Transcription
Corporate PresentationMarch 20201Strictly private and confidential
LEGAL DISCLAIMERInformation contained in our presentation is intended solely for your personal reference andis strictly confidential. Such information is subject to change without notice, its accuracy isnot guaranteed and it may not contain all material information concerning the Company.Neither we nor our advisors make any representation regarding, and assumes noresponsibility or liability for, the accuracy or completeness of, or any errors or omissions in,any information contained herein.In addition, the information contains projections and forward-looking statements that reflectthe Company’s current views with respect to future events and financial performance. Theseviews are based on current assumptions which are subject to various risks and which maychange over time. No assurance can be given that future events will occur, that projectionswill be achieved, or that the Company’s assumptions are correct. Actual results may differmaterially from those projected.This presentation is strictly not to be distributed without the explicit consent of Company’smanagement under any circumstances.2Strictly private and confidential
AgendaLatest updatesThe AirAsia story: Achieving the unthinkableStrengthening our underlying airline businessDigitalising the airlineAirAsia 3.0 & Leveraging our data to create platforms3Strictly private and confidential
4Q 2019 Key HighlightsDespite P&L loss of RM385mil, we view the results positively.Core PAT of RM45 mil even after investing in digital infrastructureImportantly, we reported a positive operating cashflow postoperating lease reported of RM728mil.RM milReported PAT-385Note 32 one-offs102Share of losses of AirAsia India133Accounting alignment for associates74AirAsia.com, BigPay, RBV Others39Airline revenue grew 18% YoY on the back of 9% moreCore PATpassengers carried & 9% improvement in RASKLoad factor fell marginally to 82% due to change in pricing strategyAverage fare strengthen by 11% to RM190, leading to a 9% improvement in RASKCASK declined 4% as fuel price declined 9%MFRS 168245AirAsia Malaysia saw improved overall performance in 4QRevenue grew 5%. Pricing management has improved active fare management; RASK is stronger YoY by 7%AirAsia Philippines turned profitableAirAsia Indonesia IAA narrowing losses by 45%Growing Ancillary income strategy continues positive momentum, with it growing 16% YoY, faster than pax growthof 9%. Ancillary revenue makes up 23% of revenueDigital non-airline initiatives reports significant revenue growth YoY:BigPay revenue grew 280% to RM6mil. QoQ GTV is growing at 42%AirAsia.com revenue up 209%, recording RM11mil in revenueTeleport revenue up 50%, achieving RM147milBIG Loyalty grew their membership base by 48% YoY to reach 25.2mil members4Strictly private and confidential
4Q 2019 & FY2019 Financial HighlightsAirline revenueCore ProfitCore loss for 4Q19 improved 112% fromRM387mil to core profit of RM45milRobust airline revenue growth of18% for 4Q19 and 15% for FY19Operating CF (post operating lease)turned positive for 4Q19 andimproved by 298% in FY19 basis15%950RM million18%Operating Cash Flow45-385745430-286687401-387-70 Airline revenue grew 18% and 15% YoY in 4Q19 & FY2019: 4Q19: 7% growth in ASK and slight decline in load factor to 82%. Revenue growth driven by RASK increase of 9%. IAA RASK up 21% and MAA RASK up 7%. FY2019: 13% increase in ASK and high group load factor of 85%. PAA load factor gained 3ppts to 88%. 