Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Investor Presentation (September 2019)
39 slides from Capital A Berhad's investor presentation, September 2019
Slide 1: AirAsia Group Berhad Corporate Presentation September 2019
AirAsia Group Berhad Corporate Presentation September 2019 1 Strictly private and confidential
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: Agenda
Agenda Achieving the unthinkable Strengthening our underlying airline business Digitalising the airline AirAsia 3.0 Leveraging our data to create platforms 3 Strictly private and confidential
Slide 4: The largest LCC in Asia
The largest LCC in Asia The fourth largest airline in Asia 6 airlines 2 airlines 265 aircrafts, in 8 airlines 100 million passengers flown annually >500 million total passengers flown 152 destinations across 22 Countries Over 388 routes, including 114 unique routes 24 hubs Over 10,000 flights per we
Slide 5: Wide digital reach via AirAsia.com, mobile app and social media
Wide digital reach via AirAsia.com, mobile app and social media Over 12,100,000 fans Over 26,700,000 followers Over 8,000,000 followers Over Over560 million Over 40 million 1,800,000 followers annual unique (web&app) visitors mobile app download Over Hits from over 2,100,000 followers Over15 million
Slide 6: 2Q19 Key Highlights
2Q19 Key Highlights Improved performance of AirAsia Philippines Turnaround of AirAsia Indonesia ● Profit grew 777% ● Profit of IDR11bn ● RASK up 5% with 91% load factor ● RASK up 6% ● CASK flat ● CASK down 16% Good performance by AirAsia Malaysia despite AirAsia India reduced losses by 74%. irrational
Slide 7: Dividends
Dividends ● 2019: special RM0.90 payable in 29 Aug 2019; 34% dividend yield ● 2018: Interim + special dividend – totaling to RM0.64 for FY2018; 21.5% dividend yield Special Dividends from Monetising Our Digital/Support Assets Ground Handling Service Pilot & crew training centre Hotel & travel Aircra
Slide 8: Agenda
Agenda Achieving the unthinkable Strengthening our underlying airline business Digitalising the airline AirAsia 3.0 Leveraging our data to create platforms 8 Strictly private and confidential
Slide 9: Fleet Plan
Fleet Plan Fleet Expansion Across AOCs in 2019 MAA TAA IAA PAA AAI AAJ Total December 2018* 95 62 24 22 19 2 224 2019 Net Addition 2 1 4 3 9 1 20 New A321neo aircraft are * December 2018 fleet excludes 2 third party leases more fuel efficient & have Target aircraft financing for 2019: All on sale and l
Slide 10: Growing Market Share
Growing Market Share AirAsia’s Domestic Market Share & Rational Competition (2Q2019 vs 2Q2018) 5ppts 62% flat 34% 1ppt 3% 3ppts 19% 1ppt 7% 5 ppts FLAT 1 ppt 1 ppt 7 ppts 1 ppt 3 ppts FLAT 3 ppts 1 ppt Source : PaxIS 10 Strictly private and confidential
Slide 11: Improved performance by PAA & IAA
Improved performance by PAA & IAA AirAsia Philippines AirAsia Indonesia 2Q18 2Q19 ▲ % 2Q18 2Q19 ▲% Revenue (Php mil) 5,461 7,513 ▲38% Revenue (IDR mil) 982,475 1,660,768 ▲69% EBITDA (Php mil) 274 1,575 ▲474% EBITDA (IDR mil) -90,874 351,075 ▲486% PAT (Php mil) 68 593 ▲777% PAT (IDR mil) -203,306 10,
Slide 12: Agenda: Data-driven organisation
Agenda Data-driven organisation Achieving the unthinkable Strengthening our underlying airline business DATA USERS COE Digitalising the airline AirAsia 3.0 DATA GOVERNANCE Leveraging our data to create platforms 12 Strictly private and confidential
Slide 13: We have a lot of Data to drive ecosystem expansion
