Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q1 2011 Earnings Presentation
21 slides from Capital A Berhad's earnings presentation, May 24, 2011
Slide 1: First Quarter 2011 Results
First Quarter 2011 Results 24 May 2011
Slide 2: Disclaimer
Disclaimer Information contained in our presentation is intended solely for your reference. 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 we nor our advisors make any representation
Slide 3: 1Q11 Results – Key Highlights
1Q11 Results – Key Highlights Malaysia – Passenger and Ancillary income drive up revenues Operating profit of RM241 million recording 46% y-o-y growth Operating profit margins up 4 ppt y-o-y to 23% Passenger volume grew by 17% y-o-y, achieving 80% load factor RASK (RM sen) up 12% despite tough fuel
Slide 4: 1Q11 Results – Financial Results
1Q11 Results – Financial Results MAA TAA IAA RM’000 THB’000 IDR million 1Q11 1Q10 Change 1Q11 1Q10 Change 1Q11 1Q10 Change Revenue 1,047,941 870,605 20% 4,086,332 3,065,609 33% 774,846 563,502 38% Operating (806,222) (705,551) 14% (3,237,043) (2,613,868) 24% (766,037) (548,877) 40% Expenses Operatin
Slide 5: 1Q11 Results – Operating Statistics
1Q11 Results – Operating Statistics MAA TAA IAA 1Q11 1Q10 Change 1Q11 1Q10 Change 1Q11 1Q10 Change Passengers 4,318,334 3,685,389 17% 1,817,485 1,481,111 23% 1,093,643 893,381 22% Carried Capacity 5,415,120 5,016,780 8% 2,154,780 1,836,101 17% 1,388,588 1,234,492 12% Load Factor 80% 74% 6 ppt 84% 81
Slide 6: 1Q11 Results – AirAsia Group
1Q11 Results – AirAsia Group AirAsia Group 1Q11 1Q10 Change Revenue 1,720,844 1,384,673 24% Operating Profit 329,492 217,044 52% PBT 294,846 322,539 -9% PAT 263,830 290,401 -9% Passenger Carried 7,229,462 6,059,881 19% Capacity 8,958,488 8,087,373 11% RPK (million) 8,525 6,770 26% ASK (million) 10,5
Slide 7: 1Q11 Results – Ancillary Income
1Q11 Results – Ancillary Income Ancillary Income per pax up y-o-y across the Group: Malaysia : ↑31% Thailand : ↑ 34% Indonesia: ↑ 57% IAA TAA MAA Total Ancillary revenue Percentage of revenue Ancillary increased to RM50 per pax due to increased charges in February on ancillary like baggage, pick a s
Slide 8: 1Q11 Results – RASK on the rise
1Q11 Results – RASK on the rise RASK up y-o-y across three operations despite high fuel environment Average fuel price MAA : 1Q11 – US$ 117.1 1Q10 – US$99.6 TAA : 1Q11 – US$117.8 1Q10 – US$96.9 IAA : 1Q11 – US$117.6 1Q10 – US$100.4 7
Slide 9: 1Q11 Results – Gearing Level
1Q11 Results – Gearing Level AirAsia 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Berhad Net 6,726 6,688 6,862 6,248 6,728 6,705 6,356 5,976 Debt (RM’mil) Net 3.50 2.60 2.62 2.25 2.27 2.02 1.75 Gearing 1.57 Gearing level reduced to 1.57 times from 1.75 times q-o-q Achieved cash up to RM2.
Slide 10: Fleet Strategy
Fleet Strategy AirAsia Group has the biggest and youngest fleet among the LCC’s in the region with an average age of 2.5 years AirAsia Group has 93 aircraft spread across 12 hubs. No. HUB B737 A320 1 Kota Kinabalu 0 5 2 Kuching 0 3 3 Kuala Lumpur 0 42 4 Penang 0 3 5 Bangkok 0 17 6 Chiang Mai 0 1 7 P
Slide 11: Outlook
Outlook 10
Slide 12: Forward Bookings
Forward Bookings Forward bookings in 2Q2011 higher compared to 2Q10 despite fuel surcharge being imposed Continue to be load active by offering promotional fares on various destinations Malaysia Thailand 38% 32% 35% 30% 27% 21% 24% 23% 22% 18% 16% 2010 17% 2010 2011 2011 JUN JUN JUL JUL AUG AUG Indo
Slide 13: Value Creation via New Ancillary Initiatives
Value Creation via New Ancillary Initiatives Overview of AirAsia Go / Expedia JV Proposed JV will combine AirAsiaGo with Expedia-branded storefronts in Japan, India, and ASEAN - - AirAsia will contribute AA and AAX inventory and commission from ancillary sales - - Expedia, Inc. will also contribute:
Slide 14: Joint Ventures in NEW MARKETS
Joint Ventures in NEW MARKETS Philippines JV Vietnam JV Target Launch 4th Quarter 2011 In discussions with partners on Clark as the first hub proposed launch in the near term Key Strategies Ho Chi Minh as the first hub Connect Existing routes flown by Key Strategies AirAsia Group such as :- Connect
Slide 15: Key Strategies for AirAsia Group
Key Strategies for AirAsia Group MALAYSIA Focus on building domestic market Add more frequencies on key domestic east Malaysia route Re-evaluate loss making routes and proposed to cancel Focus on shorter routes – less than 3 hours THAILAND Building domestic market which is very profitable for Thai A
Slide 16: Our Vision
Our Vision AirAsia is already a regional leader in aviation. It has an unique opportunity to extend this leadership and create a global aviation giant in the near term Low cost leadership Pioneer of the Associate model Leading ASEAN brand Broader growth in Asian aviation underpins AirAsia’s opportun
Slide 17: Thank You
Thank You
Slide 18: Appendix
Appendix 17
Slide 19: CASK Breakdown
CASK Breakdown Quarter ended: 31 March 2011 MAA TAA IAA Cost / ASK (US cents) Staff Costs (0.61) (0.48) (0.50) Depreciation (0.73) (0.02) (0.03) Aircraft Fuel Expense (1.94) (2.08) (1.93) Aircraft Operating lease expense (0.08) (0.95) (0.91) Maintenance, Overhaul, User Charges and (0.76) (1.11) (0.9
Slide 20: Accounting for TAA and IAA
Accounting for TAA and IAA Overview AirAsia has investments of 48.9% in both TAA and IAA The aviation laws of Thailand and Indonesia require foreign shareholdings to not exceed 50% interest in these entities Based on the shareholders’ agreements for these entities, TAA is considered to be a jointly
Slide 21: Accounting for TAA and IAA (continued)
Accounting for TAA and IAA (continued) Equity Accounting The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of net assets of the investee. The profit or loss of the investo