Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2017 Earnings Presentation
18 slides from Capital A Berhad's earnings presentation, Nov 29, 2017
Slide 1: AirAsia Berhad Earnings Announcement 3Q2017
AN UNDERVALUED AIRLINE o AIRASIA BERHAD EARNINGS ANNOUNCEMENT 3Q2017 29 November 2017
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: 3Q2017 Highlights
3Q2017 HIGHLIGHTS DELIVERING OUR STRATEGY 1. Financial performance: * Passenger numbers: 9.89 million up 12% YoY * Revenue: RM2.45 billion up 15% YoY from RM2.13 billion (backed by load of 87%) * Net Operating profit: RM 374 mil down 8% YoY due to one-offs + RM31 mil due to Philippines re-delivery o
Slide 4: 3Q2017 Highlights
3Q2017 HIGHLIGHTS DELIVERING OUR STRATEGY 4. Cash flow * Free cash of RM605 mil and net cash flow of RM118.7 mil as a result the net gearing has further improved to 1.20x this quarter vs 1.33x in 3Q2016 5. Margins * EBIT 20%; EBITDAR 38% 6. CASK Cincl. fuel) & RASK * CASK was marginally up by 5% due
Slide 5: 3Q2017 Highlights
3Q2017 HIGHLIGHTS DELIVERING OUR STRATEGY 8. One AirAsia’s initiatives showing results MYR (million) Malaysia Thailand Indonesia Philippines REVENUE/AIRCRAFT/QUARTER EBITDAR/AIRCRAFT/QUARTER EMPLOYEE/AIRCRAFT/QUARTER EBITDAR/AIRCRAFT/YTD REVENUE/ASK (US CENTS) COST/ASK (US CENTS) 9. Strategy on Mone
Slide 6: Associates Performance
ASSOCIATES PERFORMANCE HIGHLIGHTS AIRASIA THAILAND Change 3Q17 3Q16 YOY Passengers Carried 4,934,324 4,326,526 +14% Load factor (%) 85 84 +]ppt Average Fares (THB) 1,460 1,574 -7% Capacity 5,788,740 4,326,526 +13% Revenue (THB mil) 8,751 8,161 +7% * New routes: 4 (Bangkok (Don Mueang) - Tiruchirappa
Slide 7: Ancillary Revenue target per pax
• • • • • • • • • Ancillary Revenue target per pax RM60 5
Slide 8: 4Q2017 and Beyond
4Q2017 AND BEYOND DELIVERING OUR FUTURE STRATEGY 1 Digital & data updates Mobile app (IOS & Android) conversion from desktop - Increased from 3.46% in 3Q16 to 5.82% in 3Ql7. New simplified 3 steps checkout process on www.airasia.com booking page - increased uptake from 42% to 48% (+6 percentage poin
Slide 9: 4Q2017 and Beyond
4Q2017 AND BEYOND DELIVERING OUR FUTURE STRATEGY 3. Creation of assets * Red Box (e-Commerce courier) - door to door delivery (B2B, C2C), warehousing. * Red Cargo - new cargo agent * Rokki shop (launch of e-Commerce website) - duty free, market place + Santan - in-house F&B brand 4. Corporate Exerci
Slide 10: AirAsia Berhad Consolidated AOCs
AirAsia Berhad Consolidated AOCs Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Thai AirAsia AirAsia India Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 8
Slide 11: Delivering Full Value: The New Structure
DELIVERING FULL VALUE THE NEW STRUCTURE EXISTING SHAREHOLDERS - bsidi ' Bursa Listed 7 7 HE sui ary | investment Holding AIRASIA GLOBAL BERHAD HM Associate t ~~ AIR TE i ~ "LEASING. ~ | ; DIGITAL “| ; SUPPORT "| TRANSPORATION | i DIVISION l BUSINESS I I DIVISION l 100% AIRASIA «cin Aciati . MALAYSIA
Slide 12: Thank You & Appendix
THANK YOU & APPENDIX
Slide 13: Airline Valuations
AIRLINE VALUATIONS PEER COMPARISONS BASED ON CONSENSUS PRICE TO EARNINGS EV/EBITDA MULTIPLE * As at Nov 17, AirAsia Berhad’s consensus is trading at Price-to- + Consensus EV at RMI6.2 bil, actual EV is RM20 bil earnings of 6x, with Net Profit of RM 1.64 bil vs the peers * Ast 22 Nov, AirAsia Berhad
Slide 14: AirAsia's True Value
AIRASIA’S TRUE VALUE SUM OF THE PARTS STAKE VALUE (RM’ MIL) AirAsia Berhad 100% 15,763 Asia Aviation Capital 100% 4,270 AirAsia X Berhad 14% 220 Tune Protect Group Berhad 14% mM Asian Aviation Center of Excellence 50% 78 AAE Travel Pte Ltd 25% 5 AirAsia Global Shared Services Sdn Bhd 100% 1 Total 20
Slide 15: 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 16: 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 17: 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 18: 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