5% RASK growth led by IAA, growing 13%. MAA’s RASK is well managedat 1% despite irrational competition and weaker demand to HK & Macau Loss after tax narrowed 16% in 4Q19 but down 117% in FY2019 due to the following reasons: Absence of one-off gains of RM1.1bn seen in FY2018One-offs in 4Q19 includes RM12.9mil of one-off consultant costs for SLB, RM49mil tax provision and RM40mil on discount for a long term receivable (see note 32 to FS)Results weaker due to share of losses from AirAsia India of RM133mil in 4Q19, totalling RM280mil for FY19 (including prior year losses recognition)Other one offs include accounting policy realignment for associates of RM74mil for 4Q19 and RM46mil for FY19 and competition watchdog fine of RM10mil in 2Q19.Negative impact from MFRS16 adoption of RM82mil in 4Q19 and RM131mil in FY2019.MFRS137 related to accounting treatment of maintenance of owned vs leased aircraft, resulting in increase of maintenance expenses of 43% for FY19.Gestation losses of AirAsia.com, BigPay and RBV Others of RM39mil and RM189mil for 4Q19 and FY19 Despite irrational competition in Malaysia in 9M19, prolonged weak demand for HK and Macau routes & strong Baht dampening demand toThailand, we continue to deliver positive operating cash flow for both 4Q19 and FY2019. OCF turned positive for 4Q19 vs 4Q18 and on full yearbasis, OCF have expanded by 85% to reach RM1.58bil5Strictly private and confidential
Priorities for 2020; Dealing with Covid-19 Undertaking proactive mitigating actions to limit downside impact from Covid-19. We have actively managed our capacitysince early Feb. Post recent adjustment, we forecast the following ASK YoY changes for 1Q 2020:AirAsia.comAirlineMAA: -10%, TAA: -23%, IAA: 19%, PAA: 8%, AAI: 61%, AAJ: 45% We forecast group-wide load factor of 77% & 76% for 1Q2020 & 2Q2020 Aggressive marketing push. Have seen overwhelming responses on RM12 Malaysia domestic campaign of which resulted in30% incremental revenue MoM and 30% discount promotion across the network. Pursue market share as weaker airlines struggle to survive. Replacing cancelled international flights with more domestic andintra-Asean flights. Cash conservation mode. Stringent cost control internally. Hiring freeze for the airline business. No extending expiring leasedaircraft. Discussing with lessors on lease reductions. Negotiating lower fees with maintenance service providers. Lower than budgeted fuel price giving some cushion. Cooperation among stakeholders. Government and industry players coming together providing incentives, discounts & rebatesto airlines. Have received lower airport operation charges through lower landing and parking fees. Lower excise duty on fuel fordomestic Thailand. Leveraging on data to drive higher funnel conversion. Increase customer stickiness. Penetrate the ASEAN markets by increasing product offerings and creating new experiences on airasia.com6Strictly private and confidential
AgendaLatest updatesThe AirAsia story: Achieving the unthinkableStrengthening our underlying airline businessDigitalising the airlineAirAsia 3.0 & Leveraging our data to create platforms7Strictly private and confidential
The largest LCC in AsiaThe fourth largest airline in Asia6 airlines2 airlines275 aircrafts, in 8 airlines100 million passengers flown annually 600 million total passengers flown159 destinationsacross 23 MarketsOver 387 routes, including107 unique routes24 hubsOver 11,000 flights per week*Fleet size and data as at 31 December 20198Strictly private and confidential
Wide digital reach via AirAsia.com, mobile app and social 8,000,000 followers560Overmillionannual unique (web&app) visitorsOver40Overmillionmobile app download2,000,000 followersOver15Overmillioncontactable members2.96%annual conversion rate2,200,000 followersHits from over240Overdifferent countries1,300,000 followers76%Sales via internet53 millionOvertotal fans and followers*Data as at September 20199Strictly private and confidential
