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Results
24 February 2011
Disclaimer
Informationcontainedinourpresentationisintendedsolelyfor yourreference.Such
informationissubjecttochangewithoutnotice,itsaccuracyis notguaranteedanditmaynot
containallmaterialinformationconcerningtheCompany.Neither wenorouradvisorsmake
anyrepresentationregarding,andassumesnoresponsibilityorliabilityfor,theaccuracyor
completenessof,oranyerrorsoromissionsin,anyinformationcontainedherein.
Inaddition,theinformationmaycontainprojectionsandforwardlookingstatementsthat
reflectthecompanyscurrentviewswithrespecttofutureeventsandfinancialperformance.
Theseviewsarebasedoncurrentassumptionswhicharesubjecttovariousrisksfactorsand
whichmaychangeovertime.Noassurancecanbegiventhatfutureeventswilloccur,that
projectionswillbeachieved,orthatthecompanysassumptionsarecorrect.Actualresults
maydiffermateriallyfromthoseprojected.
ThispresentationcanbedistributedwithoutanyconsentoftheCompanyasthisisapublicly
availableannouncement.
FY2010
Remarkable performance for AirAsia Group
Malaysiabreaksbillionringgitnetprofitbarrier
ProfitaftertaxofRM1.06billionup111%yoy
AchievedbillionringgitnetprofitwithaveragefuelpriceperbarrelofUS$92inFY2010as
comparedtoUS$70inFY2009
Thailandsperformancesoaring
RevenueofTHB12.4billionrecording33%yoygrowth
ProfitaftertaxofTHB2.85billionwithagrowthof452%yoy
Passengervolumeup14%yoy,achieved78%loadfactor
Indonesia:Reachingnewheight
RevenueofIDR2,764billionrecording37%yoygrowth
ProfitaftertaxofIDR474billionwithagrowthof214%
Passengervolumegrewby13%yoy,achieved77%loadfactor
Ancillaryspendingperpaxontherise
Malaysia=RM4339%,Thailand=THB31062%,Indonesia=IDR123,30860%
Netgearingdownto1.75from2.62yoy
Furtherdebtreductionbyassociatesastheycontinuetorepay.Fullrepaymentswithin1 2years
Strongcashbalance
Malaysia=RM1.5billion,Thailand=RM57million,Indonesia= RM14million
LowestP/Eairlinewiththebiggestgrowthprospects
MAA
TAA
Total
IAA
2010
2009
2010
2009
2010
2009
2010
2009
(RM000)
(RM000)
(RM000)
(RM000)
(RM000)
(RM000)
(RM000)
(RM000)
Revenue
3,992,772
3,178,854
1,247,798
948,727
979,118
687,196
5,619,687
4,814,778
EBITDAR
1,735,325
1,364,232
428,161
86,400
287,846
74,152
2,451,331
1,524,784
EBITDA
1,669,633
1,257,162
206,550
87,798
114,255
70,902
1,990,439
1,098,462
EBIT
1,148,717
809,520
194,146
99,948
108,831
75,013
1,451,694
634,558
Profitbeforetax
1,099,298
622,288
286,567
82,298
168,051
64,490
1,553,917
475,500
Profitaftertax
1,066,877
506,268
286,567
82,298
168,051
64,490
1,521,496
359,480
CoreOperatingProfit/(Loss)
828,294
281,996
15,092
152,356
27
EBITDARmargin
CoreOperatingProfitmargin
447,454
1,263,276
462,519
51.1%
42.9%
34.3%
9.1%
29.4%
10.8%
43.6%
31.7%
24%
14%
23%
2%
16%
0%
22%
10%
1) Exchange Rate:
Associatesgrowingpace!
