ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing ASEAN Airline Takes Wing Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results Third Quarter 2009 Results 20 November 2009 20 November 2009 20 November 2009 20 November 2009 20 November 2009 20 November 2009 20 November 2009 20 November 2009
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 regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information may contain projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks factors and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. This presentation can be distributed without any consent of the Company as this is a publicly available announcement. 1
Key Highlights for Third Quarter � Strong third quarter results given challenging operating environment – core operating profit RM34 million, reversal from RM82 million loss in Q3-2008 – third quarter is our weakest quarter – consumer sentiment impacted by A-H1N1 and challenging global economy � Raised RM505 million capital – issued 380 million shares @ 16% of issued paid up capital – reduced net gearing level to 2.6 times (previously a major concern by investors) � Indonesia has turned the corner, produced profits of RM21 million – the power of the associates is unveiled – with more Airbus A320, cost structure will improve and so will profits � Issues with MAHB settled – paid off disputed amount to MAHB – lower airport fees announced, significant savings for AirAsia � Ancillary income strong growth trajectory 2
Malaysia: Third Quarter in a Snapshot Quarter Ended: 30 September Jul-Sep 2008 Change Jul-Sep 2009 RM'000 unless otherwise stated (restated) y-o-y Revenue 739,668 707,909 4% EBITDAR 234,611 101,687 131% Core Operating Profit 33,834 (81,580) n/a Profit after Tax 130,072 (470,570) n/a � Disciplined, profitable growth – revenue growth of 4% driven by 19% passenger growth � Lowest cost airline in the world at 3.21* US cents / ASK � Maintaining strong growth trajectory – high capacity growth matched by demand, constant load factor of 75% – yield reduction (-7%) is significantly lower than other notable airlines which are * Change in Cost / ASK computation. Refer to Bursa announcement for further clarification 3
Indonesia: Third Quarter in a Snapshot � Indonesia has turned the corner, net profit of IDR59 billion (RM21 million) � Platform for sustained profitability has been established Indonesia AirAsia Cost / ASK New Route Strategy is Producing Profits Indonesia AirAsia Cost / ASK New Route Strategy is Producing Profits Indonesia Cost / ASK (US cents) Indonesia Margin Spread (RASK - CASK) 0 .16 6.00 0.20 0 .0 8 5.2 7 5.0 6 0.00 5.00 Q1 - Q2- Q3- Q4- Q1 - Q2- Q3- 4 .16 4 .0 5 - 0 .11 3 .8 4 -0.20 2008 2008 2008 2008 2009 2009 2009 3 .6 5 4.00 - 0 .2 5 3 .2 5 -0.40 - 0 .4 4 3.00 -0.60 Stable cost Streamline capacity 2.00 -0.80 in the second quarter - 0 .76 Q1 - Q2- Q3- Q4- Q1 - Q2- Q3- 2009 - 0 .8 8 2008 2008 2008 2008 2009 2009 2009 -1 .00 � Airbus A320 replacement into fleet is � Access to international routes has – enhancing efficiency significantly improved operations – increasing capacity – improved the RASK vs. CASK spread – Australia and Singapore routes are – lowering operational cost high yielding and high loads 4
Thailand: Third Quarter in a Snapshot � � Thailand is headed towards the right direction � � Thailand AirAsia Cost / ASK New Route Strategy is Producing Profits Thailand AirAsia Cost / ASK New Route Strategy is Producing Profits Thailand Load Factor Thailand Cost / ASK (US cents) 79 .1% 5.6 4 5.52 78 .2 % 6.00 80.0% 5.4 6 77.5% 74 .6 % 5.00 73 .9 % 4 .15 75.0% 4 .14 4 .13 71.5% 4.00 6 9 .4 % 70.0% 3.00 Stable cost 2.00 65.0% Q1 - Q2- Q3- Q4- Q1 - Q2- Q3- Q1 - Q2- Q3- Q4- Q1 - Q2- Q3- 2008 2008 2008 2008 2009 2009 2009 2008 2008 2008 2008 2009 2009 2009 � Airbus A320 replacement into fleet is � Underlying demand is positive – enhancing efficiency – underlying demand is positive, but it is – Increasing capacity due to low fare stimulation – AirAsia ideally positioned to capture – lowering operational cost huge upside when market turns 5