Dividends 2019: special RM0.90 payable in 29 Aug2019; 34% dividend yield 2018: Interim special dividend – totaling toRM0.64 for FY2018; 21.5% dividend yieldSpecial Dividends from Monetising Our Digital/Support AssetsGround Handling Service Cash proceeds received inJan 2018 SGD119.3 millionPilot & crew training centre Monetisation of 50%stake: Cash proceeds ofUSD100 million received inMid-Nov 201710Hotel & travel Sold 25% stake forUSD86 million in 2015 Sold remainder of 25%for USD60 million in Aug2018Aircraft leasing Sale of 79 aircraft and 14engines concluded forUSD1.085 billion in 4Q2018 Another 25 aircraft to transactfor USD768milStrictly private and confidential
AgendaLatest updatesThe AirAsia story: Achieving the unthinkableStrengthening our underlying airline businessDigitalising the airlineAirAsia 3.0 & Leveraging our data to create platforms11Strictly private and confidential
Fleet PlanFleet Expansion Across AOCs in December 2019*2020 Net Addition* December 2019 fleet excludes 2 third party leasesTarget aircraft financing for 2020: All on sale and leaseback. 20 11 28 30 30 41 39 30 30 30 6 countries:Note: Column chart includes 2 third party leasesFleet plan is subject to changesUpdated fleet plan as at 24 January 202012Strictly private and confidential
Strengthening Market ShareAirAsia’s Domestic Market Share & Rational Competition (4Q2019 vs pt1ppt4ppts3ppts1ppt3pptsSource : PaxIS13Strictly private and confidential
Improved performance by PAA & IAAAirAsia PhilippinesRevenue (Php mil)EBITDA (Php mil)PAT (Php mil)RASK (Php)CASK (Php)Pax (mil)Load factorAirAsia Indonesia4Q184Q19 .962.285% 20% 235% 214% 3% 36% 21% 4pptsRevenue (IDR mil)EBITDA (IDR mil)PAT (IDR mil)RASK (IDR)CASK (IDR)Pax (mil)Load factor4Q184Q19 831228,997-135,248555.80540.782.281% 45% 190% 45% 21% 5% 30% 1ppt EBITDA and PAT turned positive EBITDA turned positive while PAT losses narrowed Demand was strong with 25% increase in ASK and 21% increasein pax carried Demand was strong with 20% increase in ASK and 30% increasein pax carried Domestic market share was up 4 ppts to 23% CASK and CASK ex-fuel lowered by 36% and 26% YoYrespectively.Driven by 21% increase in RASK and efficient cost control asCASK and CASK ex-fuel reduced by 5% and 1% respectively. We managed to strengthen our domestic presence as ourmarket share improve by 2ppts to 4% Adding 3 aircraft in 2020 Adding 2 aircraft in 202014
AgendaData-driven organisationLatest updatesThe AirAsia story: Achieving the unthinkableDATAStrengthening our underlying airline businessDigitalising the airlineAirAsia 3.0 & leveraging our data to create platforms15USERSCOEDATA GOVERNANCEStrictly private and confidential
We have a lot of Data to drive ecosystem expansionBIG Data and Real-time InsightsEngine & ComponentContact DetailsFOMAXTransactionsDemographicOnline ActivityMaintenanceFeedbackLoyaltyMobile ActivityAircraftGuestsSocial DataSpeedTransactionsLifestyle DataCabin Baggage gers MovementTemperatureLocationTerminalAvailable data sourceCounterTransactionsPotential new data source16AerobridgeMovementStrictly private and confidential
Data taking us to new heightsPrioritiesto Focus OnRevenue GainCost ReductionVerticalsto Work OnFuel CostOperationsEfficiencyAncillaryPricing /BundlingPromos /RewardsGoalsto AchieveIncreaseFuel CostEfficiencyIncrease CostEfficiency rive MoreTrafficSkill SetsRequiredData Science17Strictly private and confidential
Staying true to being low-costOur top priority, ALWAYS.LowerairportchargesPredictivemaintenance toincreaseefficiencyDriving fuel usagereduction throughdata analyticsAdoption of ‘Agile’organisationstructureNew A321neo aircraftthat are fuel efficient &have lower cost perseatMedia cost on adowntrend withpersonalisation18Strictly private and confidential
AgendaLatest updatesThe AirAsia story: Achieving the unthinkableStrengthening our underlying airline businessDigitalising the airlineAirAsia 3.0 & Leveraging our data to create platforms19Strictly private and confidential
