Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Shareholder Meeting (June 2020)
27 slides from Capital A Berhad's shareholder meeting presentation, Jun 28, 2020
Slide 1: AirAsia Group Berhad 3rd Annual General Meeting
AIRASIA GROUP BERHAD 3RD ANNUAL GENERAL MEETING intan GIR ADE GIPASIA | airasia.com toricrey PG Olax
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: 2019 Key Highlights
2019 Key Highlights Carried 14% more pax Revenue up 11% ■ Won World’s Best Low-Cost Airline award for the FY19 83.5 mil FY19 RM11.9bn 11th consecutive year at Skytrax FY18 73.1 mil FY18 RM10.6bn ■ Positive year for airlines, due to remarkable improvement in PAA and IAA. IAA strengthened Group EBITDA
Slide 4: Strategies in 2020 and Beyond
Strategies in 2020 and Beyond Leaner airline operations and setting the foundation moving into 2021 ■ Prepared to rely on domestic operations if borders remain closed ■ Better fare environment as seen in 1Q20 and 2Q20. Rational pricing by competitors since 4Q19 ■ Extensive cost reduction exercise; t
Slide 5: Pivoted the airline into a digital lifestyle company, anchored on travel
Pivoted the airline into a digital lifestyle company, anchored on travel AirAsia Group Airline AOCs F&B Engineering Ground Platform & Logistics & Financial Rewards Handling SuperApp eCommerce Services Food AirAsia Shop 5
Slide 6: Airline seeing recovery in domestic demand
Airline seeing recovery in domestic demand Planned domestic ◾AirAsia Malaysia (MAA) has resumed ◾AirAsia Thailand (TAA) reinstated capacity (vs 2019 capacity) most domestic routes, as well as domestic flights in phases since May KL-Singapore under the RGL scheme ◾TAA operated close to 75% of pre-Covi
Slide 7: All-in-One digital travel and lifestyle ecosystem
All-in-One digital travel and lifestyle ecosystem ■ Our travel and lifestyle superapp ■ Transformed from delivering cross-border ■ The centre platform for all our brands e-commerce to last mile deliveries, remain ■ Launched direct sourced hotels and SNAP focused on efficiency, accuracy and fast deli
Slide 8: Thank You
THANK YOU RedQ, Sepang, Malaysia www.airasia.com/aagbir [email protected] 8
Slide 9: Responses to Questions from Minority Shareholder Watchdog Group (MSWG)
RESPONSES TO QUESTIONS FROM MINORITY SHAREHOLDER WATCHDOG GROUP (MSWG) 9
Slide 10: Responses to MSWG Strategic and Financial Matters Q1
Responses to MSWG Strategic and Financial Matters Q1 By organic serendipity, digitalisation of AirAsia has not just allowed it to meet its initial objectives; it has led to the Group becoming more than just an airline. Other than the Airlines business, the Group now has a strong and growing digital
Slide 11: Responses to MSWG Strategic and Financial Matters Q2
Responses to MSWG Strategic and Financial Matters Q2 A highlight was to welcome AirAsia’s first Airbus A321neo aircraft, which offers a 27% to 31% increase in seat capacity while providing more than 10% in fuel savings. AirAsia India also strengthened its position as it awaits being licensed to fly in
Slide 12: Responses to MSWG Strategic and Financial Matters Q3
Responses to MSWG Strategic and Financial Matters Q3 Although in last year’s annual report AirAsia had mentioned expanding to Vietnam, plans towards this end have been put on hold until a suitable partner is found. Meanwhile, AirAsia is still very interested in establishing a presence in Indochina,
Slide 13: Responses to MSWG Strategic and Financial Matters Q4
Responses to MSWG Strategic and Financial Matters Q4 In the earlier days, AirAsia launched AirAsia Expedia (AAE), Asian Aviation Centre of Excellence (AACE) and BIG Loyalty, followed by BigPay, Ground Team Red (GTR) and T&Co, among others. Some of the earlier businesses, such as AAE and AACE, have b
Slide 14: Responses to MSWG Strategic and Financial Matters Q5
Responses to MSWG Strategic and Financial Matters Q5 Teleport, the end-to-end logistics player (previously RedCargo Logistics) is disrupting the cargo industry and empowering social commerce through Teleport Social. While the global cargo industry receded 4.4% in 2019, Teleport’s tonnage increased b
Slide 15: Responses to MSWG Strategic and Financial Matters Q6