AirAsia X: Third Quarter in a Snapshot � � � � The long haul, low cost model is proven successful Passengers Carried Revenue (RM million) Passengers Carried Revenue (RM million) Passenger Carried and Load Factor Revenue (RM million) 19 5,79 4 PAX 200,000 77% 400,000 Load Factor 8 0 % 69% 69% 288,044 1 75,000 300,000 7 0 % 217,731 14 9 ,10 4 1 50,000 200,000 6 0 % 146,196 12 8 ,8 9 0 1 25,000 1 00,000 5 0 % 0 1 00,000 4 0 % Q1 -2009 Q2-2009 Q3-2009 Q1 -2009 Q2-2009 Q3-2009 � Strong level of acceptance of AAX � Kept cash balance in tact despite services as seen by high passenger financing three aircraft during the period growth and load factors � Fourth quarter looking positive with � Upgrading fleet with new seats strong loads and high yields – extra comfort at better value 6
Strong Ancillary Income Growth AirAsia Ancillary Income Growth Ancillary Income Target AirAsia Ancillary Income Growth Ancillary Income Target Ancillary Income (RM million) Actual Target Spend / pax 52 36.2 140 35.0 29.0 27.0 40 120 130 36 30.0 23.1 22.1 100 29 25.0 12.0 13.3 15.2 15.1 15.7 17.8 95 91 80 20.0 74 60 70 15.0 40 50 10.0 42 41 37 31 20 5.0 26 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3-2009 2010 2011 2007 2008 2009 � Ancillary income growth ahead of expectations � Relatively stable profits as it is seasonally insensitive � Further growth potential at limited additional cost 7
Balance Sheet Cash Rich Net Gearing (Net Debt/ Equity) Net Gearing (Net Debt/ Equity) Capital ��� ��� Fuel Hedge ��� Raising Unwinding ��� ��� ��� ��� Q1- Q2- Q3- Q4- Q1- Q2- Q3- 2008 2008 2008 2008 2009 2009 2009 � Raised RM505 million capital – issued 380 million shares @ 16% of issued paid up capital – reduced net gearing level to 2.6 times (previously a major concern by investors) � 5-Day free seats campaign generated approximately RM200 million – “free seats” halo generates revenue for ancillary sources 8
The Real “Gearing” is Low Malaysia Gearing on a Standalone Basis RM million Shareholders Equity 2,587 Net debt 6,688 Aircraft debt related to Thailand and Indonesia (2,028) Debt specific for Malaysia 4,668 Net Gearing 1.80 � As the associates take on aircraft into their balance sheet – Thailand and Indonesia will eventually take on assets to their balance sheet – will form an asset light structure AirAsia Berhad � Intrinsic gearing for AirAsia is low, and will reduce going forward – strong cash growth supported by cash from operations – Capex for Malaysian operations will be relatively “low” in the next two years 9
Route Network Constantly Growing AirAsia Group Route Network AirAsia Group Routes AirAsia Group Route Network AirAsia Group Routes 129 104 75 65 52 26 11 6 2002 2003 2004 2005 2006 2007 2008 NOW Note: Years represent calendar year end, “Now” as of 20 Nov ’09 Number of routes includes AirAsia X services Expanding the Hub Network Expanding the Hub Network � Penang (established in July) - ideally suited to link China & India � Surabaya (established August) - ideally suited to link China & India � Phuket (established in November) - strong tourist appeal 10
India Beckons 1.1 billion people � Existing US$3.1 trillion economy – Kuala Lumpur to Trichy (2x day) is ± ± 20 potential airports ± ± Amritsar AirAsia’s top ten profitable route � Launched Delhi – Kuala Lumpur to Kolkata – Kuala Lumpur to Kochi – Kuala Lumpur to Trivandrum � Coming up Kolkata – Kuala Lumpur to Chennai – Penang to Chennai – Kuala Lumpur to Bangalore Hyderabad – Kuala Lumpur to Hyderabad – Kuala Lumpur to Mumbai Chennai – Kuala Lumpur to Delhi Bangalore Kochi � Prospects Trichy – Bangkok to Delhi Trivandrum – Bangkok to Kolkata – Bangkok to Amritsar 11
Recommend
More recommend
