Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q2 2012 Earnings Presentation
27 slides from Capital A Berhad's earnings presentation, 2012
Slide 1: AirAsia Berhad Second Quarter 2012 Analyst Presentation
AirAsia Berhad Second Quarter 2012 Analyst Presentation
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: 2Q12 Highlights
2Q12 Highlights
Slide 4: 2Q12 Results – Key Highlights
2Q12 Results – Key Highlights Revenue upside in all three operations Malaysia - RM 1.182 billion up 9% y-o-y Thailand - THB 4.43 billion up 16% y-o-y Indonesia - IDR 986.52 billion up 9% y-o-y O perating profit Malaysia - RM 205.82 million down 4% y-o-y Thailand - THB 231.14 million down 16% y-o-y I
Slide 5: 2Q12 Results – Key Highlights
2Q12 Results – Key Highlights Thai AirAsia MAA recognised profits of RM11.9 million from TAA Moving operations to a dedicated LCC terminal Don Mueang Fleet rollouts 21 aircraft brought forward across 2012, 2013 and 2014 Currently operating 105 Airbus fleet in various hubs: Entity HUBS MAA- 58 • KUL
Slide 6: 1H12 Results – Key Highlights
1H12 Results – Key Highlights Revenue Malaysia - RM 2.35 billion up 10% y-o-y Thailand - THB 9.30 billion up 17% y-o-y Indonesia - IDR 1,897.86 billion up 13% y-o-y Operating profit Malaysia - RM 445.9 million down 2% y-o-y Thailand - THB 859.97 million down 26% y-o-y Indonesia - IDR 93.10 billion u
Slide 7: 2Q12 – Financial Results – Malaysia
2Q12 – Financial Results – Malaysia RM’000 Financial performance 2Q12 2Q11 Change Revenue 1,181,561 1,081,773 9% EBITDAR 382,050 372,842 2% Operating Profit 205,821 214,803 -4% Net Operating Profit 130,942 135,171 -3% Profit after tax 1,194,863 104,257 1046% EBITDAR margin 32% 34% -2 ppt Operating p
Slide 8: 2Q12 – Financial Results – Malaysia
2Q12 – Financial Results – Malaysia Operational performance 2Q12 2Q11 Change Passengers Carried 4,902,689 4,472,498 10% Capacity 6,163,020 5,511,780 12% Load Factor 80% 81% - 1ppt RPK (million) 5,621 5,250 7% ASK (million) 7,038 6,436 9% Average Fare (RM) 177 164 8% RASK (sen (sen) sen) 16.79 16.81
Slide 9: 1H12 – Financial Results – Malaysia
1H12 – Financial Results – Malaysia RM’000 Financial performance 1H12 1H11 Change Revenue 2,349,959 2,135,056 10% EBITDAR 793,251 771,492 3% Operating Profit 445,896 456,522 -2% Net Operating Profit 298,910 297,073 1% Profit after tax 1,367,297 276,188 395% EBITDAR margin 34% 36% -2 ppt Operating pr
Slide 10: 2Q12 - Financial Results – Malaysia (MFRS 131)
2Q12 - Financial Results –Malaysia Malaysian Financial Reporting Standard 131 (MFRS 131) 131) Interest in Joint- Joint-Ventures • From the date when a jointly controlled entity becomes an associate of an investor, the investor shall account for its interest in accordance with MFRS 128. On the loss o
Slide 11: 2Q12 – Financial Results – Thailand
2Q12 – Financial Results – Thailand THB’000 2Q12 2Q11 Change Revenue 4,432,775 3,809,810 16% EBITDAR 1,046,033 950,612 10% Operating Profit 231,141 275,349 -16% Profit after tax 245,788 328,097 -25% Passenger Carried 1,935,072 1,614,853 20% Capacity 2,452,320 2,063,160 19% Load Factor 79% 78% 1 ppt
Slide 12: 1H12 – Financial Results – Thailand
1H12 – Financial Results – Thailand THB’000 Financial performance 1H12 1H11 Change Revenue 9,300,884 7,946,912 17% EBITDAR 2,445,642 2,506,894 -2% Operating Profit 859,973 1,160,585 -26% Profit after tax 867,430 1,219,639 -29% EBITDAR margin 26% 32% -6 ppt Operating profit margin 9% 15% -6 ppt (EBIT
Slide 13: 2Q12 – Financial Results – Indonesia
2Q12 – Financial Results – Indonesia IDR million 2Q12 2Q11 Change Revenue 986,516 901,815 9% EBITDAR 218,447 211,569 3% Operating Profit 77,649 45,254 72% Profit after tax 29,958 41,690 -28% Passenger Carried 1,447,492 1,259,737 15% Capacity 1,847,160 1,647,904 12% Load Factor 78% 76% 2 ppt Average
Slide 14: 1H12 – Financial Results – Indonesia
