Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q3 2013 Earnings Presentation
18 slides from Capital A Berhad's earnings presentation, 2013
Slide 1: AirAsia Berhad / Asia Aviation PCL Third Quarter 2013 Analysts Presentation
AIRASIA BERHAD ASIA AVIATION PCL THIRD QUARTER 2013 ANALYSTS 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: 3Q13 Key Financial Highlights
3Q13 KEY FINANCIAL HIGHLIGHTS
Slide 4: Key Highlights
KEY HIGHLIGHTS ALL THREE COUNTRIES CONTINUE DESPITE IRRATIONAL COMPETITION 1 TO GENERATE GROWTH IN REVENUES IN MALAYSIA AND THAILAND, OPERATING PROFITS OUTPERFORMED +72% +35% +26% +3% +5% -18% RM1.28bn THB5.60bn IDR RM291.06m THB448.54m 1,619.01bn IDR 113.57bn MALAYSIA THAILAND* INDONESIA MALAYSIA T
Slide 5: Key Highlights: Low cost wins, no margin erosion
KEY HIGHLIGHTS LOW COST WINS NO MARGINS EROSION FOR AIRASIA 2 AIRASIA REMAINS A LEADER 3 WHILE OTHER AIRLINES SUFFERS -5% +3% +2ppts -7% 39% +1ppts 5.03 4.25 +1ppt 25% -5ppts 3.87 23% 23% +2ppts -2ppts 8% 7% MALAYSIA THAILAND* INDONESIA EBIT EBITDAR EBIT EBITDAR EBIT EBITDAR 3.87 5.03 4.25 MALAYSIA
Slide 6: Group Highlights
GROUP HIGHLIGHTS 5 CONCERNS OF OVERCAPACITY SQUASHED, PASSENGERS CONTINUE TO FLY • Passenger Carried - 10.61 million + 27% y-o-y • Capacity - 13.91 million seats + 29% y-o-y 6 3Q13 GROUP LOAD FACTOR OF 76% - REGIONAL NETWORK A GOLDMINE 7 EBIT & EBITDAR GROUP MARGINS UP PROVING ABILITY TO COMBAT COMP
Slide 7: Concerns of Competition
CONCERNS OF COMPETITION 3Q13 STRONG RECOVERY FROM 2Q13 OPERATING PROFIT UP 3Q13 and 9M13 Operating profit up despite competitive pressures YIELDS UP 3Q13 RASK improved by 4% from 2Q13 one off weak performance COST REDUCTION CASK continue to decline 1% and 6% q-o-q and y-o-y respectively RASK CASK sp
Slide 8: Malaysia and Thailand Strategy
MALAYSIA - STRATEGY ADDRESSING KEY CONCERNS OVERCAPACITY • Both AirAsia and MAS is achieving double digit passenger growth • AirAsia has AirAsia X feeder growth as other airlines do not COST • Strategy to continue drive cost down via mechanising operations • Move to KLIA2 will see more efficient cos
Slide 9: Indonesia Strategy
INDONESIA - STRATEGY ADDRESSING KEY CONCERNS IRRATIONAL COMPETITION • Concern that Lionair will gain more market with aggressive pricing • IAA gaining domestic market share CAN AIRASIA SUCCEED IN OFFLINE MARKET? • Secured up to 5000 travel agents in the span of 9 months INFRASTRUCTURE ISSUE • Govern
Slide 10: Philippines Strategy
PHILIPPINES - STRATEGY ADDRESSING KEY CONCERNS TYPHOON IMPACT • Typhoon has brought AirAsia stronger with efforts to assist with the catastrophe • Highlights the true culture of the AirAsia team CLARK CLOSURE • Optimistic in the past about growing Clark but development of infrastructure and connecti
Slide 11: Looking Ahead: Strategy
LOOKING AHEAD STRATEGY
Slide 12: Group Overall Strategy
GROUP OVERALL STRATEGY DEVELOPING ASSOCIATES • Support associate growth with 31 aircraft deliveries in 2014 ANCILLARY INCOME • High Flyer program – over 2000 seats sold in month of October – launched 3rd October • New fly-thru pairings ADJACENCY BUSINESS • Expedia - Revenue growth of 40% y-o-y - Lea
Slide 13: Group Overall Strategy: Cost Reduction
GROUP OVERALL STRATEGY COST REDUCTION • Recognised Maintenance program - A cyclic fleet leader with highest amount of time and cycle on its engine. 16,604 cycles without removal • Mobile Application • New self kiosk check-in & baggage tagging • Debt Free Asset • Estimated annual cash savings at 2019
Slide 14: Looking Ahead: Appendix
LOOKING AHEAD APPENDIX
Slide 15: 3Q13 Financial Results: Malaysia
3Q13 FINANCIAL RESULTS 3Q13 – SUMMARY ON MALAYSIA OPERATING STATISTICS • Load Factor of 77% • Capacity up 11% matching passenger growth of 11% y-o-y FINANCIALS – STRONG RECOVERY WITH BETTER Q-O-Q PERFORMANCE • Revenue up 3% y-o-y due to:- - Passengers growth of 11% - Ancillary income per pax up RM1
Slide 16: 3Q13 Financial Results: Thailand
3Q13 FINANCIAL RESULTS MAINTAINING MARKET LEADERSHIP 3Q13 – SUMMARY FOR THAILAND OPERATING STATISTICS • High load factor of 83% • Passenger growth up 30% y-o-y exceeding capacity growth of 27% y-o-y • Don Mueang – Main Catalyst for growth • On time performance of 94% FINANCIALS • Revenue up 26% y-o-
Slide 17: 3Q13 Financial Results: Indonesia
3Q13 FINANCIAL RESULTS DISTRIBUTION CHANNEL BEARING FRUITFUL 3Q13 – SUMMARY ON INDONESIA OPERATING STATISTICS • Load factor of 75% • Passenger growth up 36% y-o-y - Remain a leader in strong international sector - Greater access to better distribution channels • Gaining in-roads domestically - Marke
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