Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Group Berhad — Q1 2019 Earnings Presentation
20 slides from Capital A Berhad's earnings presentation, May 29, 2019
Slide 1: AirAsia Group Berhad Analyst Presentation First Quarter 2019
AirAsia Group Berhad Analyst Presentation First Quarter for the Financial Year 2019 29 May 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: 1Q19 Key Highlights
1Q19 Key Highlights Strengthening our core Digitalising the airline Building digital platforms Positive >87% New website, new mobile app and Search Engine Optimized RM5.8bil Pages: EBITDA Load factor for all AOCs except for AirAsia Japan at 80% +US$7.8mil Incremental revenue AirAsia.com Gross Transa
Slide 4: 1Q19 Group Financial Performance Highlights
1Q19 Group Financial Performance Highlights Airline Revenue Group EBITDA Adjusted PBT +9% +13% -31% Gains on disposal of GTR RM350mil & Remeasurement gain RM535mil RM million one-offs ● Airline revenue is higher 9% YoY due to 3% higher RASK despite adding 11% more ASK. Passenger seat sales increased
Slide 5: AirAsia Philippines and AirAsia Indonesia
AirAsia Philippines AirAsia Indonesia EBITDA PAT EBITDA PAT 233% 12% 176% PHP million IDR billion 54% Philippines EBITDA grew significantly by 233% to Indonesia reported higher EBITDA of IDR181bil PHP1,538 mil and profit after tax reported 12% +176% YoY and significant narrowing losses after growth due
Slide 6: 1Q19 Operating Statistics by AOCs
1Q19 Operating Statistics by AOCs Malaysia Indonesia Philippines Thailand India Japan We continue to grow across the board Pax +10% +66% +23% +4% +32% +80% ASK +4% +44% +23% +10% +31% +114% Impressive performance by ID, PH & IN as we build momentum with our strong brand Load 87% (-1ppt) 87% (+7ppt)
Slide 7: 29% increase in Ancillary Revenue in 1Q19
29% increase in Ancillary Revenue in 1Q19 RM520.1mil 13% RM663.7mil 29% 23% of total revenue Airline Highlights: ancillary ● AAGB ancillary reported RM663.7mil, ↑29% YoY ● Notably, ancillary revenue for PAA and IAA grew 42% and 44% YoY respectively ● Among them: ○ Inflight Duty Free ↑112% to RM7.2mil
Slide 8: 1Q19 Cost per ASK (CASK)
1Q19 Cost per ASK (“CASK”) CASK and CASK ex. fuel increased by 8% and 11% YoY +8% 14.57 respectively from: 13.55 ◆ Maintenance and overhaul ↑64% from non-cash maintenance provisions of +11% ~RM100m given higher number of leased sen aircraft post SLB arrangement (further explanation in Appendix) ◆ Ri
Slide 9: Digital Platforms
Digital Platforms ● Gross Transaction Value (GTV) of RM5.8bil in 1Q2019 ● AirAsia.com generated EBITDA of RM557k in 1Q2019 ● BigPay - over 500k signed up customers ● GTV grew by 48% QoQ, with new card issuance increasing by 28% for same period ● Revenue for 1Q2019, grew 29% QoQ, rising from circa. 5
Slide 10: Strategy for 2019
Strategy for 2019 We remain confident that all ASEAN AOCs will be profitable for 2019 FY2019 group load factor target of 85% Forward 2Q2019 load factor MAA IAA PAA TAA AAI AAJ Load Factor (%) 84 82 91 82 88 77 Adding net 18 aircraft in 2019 including additional 11 for AirAsia India Revenue enhancement
Slide 11: Special dividend of 90 sen
Special dividend of 90 sen ● 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 Dividend policy: ● Committed to pay special dividends every 2 years ● Dividend policy of 20% of net profit 11 Strictly
Slide 12: Thank you & Appendix
Thank you & Appendix 12 Strictly private and confidential
Slide 13: Malaysia 1Q2019 Income Statement & Operating Statistics
Malaysia 1Q2019 Income Statement & Operating Statistics Note: PAT ex MFRS 16: RM381mil. Other income in 1Q19 includes dividend from subsidiary of RM297mil. 13 Strictly private and confidential
Slide 14: Indonesia 1Q2019 Income Statement & Operating Statistics
Indonesia 1Q2019 Income Statement & Operating Statistics Note: LAT ex MFRS 16: IDR 93,594mil. 14 Strictly private and confidential
Slide 15: Philippines 1Q2019 Income Statement & Operating Statistics
Philippines 1Q2019 Income Statement & Operating Statistics Note: PAT ex MFRS 16: PHP327mil. 15 Strictly private and confidential
Slide 16: Growing Market Share
Growing Market Share AirAsia’s Domestic Market Share & Rational Competition (1Q2019 vs 1Q2018) 4ppts 61% flat 32% flat 2% 1ppt 18% 1ppt 6% 4 ppts FLAT 2 ppts FLAT 3 ppts 1 ppt 1 ppt 1 ppt 1 ppt 6 ppts Source : PaxIS 16 Strictly private and confidential
Slide 17: 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 6 countries: 2019 Net Addition 2 -1 2 3 11 1 18 * December 2018 fleet excludes 2 third party leases Target aircraft financing for 2019: All on sale and leaseback. Our long-term fleet plan Ex
Slide 18: Fuel & Currency Hedging
Fuel & Currency Hedging • Our Group’s fuel hedging strategy is based on our forward sales booking • Brent – 54% hedged for FY2019 at USD63.50 per barrel; 50% hedged for FY2020 at USD60.53 per barrel; FY2021 9% at USD60.13 bbl • Currency hedges – USD operating expenditure is 100% hedged up to October
Slide 19: MFRS 16 impact to leased assets
MFRS 16 impact to leased assets AirAsia adopted MFRS 16 using the Modified Approach method whereby the leases were computed based on the present value of all its future payments based on the Company’s borrowing rate with the impact taken to opening retained earnings as at 1 January 2019. The chart de
Slide 20: Owned vs leased aircraft wrt engine maintenance
Owned vs leased aircraft wrt engine maintenance When assets is owned, major overhaul is capitalized into the aircraft as it prolongs the life of aircraft used in operations. This is then depreciated over the useful life of the asset. When an asset is leased, major overhaul will need to be expensed i