CombinedPATofassociatesofRM455million2010is30%ofMAA
Despiteincreaseinfuelprice,EBITDARmarginsup0.5ppt,25.2ppt
and18.6pptinMAA,TAAandIAArespectively
4th Quarter
Great finish to the year
Malaysiastellarperformance
Revenue ofRM1.19billionrecording33%yoygrowth
ProfitaftertaxofRM316million,up835%yoy
Passengervolumeup11%yoy,achieved82%loadfactor
Thailand:Anotherstrongperformance
RevenueofTHB3.74billionrecording29%yoygrowth
ProfitaftertaxofTHB1.64billionwithagrowthof364%yoy
Passengervolumeup13%yoy,achieved81%loadfactor
Indonesiarevsup
RevenueofIDR796billionrecording38%yoygrowth
ProfitaftertaxofIDR167billionwithagrowthof214%
Passengervolumegrewby7%yoy,achieved78%loadfactor
Ancillaryspendingperpaxinontherise
Malaysia=RM4999%,Thailand=THB369109%,Indonesia=IDR155,089108%
4
MAA
4Q2010
(RM000)
TAA
4Q2009
TOTAL
IAA
4Q2010
4Q2009
4Q2010
4Q2009
4Q2010
4Q2009
(RM000) (RM000)
(RM000)
(RM'000)
(RM'000)
(RM'000)
(RM'000)
Revenue
1,186,467
894,059
388,823
296,971
276,398
207,451
1,851,688
1,398,481
EBITDAR
584,433
387,083
164,717
28,729
57,361
15,192
806,511
343,162
EBITDA
571,951
369,292
101,883
76,252
7,486
56,119
681,320
236,921
EBIT
423,740
229,881
99,536
79,401
57,304
523,282
93,177
Profitbeforetax
390,222
223,750
170,728
63,654
57,983
52,662
618,933
107,434
Profitaftertax
316,551
33,871
170,728
63,654
57,983
52,662
545,262
-82,445
CoreOperatingProfit/(Loss)
332,879
134,720
184,424
34,134
3,631
13,128
520,934
155,726
EBITDARmargin
49.3%
43.3%
42.4%
9.7%
20.8%
7.3%
43.6%
24.5%
CoreOperatingProfitmargin
28.1%
15.1%
47.4%
11.5%
1.3%
6.3%
28.1%
11.1%
MAASuperbquarter!
TAA Finishesonahigh!
IAA Gainingpace!
Revenueandprofitaftertaxgrew
Fromlossmakingto364%growthinprofit Revenueandprofitaftertaxup38%
33%and832%respectivelyyoy
and214%yoydespitenonpeak
aftertaxyoypostingRM170.7mil
EBITDARmarginsincreasingto49.3%
season
Coreoperatingprofitup147%yoy StrongEBITDARmarginsincreaseto42.4%
EBITDARgrowthof491%yoy
ofRM164.7mil
1) Exchange Rate:
Higherancillaryrevenueandfares
contributedto29%growthyoyofrevenue
Internationalroutespayinghuge
5
dividends
MAA
IAA
4Q2010
4Q2009
ASK
6,434
5,863
10%
2,043
1,852
10%
1,788
1,604
11%
RPK
5,319
4,409
21%
1,638
1,493
10%
1,392
1,188
17%
Loadfactor
82%
79%
3ppt
80%
81%
1ppt
78%
74%
4ppt
Rev/ASK(sen/
THB/IDR)
18.44
15.25
21%
1.79
1.52
18%
442.27
363.14
22%
Rev/ASK(UScents)
5.92
4.48
32%
5.98
4.57
31%
4.93
3.84
29%
CASK(sen/THB/IDR)
11.85
11.12
7%
0.85
1.99
50%
435.89
459.22
5%
CASK(UScents)
3.81
3.27
16%
4.55
5.97
45%
4.86
4.85
0%
CASK(exfuel)(US
cents)
2.35
1.88
25%
2.85
4.27
62%
2.95
3.12
5%
AverageFare
188
176
7%
1,889
1,789
6%
634,864
545,410
16%
MAA
Averagefareup7%yoydueto
increaseddemandinpeakseason
TAA
QuarterEnded:
31December
2010
RASKup32%yoyduetoincrease
infaresandbiggercontribution
fromancillaryIncome
Change
4Q2010
yoy
4Q2009
Change
4Q2010
yoy
TAA
CASKdown50%duetoreductionin
earlydeliverycost
Averagefarestillup6%duethe
introductionroutesandhighpeak
season.