Growth in 2020 and beyond: AirAsia 3.0Digital Bank &InsuranceLogisticsLifestyle &EntertainmentMarketplaceTravel and financialplatform of AseanDataAirAsia BIG Loyalty points - BIGLIFEAirAsia ecosystem comprises the Group’s core airline network operations, travel and lifestylecommerce platform, financial and insurance services, logistics services, as well as lifestyle &entertainment affiliates20Strictly private and confidential
Corporate structure reorganisationSetting the right pillars towards becoming a travel and financial platform companyAirAsia GroupAirlinesAirAsia.comRedBeat VenturesOURSHOPTeleportBigPayCountry AOCsSantan/T&CoAirAsia BIG LoyaltyOther non-airline investments21
We are investing in peopleBuilding blocks laid for a platform businessLye Kong Wei,Chief of Data Science(Formerly from Grab)Fabrice Marie,Head of Information Security(Formerly from Lazada)Elias Vafiadis,Head of Software Engineering(Formerly from Expedia)AirAsia Software Engineering & Technology CenterBangalore, India222Strictly private and confidential
AirAsia.com - All-in One Travel and Lifestyle MarketplaceNew enhanced homepage UX/UIon web & mobile23Strictly private and confidential
AirAsia.com addressable marketOUR VISIONAsean interneteconomy marketsize (GMV, US bn,306By sector4133Now we are establishing AirAsia.com as aall-in-one travel and lifestyle marketplaceRide-hailing(Online food delivery,online transport) Transportation Food deliveryOnline media(Subscription music &video, online gaming,online advertising) Media Beauty CommunityMaintainingour current 10%marketshare willyield us apotentialGBV ofUS 31bn in2025E Lifestyle deals OURSHOPTHENBefore setting upAirAsia.com as aseparate entity:In 2019, we estimatewe had 10% marketshare of the onlinetravel space100Ride-hailing13Online media14E-commerce38Online travel79352019ESource: Google & Temasek / Bain, e-Conomy SEA 2019153E-commerce Activities Flights(direct & aggregator)Online travel(Online vacationrentals, Online hotels,online flights) Hotels Holiday packages Post-booking2025E Insurance, fintech24Strictly private and confidential
BigPay - Financial SupermarketAsia’s Money App Digital challenger bankfor Southeast Asianmillennials and travelersDemocratise financialservices with simple andaffordable solutions fore-wallet, remittances,and lending850k userse-MoneyAdvanced money management25LoansRemittanceStrictly private and confidential
AirAsia Group Belly Space Consolidation/PartnershipsExisting cargo supply chain is ripe for disruption:AirAsia Group Belly Space Consolidation/PartnershipsJan 2019Aug 2018Feb 2019Apr 2019May 2018Jul 20181Q 20201Q 2020Apr 20197-8 Airlines inpipelineFull Year 2019 :Revenue of RM481 mil.Target for Full Year 2020 :Revenue of RM700 mil226Strictly private and confidential
Building Teleport to enable direct businesses and consumersOpening our logistics infrastructure to social sellersSocial Commerce (C2C) is growingfaster than ride-hailing in AseanASEAN includes – MY, PH, TH, ID, VN, SG (ASEAN6)2018-2025 Social commerce estimated at 50% of formal e-commerce segment2Sources: Google Temasek Reports, Nomura research, Euromonitor, eCommerceiQ, news runsNote: Illustrative mockup of product27Strictly private and confidential
Key to our platform strategy is our low customer acquisitioncost built over the last two decadesAsean interneteconomy marketsize (GMV, US bn,306By sector41100Ride-hailing13Online media14E-commerceRide-hailing(Online food delivery,online transport)33Online media(Subscription music &video, online gaming,online n180mnVNG, Razer1.79.9Lazada, Tokopedia,Shopee, Bukalapak, etc38352019EActive users, from2015 to 201949mn150mnAirAsia’s annual unique(web&app) visitors:79Online travelAsean unicorns & funding in 2016-1H19 (US bn)Online travel(Online vacationrentals, Online hotels,online flights)1.2Traveloka560mn2025ESource: Google & Temasek / Bain, e-Conomy SEA 201928Strictly private and confidential