1H12 – Financial Results – Indonesia IDR’ million Financial performance 1H12 1H11 Change Revenue 1,897,861 1,680,864 13% EBITDAR 384,241 382,917 0% Operating Profit 93,100 54,037 72% Profit after tax (6,697) 72,002 -109% EBITDAR margin 20% 23% - 3ppt Operating profit margin 5% 3% 2 ppt (EBIT) Operat
Slide 15: Ancillary Income
Ancillary Income 2Q12 Ancillary Income • Malaysia : Ancillary per pax down 19% y-o-y to RM37 from RM45 • Thailand : Ancillary per pax down 23% y-o-y to THB311 from THB405 • Indonesia : Ancillary per pax down 16% y-o-y to IDR 117,517 from IDR 139,680 Decline in performance due to : • Company experime
Slide 16: 2Q12 – Net Gearing & Net Debt
2Q12 – Net Gearing & Net Debt Net Gearing (Since IPO) 5.00 4.02 4.00 3.00 2.62 1.74 2.00 1.41 1.18 1.10 1.00 0.55 0.00 -0.35 -1.00 2005* 2006* 2007* 2008 2009 2010 2011 2Q12 Balance Sheet Gearing at 1.10 times Cash position of RM2.16 billion Debt Financing 90 of 105 aircraft on balance sheet; TAA wi
Slide 17: Hedging Updates
Hedging Updates Fuel hedging : Jul 12: 31% via fixed swap Jet Kero @ US$119.34/bbl Aug & Sep 12: 6% via fixed swap Jet Kero @ US$109.63/bbl 2h 2012: up to 31% via fixed swap Brent @ $116/bbl Hedging strategy to match forward bookings Foreign Exchange Foreign currency hedge up to 66% with a weighted
Slide 18: AirAsia Group - Fleet Plan
AirAsia Group - Fleet Plan • Fleet rollout next 15 years: 30 25 24 23 24 24 24 20 21 21 20 21 18 19 15 A320neo 14 10 A320 4 9 9 5 7 0 2025 2022 2021 2024 2020 2023 2026 2013 2015 2016 2019 2012 2017 2018 2014 • 105 Airbus A320 of which 103 from Airbus firm orders and 2 are operating leases – MAA 58,
Slide 19: AA Group - Cost Initiatives
AA Group - Cost Initiatives Sharklets on Aircraft Fuel Savings of approximately 3% All aircraft delivered from December onwards will have sharklets Pushing for LCC Terminal All domestic and international flights will operate services from Don Mueang Airport beginning of 1 October 2012 onwards Saving
Slide 20: AA Group – Joint Ventures Updates
AA Group – Joint Ventures Updates Joint ventures Details Philippines’ Began operations in March AirAsia Operating out of Clark Launched domestic routes to Davao, Kalibo and Puerto Princesa Launched International routes to KL, Macau and Hong Kong YTD losses of RM37.4 million Investment has been writt
Slide 21: AirAsia Group – AirAsia Expedia
AirAsia Group – AirAsia Expedia Profits has been reinvested for expansion phase Financial Performance • Total Revenue YTD of S$40 million up 65% YoY Japan – 57% YoY revenue growth India – 67% YoY revenue growth Korea – 32746% YoY revenue growth Singapore – 197% YoY revenue growth Malaysia – 857% rev
Slide 22: AirAsia Group – Acquisition of Batavia Air
AirAsia Group – Acquisition of Batavia Air Conditional Share Sale Agreement AirAsia Berhad 49% 51% Batavia Air Aero Flyer Institute (AFI) Acquisition details: details • AAB 49%, Fersindo 51% • Total purchase consideration: USD80 million (AAB portion: USD39.8 million) • To be completed by 2Q2013, sub
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Slide 24: Appendix
Appendix Financials and Operating Statistics
Slide 25: 2Q12 – CASK – Malaysia
2Q12 – CASK – Malaysia Cost / ASK (US cents) 2Q12 2Q11 Staff Costs (0.56) (0.55) Depreciation (0.63) (0.71) Aircraft Fuel Expense (2.19) (2.19) Aircraft Operating lease expense (0.17) (0.08) Maintenance, Overhaul (0.10) (0.08) User Charges and other related expense (0.52) (0.34) Travel and tour oper
Slide 26: 2Q12 – CASK – Thailand
2Q12 – CASK – Thailand Cost / ASK (US cents) 2Q12 2Q11 Staff Costs (0.50) (0.49) Depreciation (0.02) (0.02) Aircraft Fuel Expense (2.41) (2.08) Aircraft Operating lease expense (0.98) (0.95) Maintenance, Overhaul (0.44) (0.39) User Charges and other related expense (0.77) (0.78) Travel and tour oper
Slide 27: 2Q12 – CASK – Indonesia
2Q12 – CASK – Indonesia Cost / ASK (US cents) 2Q12 2Q11 Staff Costs (0.47) (0.47) Depreciation (0.11) (0.02) Aircraft Fuel Expense (2.15) (2.02) Aircraft Operating lease expense (0.56) (0.78) Maintenance, Overhaul (0.42) (0.39) User Charges and other related expense (0.52) (0.40) Travel and tour ope