Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — FY2017 Earnings Presentation
27 slides from Capital A Berhad's earnings presentation, Feb 27, 2018
Slide 1: AirAsia Earnings Announcement 4Q2017 & Full Year 2017
AIRASIA EARNING ITS NAME 4 - EARNINGS ANNOUNCEMENT 4Q2017 & FULL YEAR 2017 : 27 FEBRUARY 2018 |
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: Full Year 2017 Highlights (Consolidated Group)
FULL YEAR 2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 1. Financial performance: 2016 Change Revenue (RM billion) 9.71 8.51 +14% Passengers carried (Consolidated AOCs) (million) 3911 3511 +11% Total Group Passengers Carried (million) 65.7 56.6 +16% Load Factor (%) 88 87 +Ippt Net Ope
Slide 4: Full Year 2017 Highlights (Consolidated Group)
FULL YEAR 2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 2. One AirAsia’s initiative, AOCs moving in the right direction MYR (million) Malaysia Thailand Indonesia Philippines Group Average REVENUE/AIRCRAFT/FY2017 EBITDAR/AIRCRAFT/ FY2017 EMPLOYEE/AIRCRAFT/ FY2017 REVENUE/ASK (US CENTS)
Slide 5: Full Year 2017 Highlights (Consolidated Group)
FULL YEAR 2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 4. Competition + MAS frequency reduction on 415 weekly domestic routes from 2,098 to 1,683 (reduction of 24 trunk routes) + Malindo reduced 11 weekly busiest trunk routes from KUL; frequency reduction on 18 routes (9 trunk routes
Slide 6: Full Year 2017 Highlights (Consolidated Group)
FULL YEAR 2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 8. Digital and Data Traction All AOCs incl. AAX Conversion rate: Mobile App 5.75% 3.39% 70% Website 743% 6.92% 7% Unique Users: Mobile App 107.5 mil 66.2 mil 62% Website 323.2 mil 292.1 mil 1% Mobile Device penetration: Flight se
Slide 7: 4Q2017 Highlights (Consolidated Group)
4Q2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 1. Financial performance: 4Ql6 Revenue (RM billion) 2.66 2.41 +10% Passengers carried (Consolidated AOCs) (million) 10.4 8.9 +17% Load Factor (%) 88 87 +]ppt Net Operating Profit (million) 550 447 +23% + Net operating profit of RM550 mil
Slide 8: 4Q2017 Highlights (Consolidated Group)
4Q2017 HIGHLIGHTS (CONSOLIDATED GROUP) DELIVERING OUR STRATEGY 3. All subsidiaries profitable + Indonesia - Net Operating Profit of IDR6.6 billion, capacity up by 3% YoY, Ancillary per pax of IDR 174,611 up by 1% YoY, temporary less favorable performance due to disruption of Mt. Agung in Bali throug
Slide 9: Associates Performance: AirAsia Thailand
ASSOCIATES PERFORMANCE HIGHLIGHTS AIRASIA THAILAND Change 4Ql6 YOY Passengers Carried 5,338,938 4,365,223 +22% * New unique route: Khon Kaen - Phuket Load factor (%) 88 82 +6ppt + Grew fleet to 56 for FY2017 from 51 for FY2016 * Despite a challenging year for Thailand, our Thai 9 Average Fares (THB)
Slide 10: Associates Performance: AirAsia India
ASSOCIATES PERFORMANCE HIGHLIGHTS AIRASIA INDIA hange ae YOY - + First Profitable Quarter for India, recorded Net 9, 5 Passengers Carried Melody 792132 = +79% Operating Profit of INR 144 million up 260% YoY Load factor (%) 85 86 “Ippt * New routes: 2 New routes from Bengaluru & 5 Hyderabad to Ranchi
Slide 11: 4Q2017 & FY2017 Ancillary
4Q2017 & FY2017 ANCILLARY GROUP ANCILLARY REVENUE CONTRIBUTES 20% OF TOTAL REVENUE - RM511 MILLION 4Q2017 & RM1.93 BILLION FY2017 4Q2017 * Total Group Ancillary Revenue ™! of RM511 million up 19% YoY from RM429 million in 4Q2016 * Ancillary income per pax of RM49 per pax up 2% YoY * Baggage - 48% *
Slide 12: Ancillary Revenue Target
• • • • • • • • • • • Ancillary Revenue target per pax • • RM55 • 10
Slide 13: RedBeat Ventures' Composition & Strategic Roadmap
REDBEAT VENTURES INC REDBEAT VENTURES’ COMPOSITION & STRATEGIC ROADMAP Clusters Company Products / Services Competitors %y [Travel360 |eMag, Travel Portal TripAdvisor, Airbnb, GetCraft Customer Engaging / vidi Vidi Travel Portal, Social Network |Klook, BeMyGuest, Voyagin, KK Day Ticketing & Booking
Slide 14: 2018 and Beyond
2018 AND BEYOND DELIVERING OUR FUTURE STRATEGY 1. Unlocking future values + AAC - Target sale to conclude by 31*t March 2018 + Rokki (wifi) - Target for all group fleet to be wifi-enabled * GTR - Ground handling to further reduce costs and increase efficiency for all AOCs 2. Digital and Personalisat