Responses to MSWG Strategic and Financial Matters Q6 For on-ground services, AirAsia is collaborating with Google on ODIN and RedEye. ODIN, or Operational Decision Intelligence, is a tool to help the flight operations team realise savings and revenue generation opportunities. With the new platform, t
Slide 16: Responses to MSWG Strategic and Financial Matters Q7
Responses to MSWG Strategic and Financial Matters Q7 As for fuel price volatility, AirAsia had hedged 65% of its Brent requirement for the year at an average price of USD62.77 per barrel, which was lower than the market average of USD64.16 per barrel in 2019. (Page 89 of AR) How much has been hedged
Slide 17: Responses to MSWG Strategic and Financial Matters Q8
Responses to MSWG Strategic and Financial Matters Q8 Further strengthening its capital, AirAsia has received deferrals from its lessors and is hopeful of further extensions of its aircraft operating lease payments. While a major portion of its fuel hedge contracts have been restructured, it continue
Slide 18: Responses to MSWG Strategic and Financial Matters Q9
Responses to MSWG Strategic and Financial Matters Q9 Segmental information reporting was presented by geographical regions and not by business segments. (Page 313 of AR) Why was the segmental reporting not presented by business segments as the Group has been rapidly growing its non-airline businesse
Slide 19: Responses to MSWG Strategic and Financial Matters Q10
Responses to MSWG Strategic and Financial Matters Q10 The following measures had been taken, with further additional efforts to be taken: i) The Group and the Company plan to raise capital of up to RM1.4 billion as and when required to strengthen its equity base and liquidity and expect successful i
Slide 20: Responses to MSWG Strategic and Financial Matters Q11
Responses to MSWG Strategic and Financial Matters Q11 AirAsia has ongoing deliberations with a number of parties for joint-ventures and collaborations that may result in additional third-party investments in specific segments of the group's business. Barring any reversal of flight resumption plans and
Slide 21: Responses to MSWG Strategic and Financial Matters Q11 (cont'd)
Responses to MSWG Strategic and Financial Matters Q11 AirAsia has ongoing deliberations with a number of parties for joint-ventures and collaborations that may result in additional third-party investments in specific segments of the group's business. (cont’d) Barring any reversal of flight resumption
Slide 22: Responses to MSWG Strategic and Financial Matters Q11 (cont'd)
Responses to MSWG Strategic and Financial Matters Q11 AirAsia has ongoing deliberations with a number of parties for joint-ventures and collaborations that may result in additional third-party investments in specific segments of the group's business. (cont’d) Barring any reversal of flight resumption
Slide 23: Responses to MSWG Strategic and Financial Matters Q11 (cont'd)
Responses to MSWG Strategic and Financial Matters Q11 AirAsia has ongoing deliberations with a number of parties for joint-ventures and collaborations that may result in additional third-party investments in specific segments of the group's business. (cont’d) Barring any reversal of flight resumption
Slide 24: Responses to MSWG Corporate Governance Matters
Responses to MSWG Corporate Governance Matters Q1 Under the Malaysian Code on Corporate Governance (MCCG), Practice 4.5 stipulates that the board discloses in its annual report the company’s policies on gender diversity, its targets and measures to meet those targets. For Large Companies, the board
Slide 25: Responses to MSWG Corporate Governance Matters
Responses to MSWG Corporate Governance Matters Answer The Board has established a Board Diversity Policy which ensures a broad dimension of diversity is to Q1 present to guarantee diverse viewpoints. In particular, the Board places emphasis on recruiting women directors to achieve an optimum and bal
Slide 26: Responses to MSWG Corporate Governance Matters
Responses to MSWG Corporate Governance Matters Q2 Noor Neelofa binti Mohd Noor, the Independent Non-Executive Director, attended 5 out of 6 Board meetings during FY2019. However, as a member of the Safety Review Board Committee she did not attend a single Committee meeting out of 4 meetings held dur
Slide 27: Thank You
THANK YOU RedQ, Sepang, Malaysia www.airasia.com/aagbir [email protected] 27
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