Loadfactormaintaineddespite
capacityincrease
4Q2009
Change
yoy
IAA
Averagefareup16%yoyduestrong
performingAustraliaroutes
RASKup29%yoycontributedfromahigh
increaseinancillaryspendingwhichrose
108%
Maintaininghighloadfactorof78%as
passengergrowthexceedcapacity
6
Ancillary Income
- AirAsia Group
AncillaryIncomeperpaxupyoyacrosstheGroup:
Malaysia:99%
Thailand: 109%
Indonesia: 108%
Malaysia (RM)
Baggageandcargorevenuescontinuetosoar
Highertakeupsforinflightmeals,HotSeatandAirAsiaInsure
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
NetDebt
(RMmil)
6,726
6,688
6,862
6,248
6,728
6,705
6,356
Net
Gearing
3.50
2.60
2.62
2.25
2.27
2.02
1.75
Addressinggearingbyreducingfurtherto1.75times
AchievedcashuptoRM1.8billion
CashbalanceofRM1.5billionasatend4Q10
Includingdepositsonaircraftpurchases,totalcashisclosetoRM1.8billion
Cashbalancetofurtherincreasewithexpectedpaymentsfromaffiliates
AmountduefromaffiliatesdecreasedfromRM823miltoRM376mil within12months
AffiliatestopayoffprojectedpaymentofintercoborrowingsafterproposedIPOorwithin
12years
8
Fleet Development
Source: CAPA
AirAsia Group
93
86
Boeing B737
Singapore Airlines
110
48
Airbus A320
Malaysia Airlines
92
59
Thai Airways
86
21
Garuda Indonesia
81
35
62
139
Philippines Airways
40
Cebu Pacific
32
19
Bangkok Airways
17
Silk Air
18
Tiger Airways
25
43
86
56 70
2012E
57
94 106
2011
Lion Air
2010
65
2009
Vietnam Airlines
19 14
130
154
175
2015E
On Order
2014E
In Service
2008
Airlines
2013E
AirAsiaGrouphasthebiggestandyoungestfleetamongtheLCCsintheregionwithanaverageageof2years
86aircraftstillonorder;IndiscussionswithAirbustoacquirethenewengineoption (NEO)AirbusA320aircraft
Defermentof2012aircraftdeliveriesfrom24to14withnopenaltyfromAirbus
Financingfor8aircrafttobedeliveredin2011issecured
Tophaseoutremaining4BoeingB737inIndonesiauponcompletionofrunwayupgradeinBandung
Source:AirAsia Actual2010,
Otherairlines Bloombergconsensus
10
Into the
Second
Decade
11
Forward Bookings
Load factor as at 22 February 2011
Malaysia
Thailand
Indonesia
Increaseindemandonairtravel
Forwardbookingremainshigherheadinginto
2Q11asdemandfortravelrises
Faresstillamonglowestinthemarkethence
thereisroomtoincrease
Continuouspromotionalfornewroutesand
additionalfrequencies
12
Fuel Management
Proven active measures to counter any spike in fuel prices
RecordPATofRM1.06billionin2010ataveragefuelpriceofUS$92/barrelatfleetsizeof90aircraft
AirAsiawasthefirstairlinetobeabletoremovefuelsurchargeinNovember2008.
Countermeasuresamongstothers:
Reintroducefuelsurcharge
Ancillaryinitiatives everyRM1/paxspentprovidesapproximatelyUS$1/barrelofbuffer
Higheraircraftcapacityenablescoststospreadacrossmorepassengers
Currentoilhedgingposition
Hedgedupto21%forupto2Q11ataverageofUS$92.31/barrel (fixedswapWTI)
Hedgeshavenomargincallsimpact
Hugelineswithseveralinstitutionsforoilhedging
Abilitytohedgethroughfinancialmarketsorphysicallywithoilsuppliers
Projectedsensitivityanalysisshowsevery/+US$1/barrelonfuelmovementswillimpact
approximately/+RM15millioninEBITDAandPAT.