Slide 15: 2018 and Beyond
2018 AND BEYOND DELIVERING OUR FUTURE STRATEGY 3. Creation of new entities * Red Box (e-Commerce courier) - End to end physical delivery and warehousing * Red Cargo - New cargo agent * Rokki shop (e-Commerce website) - Duty free, market place * Santan - In-house F&B brand, T&Co * GTR - JVs in other
Slide 16: 2018 and Beyond
2018 AND BEYOND DELIVERING OUR FUTURE STRATEGY 6. Focusing on improving Customer Happiness Live Net Promoter Score (NPS) Dashboard; Customer Happiness * Real time guests feedback dashboard to assist AOCs and operations’ team to monitor and improve service performance and customer experience * Group
Slide 17: Thank You & Appendix
THANK YOU & APPENDIX
Slide 18: Airline Valuations
AIRLINE VALUATIONS PEER COMPARISONS BASED ON CONSENSUS PRICE TO EARNINGS EV/EBITDA MULTIPLE As at Feb 2018, AirAsia Berhad’s consensus is trading at * Consensus EV at RM19.6 bil, actual EV is RM21.9 bil Price-to-Earnings of 8.3x, with Net Operating ProfitofRM2 = ast Feb 2018, AirAsia Berhad is tradi
Slide 19: AirAsia's True Value
AIRASIA’S TRUE VALUE SUM OF THE PARTS STAKE VALUE (RM’ MIL) AirAsia Berhad (Consolidated) 100% 17,537 Asia Aviation Capital 100% 3,910 AirAsia X Berhad 14% 235 Tune Protect Group Berhad 14% 107 AAE Travel Pte Ltd 25% 439 AirAsia Global Shared Services Sdn Bhd 100% 2.4 Total 21,889 Source: Company da
Slide 20: Indonesia AirAsia 4Q2017 & FY2017 Income Statement
APPENDIX INDONESIA AIRASIA 4Q2017 & FY2017 INCOME STATEMENT quarter Ended: 31 December Year Ended: 31 December Jan-Dec — Jan- Dec IDR million IDR million 2017 2016 Revenue 856,347] 968,866 12 Revenue 3,761,077, 3,852,293 -2 Operating expenses: Operating expenses: Staff costs (189,791 (126,329 50% St
Slide 21: Indonesia AirAsia 4Q2017 & FY2017 Operating Statistics
APPENDIX INDONESIA AIRASIA 4Q2017 & FY2017 OPERATING STATISTICS Quarter Ended: 31December _ Oct - Dec 2017 Oct - Dec 2016 Change y-o-y| Year Ended: 31 December Jan - Dec 2017 Jan - Dec 2016 Change y-o-y| Passengers Carried 1,108,130} 1,121,830} -1% Passengers Carried 4,634,00] 4,700,353} -1% Capacit
Slide 22: Philippines AirAsia 4Q2017 & FY2017 Income Statement
APPENDIX PHILIPPINES AIRASIA 4Q2017 & FY2017 INCOME STATEMENT quarter Ended: 31 December Oct-Dec Oc 1 December PHP'O! 2017 Revenue 4771.7) 3,106,555) 54% |Revenue 15,930,159 10,814,573 AT%| lOperating expenses: lOperating expenses: | Staff costs (668,684) (501,433) 33% |- Staff costs (2,047,059)} (1
Slide 23: Philippines AirAsia 4Q2017 & FY2017 Operating Statistics
APPENDIX PHILIPPINES AIRASIA 4Q2017 & FY2017 OPERATING STATISTICS . Oct - Dec Oct - Dec -o- in- Dec Jan - Dec Quarter Ended: 31 December 2017 2016 Change y-o-y Year Ended: 31 December 2017 2016 Passengers Carried 1,535,596 1,040,817] 48% Passengers Carried 5,276,418 3,990,986 — 32% Capacity 1,732,86
Slide 24: Quarter Ended 31 March
Quarter Ended: 31 March Quarter Ended: 31 March Jan - Mar 2016 Jan - Mar 2016 RM'000 Passengers Carried 8,615,951 Revenue 2,068,227 Capacity 10,153,968 Seat Load Factor 85% Operating expenses: RPK (million) 11,207 - Staff costs (286,663) - Depreciation of property, plant and equipment (193,914) ASK
Slide 25: Quarter Ended 30 June
Quarter Ended: 30 June Quarter Ended: 30 June Apr - Jun 2016 Apr - Jun 2016 RM'000 Passengers Carried 8,731,112 Revenue 1,994,542 Capacity 10,067,783 Seat Load Factor 87% Operating expenses: RPK (million) 11,261 - Staff costs (321,597) ASK (million) 13,114 - Depreciation of property, plant and equip
Slide 26: Quarter Ended 30 September
Quarter Ended: 30 September Quarter Ended: 30 September Jul - Sept 2016 Jul - Sept 2016 RM'000 Passengers Carried 8,829,734 Revenue 2,131,712 Capacity 9,977,370 Seat Load Factor 88% Operating expenses: RPK (million) 11,586 - Staff costs (313,110) ASK (million) 13,133 - Depreciation of property, plan
Slide 27: Quarter Ended 31 December
Quarter Ended: 31 December Quarter Ended: 31 December Oct - Dec 2016 Oct - Dec 2016 RM'000 Passengers Carried 8,925,464 Revenue 2,406,061 Capacity 10,308,450 Seat Load Factor 87% Operating expenses: RPK (million) 11,708 - Staff costs (408,774) ASK (million) 13,689 - Depreciation of property, plant a