We have a lot of Data to drive ecosystem expansion BIG Data and Real-time Insights Engine & Component Contact Details FOMAX Transactions Online Activity Demographic Maintenance Feedback Loyalty Mobile Activity Aircraft Social Data Guests Speed Transactions Lifestyle Data Cabin Baggage Weight Feedbac
Slide 14: Data taking us to new heights
Data taking us to new heights Priorities Cost Reduction Revenue Gain to Focus On Verticals Operations Pricing / Promos / to Work On Fuel Cost Ancillary Efficiency Bundling Rewards Increase Increase Cost Drive Goals Fuel Cost Increase Drive More Efficiency & Customer to Achieve Efficiency Uptake Traffic
Slide 15: Staying true to being low-cost
Staying true to being low-cost Our top priority, ALWAYS. Lower Predictive Driving fuel usage New A321neo aircraft airport maintenance to reduction through that are fuel efficient & charges increase data analytics have lower cost per efficiency seat Adoption of ‘Agile’ Media cost on a organisation down
Slide 16: Agenda
Agenda Achieving the unthinkable Strengthening our underlying airline business Digitalising the airline AirAsia 3.0 Leveraging our data to create platforms 16 Strictly private and confidential
Slide 17: Growth in 2019 and beyond: AirAsia 3.0
Growth in 2019 and beyond: AirAsia 3.0 Digital Bank & Logistics Insurance Lifestyle & Marketplace Entertainment Travel and financial platform of Asean Data AirAsia BIG Loyalty points - BIGLIFE AirAsia ecosystem comprises the Group’s core airline network operations, travel and lifestyle commerce platf
Slide 18: Corporate structure reorganisation
Corporate structure reorganisation Setting the right pillars towards becoming a travel and financial platform company AirAsia Group Airlines AirAsia.com RedBeat Ventures Teleport BigPay Santan/T&Co Country AOCs AirAsia BIG Loyalty OURSHOP Other non-airline investments 18
Slide 19: Building blocks laid for a platform business
We are investing in people Building blocks laid for a platform business Lye Kong Wei, Elias Vafiadis, Fabrice Marie, Chief of Data Science Head of Software Engineering Head of Information Security (Formerly from Grab) (Formerly from Expedia) (Formerly from Lazada) AirAsia Software Engineering & Techn
Slide 20: Agenda
Agenda Achieving the unthinkable Strengthening our underlying airline business Digitalising the airline AirAsia 3.0 Leveraging our data to create platforms 20 Strictly private and confidential
Slide 21: AirAsia.com - All-in One Travel and Lifestyle Marketplace
AirAsia.com - All-in One Travel and Lifestyle Marketplace New enhanced homepage UX/UI on web & mobile 21 Strictly private and confidential
Slide 22: AirAsia.com addressable market
AirAsia.com addressable market OUR VISION Asean internet economy market Now we are establishing AirAsia.com as a size (GMV, US$bn, all-in-one travel and lifestyle marketplace By sector 240 Ride-hailing (Online food delivery, ☑ Transportation 29 online transport) ☑ Food delivery Online media (Subscri
Slide 23: BigPay - Financial Supermarket
BigPay - Financial Supermarket Asia’s Money App ● Digital challenger bank for Southeast Asian millennials and travelers ● Democratise financial services with simple and affordable solutions for e-wallet, remittances, and lending 700k users e-Money Advanced money management Loans Remittance 23 Strictl
Slide 24: Belly Space Consolidation/Partnerships
AirAsia Group Belly Space Consolidation/Partnerships Existing cargo supply chain is ripe for disruption: AirAsia Group Belly Space Consolidation/Partnerships Jan 2019 Aug 2018 Feb 2019 Apr 2019 May 2018 Jul 2018 1Q 2020 1Q 2020 Apr 2019 7-8 Airlines in pipeline Full Year 2018 : Revenue of RM206 mil.
