending improved REVENUE EBITDA RM million RM million 47% 4Q21 4Q22 FY21 FY22 Carded Users (cumulative) Total Users (cumulative) 80% 1.31mil 4% QoQ 27% YoY 3.66mil 3% QoQ 32% YoY 38% 4Q21 4Q22 FY21 FY22 4Q22 Performance 4% Outlook ● Revenue
Slide 19: Reorganisation of businesses
Reorganisation of s hla s o f Ik s res er es rog nsf ogr InP Tra In Pr AIRASIA LOGISTICS RED AVIATION DIGITAL SERVICES r oce f Gr o er ess nsf rogr REDBEAT r a T In P AIRASIA CAPITAL BRAND CO. (“ABC”) Update: 1. Maintain aviation group solely for airlines business 2. Separated aviation services from
Slide 20: Indicative Timeline for PN17 Regularisation Plan
Indicative Timeline for PN17 Regularisation Plan Target completion by 3Q2023 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Jul 2023… ● Bursa approval ● Shareholders’ approval ● Implementation Submission for approval of Regularisation Plan ● Concept submission of the Regularisation P
Slide 21: Q&A
Q&A 21
Slide 22: Thank You
THANK YOU 22
Slide 23: Appendix
APPENDIX
Slide 24: 4Q22 Financial Highlights
4Q22 Financial Highlights 4Q191 4Q21 1Q22 2Q22 3Q22 4Q22 Up 33% from pre-Covid level vs pre-covid 73% 4Q21 1Q22 1 4Q19 2Q22 3Q22 4Q22 4Q191 4Q21 1Q22 2Q22 3Q22 4Q22 Group Revenue of RM2,368 mil increased Group EBITDA of RM487 mil improved by 240% YoY, Group adjusted EBT profit of RM175 mil 188% YoY,
Slide 25: Capital A FY22 Performance
Capital A FY22 Performance Revenue grew 262% YoY and EBITDA positive signalling recovery FY21 - FY22 REVENUE BRIDGE (RM million) ● FY22 revenue of RM6.6 mil ○ Up 262% YoY or surged to more than 3x from FY21. ○ Driven by returning travel demand in the 2H22. ○ Teleport revenue declined slightly as the
Slide 26: Capacity recovery
Capacity recovery 60% of the pre-Covid capacity; international capacity have yet to catch up Pre-Covid Pre-Covid Level Level Capacity to Capacity to pre-Covid 38% 44% 53% 57% pre-Covid 31% 33% 48% 72% Operating AC 34 45 47 53 Operating AC 23 25 35 42 Pre-Covid Pre-Covid Level Level Capacity to Capac
Slide 27: 4Q22 Group Aviation Performance
4Q22 Group Aviation Performance QUARTERLY PERFORMANCE FULL YEAR PERFORMANCE Key Indicators 4Q22 3Q22 4Q21 YoY QoQ 4Q19 Recovery FY22 FY21 YoY FY19 Recovery Passengers 7,812,089 7,128,274 2,724,679 187% 10% 13,169,228 59% 24,247,725 4,812,364 404% 51,559,070 47% Carried Capacity 9,111,309 8,286,341 3
Slide 28: 4Q22 Digital Performance
4Q22 Digital Performance Key Indicators 3Q22 4Q22 QoQ 4Q21 YoY Total Users (cumulative) 3,535,886 3,657,960 3% 2,766,694 32% Carded Users (cumulative) 1,262,523 1,311,867 4% 1,035,376 27% Monthly Active Users (MAU)('000) 9,537 11,449 20% 8,113 41% No. of Transactions ('000)* 5,321 6,010 13% 3,232 86
Slide 29: FY22 YTD Digital Performance
FY22 YTD Digital Performance Key Indicators FY22 FY21 YoY Monthly Active Users (MAU)('000) 10,588 4,867 118% No. of Transactions ('000) 18,298 6,382 187% Gross Booking Value (RM) ('000) 8,850,101 1,644,375 438% Tonnage (tonnes) 105,572 101,179 4.3% Yield (RM/kg) 3.97 4.91 -19% No. of Delivery ('000)
Slide 30: Sustainability and Our Net Zero Strategy
Sustainability and Our Net Zero Strategy Fleet Management ● Young fleet of avg 8.9 years ● Upgrade to A321neos from 2024 cuts emissions per seat by 20% Operational Eco-Efficiency ● Industry-leading programme resulting in lowest CO2/ASK in Asia Pacific ● Avoided 11,175 tonnes of CO2 (2021) = 186,250