13
AirAsia Group
Whats ahead in 2011
MALAYSIA
StrengtheningDomesticOperations
RampingupfrequenciesonkeyEastMalaysianroutesperformingwell
Increasingdomesticmarketshareof58%in2010
Internationalmarketshareof37%in2010
Focusonoptimizingloadfactor
IncreasedfrequenciesonroutesthatispopularwithAirAsiaXtraffic.AirAsiaXactsasafeederfor
AirAsianetwork.
Tomaintaindisciplinecostmanagementacrosstheorganization
Reduceaveragestagelengthandfocusonshorterrouteswithin3.5hours(i.e.Indiansub
continents)
[
THAILAND
Torevenuemanagekeydomesticandinternationalroutes(i.e.Indianroutes)
DevelopingChiangMaiasThailand3rd hubtostrengthengroupnetwork
Toincreasedomesticmarketshare(largestLCCwith43%marketsharein2010)
FurtherexpansionintoChina
INDONESIA
Strengtheningdominanceininternationalsector
Leaderininternationalmarketshareof41%
GrowingexistinghubssuchasBaliandSurabayaandintroducing MedanasIndonesia5th hub
14
AirAsia Group
Whats ahead in 2011
Joint Ventures
Listing of Associates
Monetising other
AirAsia business units
Growing Ancillary
Income
Focus on managing
leverage
15
Appendix
17
Appendix 1
MAA
TAA
IAA
Chang
4Q2010
e
(IDRmil)
yoy
4Q2009
(THB000)
Revenue
1,186,467
894,059
33%
3,744,361
2,907,347
29%
795,750
577,217
38%
EBITDAR
584,433
387,083
51%
1,586,223
(281,256)
664%
165,142
(42,272)
491%
EBITDA
571,951
369,292
55%
981,133
(746,508)
231%
21,551
(156,148)
114%
EBIT
423,740
229,881
84%
958,535
(777,334)
223%
16.521
(159,443)
110%
Profitbeforetax
390,222
223,750
74%
1,644,110
(623,171)
364%
166,934
(146,528)
214%
Profitaftertax
316,551
33,871
835%
1,644,110
(623,171)
364%
166,934
(146,528)
214%
EBITDARmargin
49.3%
43.3%
6ppt
42.4%
9.7%
52ppt
20.8%
7.3%
28ppt
CoreOperating
Profit/(Loss)
332,879
134,720
147%
334,174
431%
10,453
(36,528)
129%
1,776,003
4Q2009 Change
(IDRmil) yoy
Appendix 2
MAA
TAA
IAA
StaffCosts
0.46
0.51
0.50
FuelandOil
1.46
1.70
1.91
UserChargesandStationExpenses
0.33
0.55
0.29
MaintenanceandOverhaul
0.22
0.33
0.85
Aircraftrelatedcost
0.06
0.99
0.90
Depreciation&Amortisation
0.74
0.04
0.03
Others
0.37
0.05
0.19
Sales&Marketing
0.16
0.39
0.20
TotalCost/ASK
3.81
4.55
4.86
19
Appendix 3
TAA
IAA
Financialyear
ended31
December
2010
2010
(RM000)
2009
(RM000)
Revenue
3,392,772
3,178,854
26%
12,390,632
9,325,988
33%
2,764,049
2,016,626
37%
EBITDAR
1,735,325
1,364,232
27%
4,251,637
849,309
401%
812,588
217,604
273%
EBITDA
1,669,633
1,257,162
33%
2,051,046
(863,055)
338%
322,542
(208,067)
255%
EBIT
1,148,717
809,520
42%
1,927,866
(982,491)
296%
307,231
(220,132)
240%
Profitbefore
tax
1,099,298
622,288
77%
2,845,614
(808,990)
452%
474,409
(189,250)
351%
Profitafter
tax
1,066,877
506,268
111%
2,845,614
(808,990)
452%
474,409
(189,250)
351%
43.5%
42.9%
0.5ppt
34.3%
9.1%
25.2ppt
29.4%
10.8%
18.6ppt
EBITDAR
margin
Change
2010
2009
Change
2010
yoy (THB000) (THB000) yoy (IDRmil)
2009
Change
(IDRmil) yoy
20
Appendix 4
2010
2009
Change
(%)
Passenger Carried
16,054,738
14,253,244
Capacity
20,616,120
19,016,280
78
75
3ppt
ASK (mil)
24,362
21,976
10.9
RPK (mil)
18,500
15,432
19.9
Number of stages