Slide 25: Building Teleport to enable direct businesses and consumers
Building Teleport to enable direct businesses and consumers Opening our logistics infrastructure to social sellers Social Commerce (C2C) is growing faster than ride-hailing in Asean ASEAN includes – MY, PH, TH, ID, VN, SG (ASEAN6) 2018-2025 Social commerce estimated at ~50% of formal e-commerce segm
Slide 26: Low customer acquisition cost built over two decades
Key to our platform strategy is our low customer acquisition cost built over the last two decades Asean internet Asean unicorns & funding in 2016-1H18 (US$bn) Active users, from economy market 2015 to 2018 size (GMV, US$bn, By sector 240 Ride-hailing (Online food delivery, Grab Go-Jek 10.1 8mn 35mn
Slide 27: AirAsia Valuation
AirAsia Valuation Market Dominance ASEAN Indonesia/ASEAN Global ASEAN Indonesia/ASEAN Visitors (per month) 65 million 22.2 million 750 million MAU: 18.6mn MAU: 28 million Daily active users ~2m 0.8mn n/a Ride-hailing: 4mn Ride-hailing: 1.8m Hotel nights for sales >500k >100k 352mn n/a n/a Merchants
Slide 28: Thank You & Appendix
THANK YOU & APPENDIX eesti Rl
Slide 29: 2Q19 Group Financial Highlights
2Q19 Group Financial Highlights Airline Revenue EBITDA Profit after Tax Airline ▲17% 🔻14% RM million 🔻9% Non-Airline 🔻85% ▲147% Group ● Airline revenue grew 17% YoY on: ○ ASK growth of 17% and load factor strong at 85% ○ RASK increase of 4% YoY ● Group EBITDA down 9% and PAT down 85% due to: ○…
Slide 30: 2Q19 Financial & Operational Performance
2Q19 Financial & Operational Performance MAA IAA PAA Key Indicators 2Q18 2Q19 % 2Q18 2Q19 % 2Q18 2Q19 % ASK (millions) 11,816 12,695 ▲ 7% 1,948 3,071 ▲ 58% 2,198 2,879 ▲ 31% OPERATIONAL Fuel consumed (Barrels) 1,870,735 1,980,974 ▲ 6% 311,786 491,808 ▲ 58% 404,818 519,201 ▲ 28% Average Fuel Price (U
Slide 31: 2Q19 Operating Statistics
2Q19 Operating Statistics Malaysia Indonesia Philippines Thailand India Japan Pax +11% +58% +22% +5% +25% +79% ASK +7% +58% +31% +12% +29% +103% 84% 82% 91% 83% 90% 78% Load factor (-2ppts) (+1ppts) (+4ppts) (-2ppts) (+3ppts) (-1ppts) RASK -1% +6% +5% -5% +4% +5% CASK +17% -16% +0% -1% -1% -29% Dom.
Slide 32: 2Q19 Ancillary Revenue grew 39%
2Q19 Ancillary Revenue grew 39% With non-airline ancillary up 243% YoY RM687mil 39% YoY* Non-Airline (23% of total revenue) 243% Non-airline: RM164mil 17% Airline Airline: RM523mil 2% Highlights: ● Continuous effort to drive ancillary for PAA and IAA bearing fruit - reported growth of 45% and 42% Yo
Slide 33: AAGB: RASK & CASK
AAGB: RASK & CASK ▲15% ▲4% 15.77 13.77 ▲24% CASK (sen) RASK (sen) ex-fuel ➔ RASK reported 15.40sen, 4% higher YoY, increasing proportionally to the ↑3% of average fare ➔ CASK and CASK ex. fuel increased by 15% and 24% YoY respectively from: ◆ Maintenance and overhaul ↑105% from maintenance provision
Slide 34: Fuel & Currency Hedging
Fuel & Currency Hedging • Our Group’s fuel hedging strategy is based on our forward sales booking • Brent – 65% hedged for FY19 at USD63.31 per barrel; 73% hedged for FY20 at USD60.22 per barrel; FY21 19% at USD59.45 bbl • Interest rates – All USD loans (for aircraft) are either fixed rate loans or h
Slide 35: Digital Platforms
Digital Platforms ● Gross Transaction Value (GTV) of RM5.4bil in 2Q19 ● EBITDA of RM1.85mil in 2Q19, growing 232% QoQ ● Included Hotels widget and Product badges on website homepage. Introduced flight & public chatroom on-app to create stickiness and better serve users’ need. Deployed ancillary scori
Slide 36: AirAsia.com Overview
AirAsia.com Overview Business Summary ● Incorporated in 2019, AirAsia.com is a regional web and mobile app CONTENT COMMERCE platform for travel and lifestyle bookings in Asia Creative Best deals visuals & for travel & ● Offers consumers travel and lifestyle products that are available for stories, s
Slide 37: BigPay Overview
BigPay Overview Business Summary ● Launched in 2018, BigPay aim to democratize financial services in Asia by building a digital bank that offers consumers e-wallet service, remittance and lending ● Value proposition includes easy user experience, usability via Mastercard’s extensive network, issuanc
Slide 38: Teleport Overview
Teleport Overview Business Summary ● Today, a consolidator of belly capacity for the AirAsia group of airlines, enabling cargo carriage for businesses across 110+ cities ● Global network reach through partner airlines beyond Asia covering US, Europe, Middle East and Australia/New Zealand ● Our goal
Slide 39: BigLife Overview
BigLife Overview Business Summary Products & Services ● Formally known as Big Loyalty and rebranded in 2019, BigLife is AirAsia’s frequent flyer program aiming to power AirAsia’s greater Points Earn & Burn ecosystem with its loyalty points as a high utility digital currency ● Earn and use points at
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