Average stage length (km)
114,534
1,183
105,646
1,166
8.4
1.5
53
48
10.4
2010
2009
Passenger Carried
5,704,832
4,988,315
Capacity
7,317,097
6,558,768
78
76
ASK (mil)
7,604
6,356
19.6
RPK (mil)
5,923
4,811
23.1
Number of stages
Average stage length (km)
41,823
1,034
39,388
955
6.2
8.3
19
20
2010
2009
Thai AirAsia
Indonesia AirAsia
12.6
8.4
Change
(%)
14.4
11.6
2 ppt
Change
(%)
2010
2009
25,680,609
33,058,197
78
22,703,455
30,276,656
75
13.1
9.2
3ppt
ASK (mil)
RPK (mil)
38,706
29,607
33,942
24,378
14.0
21.5
Number of stages
Average stage length (km)
Size of fleet at quarter end
186,025
1,176
90
173,297
1,100
84
7.3
6.9
7.1
Passenger Carried
Capacity
Load Factor (%)
-5.0
Change
(%)
Passenger Carried
3,921,039
3,461,896
Capacity
5,124,980
4,701,608
77
74
ASK (mil)
6,740
5,610
20.1
RPK (mil)
5,183
4,134
25.4
Number of stages
Average stage length (km)
29,668
1,310
28,263
1,179
5.0
11.1
18
16
12.5
AirAsia Group
13.3
9.0
3ppt
Appendix 5
AirAsiahasinvestmentsof48.9%inbothTAAandIAA
TheaviationlawsofThailandandIndonesiarequireforeignshareholdingstonotexceed50%
interestintheseentities
Basedontheshareholders agreementsfortheseentities,TAAisconsideredtobeajointly
controlledentityandIAAisconsideredtobeanassociateofAirAsia.
Thebasisofthisconsiderationisduetothevariouscovenantsintheagreementswherebyinthe
caseofTAA,keydecisionsaretakenjointlyandinthecaseofIAA,AirAsiahasonlysignificant
influence
AccountingConsiderations
AirAsiasaccountingtreatmentforitsinvestmentsinIAAandTAAisinfullcompliancewith
InternationalFinancialReportingStandards(FRS)
TheIFRSappliedareFRS131AccountingforJointyControlledEntities (IFRS31)whichappliesto
TAAandFRS128 AccountingforAssociates (IFRS28)whichappliestoIAA
TAAandIAAareaccountedforusingtheequitymethodofaccountingpertherespectiveStandards
ConsolidationofTAAandIAAisstrictlyprohibitedbytheIFRSunlesstheshareholderarrangements
change,whichresultinAirAsiahavingcontrol.AirAsiacanaccountforallthelossesofTAAandIAAif
itassumesobligationsforallliabilitiesofTAAandIAAwhichwillobviouslybedetrimentaltothe
22
shareholdersofAirAsia
Theequitymethod isamethodofaccountingwherebytheinvestmentisinitiallyrecognised
atcostandadjustedthereafterforthepostacquisitionchangeintheinvestorsshareofnet
assetsoftheinvestee.Theprofitorlossoftheinvestorincludestheinvestor'sshareofthe
profitorlossoftheinvestee.
FRS128andFRS131providethatifaninvestorsshareoflossesofanassociateorjointly
controlledentityequalsorexceedsitsinterestintheassociate,theinvestordiscontinues
recognisingitsshareoffurtherlossesunlesstheinvestorhasincurredlegalorconstructive
obligationsormadepaymentsonbehalfoftheassociate.
Consequently,astheshareoflossesforbothTAAandIAAhaveexceededthecostof
investmentintheseentities,AirAsiahasinprioryearsfullyprovidedforthecostof
investmentinbothTAAandIAA(amountingtoRM12millionandRM4millionrespectively),and
discontinueditsrecognitionofshareofanyfurtherlosses,asrequiredbytheStandard,asit
hasnotprovidedanylegalorconstructiveobligationsormadepaymentsonbehalfofthe
associateorjointlycontrolledentity.
23