AirAsia ValuationMarket DominanceVisitors ( per month)Daily active usersHotel nights for esia/ASEAN65 million22.2 million750 millionMAU: 18.6mnMAU: 28 million 2m0.8mnn/aRide-hailing: 4mnRide-hailing: 1.8m 500k 100k352mnn/an/a40mn/an/a 4k303k(via Mastercard)(300k food merchants)App Downloads 40 million30 million 250 million 110mn 100mnValuationUS 0.8 bilUS 4.0 bilUS 17.3 bil US 10bn US 10bnSource: Publicly available company data292Strictly private and confidential
THANK YOU&APPENDIX30
4Q19 Financial & Operational Performance - SubsidiariesKey IndicatorsPassengers 3,2878,684,89310,205,214 10,608,264%4Q18IAA4Q19%4Q18PAA4Q19 2%1,724,8362,238,752 30%1,861,0182,245,583 21% 4%2,090,8802,764,080 32%2,084,0402,648,700 27% 2ppts8281 -1ppt8985%8482RPK (million)10,56910,671 1%2,3322,778 19%2,0602,467 20%ASK (million)12,63012,800 1%2,8683,429 20%2,3732,956 25%1,985,5772,017,960 2%522,194567,929 9%429,833528,287 23%Average Fuel Price (USD/ Barrel)8978 -11%9087 -3%10999 -9%Domestic market share (%)6160 -1ppt24 2ppts1923 4pptsRevenue (million)RM 1,859RM 1,952 5% IDR 1,317,762IDR 1,905,831 45%PHP 5,790PHP 6,924 20%RASK14.26 sen15.22 sen 7%IDR 459.49IDR 555.80 23%PHP 2.42PHP 2.35 -3%CASK15.33 sen16.31 sen 6%IDR 567.69IDR 540.78 -5%PHP 3.06PHP 1.96 -36%9.55 sen11.17 sen 17%IDR 342.26IDR 339.39 -1%PHP 2.02PHP 1.50 -26%Load Factor (%)Fuel consumed (Barrels)CASK Ex-Fuel31 -4pptsStrictly private and confidential
4Q19 Financial & Operational Performance - Associates4Q18TAA4Q19%4Q18AAI4Q19Passengers Carried5,501,9385,424,283 -1%1,933,3372,685,418Capacity6,395,6706,272,148 -2%2,253,0608686 -RPK (million)5,4526,272 ASK (million)6,4606,3981,174,807OPERATIONALKey IndicatorsLoad Factor (%)Fuel consumed (Barrels)Average Fuel Price (USD/ Barrel)FINANCIALDomestic market share (%)Revenue (million)%4Q18AAJ4Q19 39%70,778137,873 95%3,099,240 38%98,820191,400 94%8687 1ppt7272 -15%2,0942,921 40%77134 75% -1%2,4103,334 38%107187 74%1,178,800 -431,384610,285 41%16,98232,924 94%10287 -15%127109 -14%8775 -14%3129 -2ppts67 1pptn/an/a-- 4%INR 6,417INR 10,576 65%JPY 428JPY 1,156 170%THB 9,655 THB 9,998%RASKTHB 1.52THB 1.58 4% 266 INR cents317 INR cents 19%JPY 3.99JPY 6.24 57%CASKTHB 1.64THB 1.59 -3% 341 INR cents347 INR cents 2%JPY 15.44JPY 12.41 -20%CASK Ex-FuelTHB 1.01THB 1.09 8% 180 INR cents205 INR cents 14%JPY 13.14JPY 10.38 -21%32Strictly private and confidential
FY19 Financial & Operational Performance - SubsidiariesOPERATIONALKey Indicators%FY18IAAFY19%FY18PAAFY19%Passengers Carried32,332,497 35,038,498 8%5,238,0207,967,267 52%6,866,8628,553,305 25%Capacity38,044,614 41,633,436 9%6,412,8609,530,460 49%8,079,4809,720,720 20%8584 1ppt8284 2ppts8588 3pptsRPK (million)41,22543,055 4%7,22810,566 46%7,5099,761 30%ASK (million)48,45250,727 5%8,88012,629 42%8,92911,286 26%7,682,6387,947,325 3%1,916,4762,042,010 7%1,642,4582,014,287 23%8581 -5%8577 10%10394 -9%Revenue (million)RM 7,219RM 7,510 4% IDR 3,768,678IDR 6,732,005 79% PHP 20,959PHP27,353 31%RASK14.38 sen14.53 sen 1%IDR 473.14IDR 533.15 13%PHP2.34PHP 2.42 3%CASK13.41sen14.90 sen 11%IDR 578.83IDR 546.15 -5%PHP 2.62PHP 2.38 -9%7.85 sen9.65 sen 23%IDR 368.42IDR 345.44 -5%PHP 1.62PHP 1.51 -7%Load Factor (%)Fuel consumed (Barrels)Average Fuel Price (USD/ Barrel)FINANCIALFY18MAAFY19CASK Ex-Fuel33Strictly private and confidential
FY19 Financial & Operational Performance - AssociatesOPERATIONALKey Indicators%FY18AAIFY19%FY18AAJFY19%Passengers Carried21,568,733 22,149,474 3%6,830,7579,261,439 36%261,714485,016 85%Capacity25,235,346 26,078,790 3%8,218,26010,430,820 27%329,040619,764 88%8389 6ppts8078 2ppt8585 -RPK (million)21,24322,670 7%7,20810,059 40%278527 90%ASK (million)25,01926,940 8%8,56811,226 31%349670 92%4,574,3724,939,525 8%1,557,4262,044,865 31%56,384114,328 103%9892 -6%123109 -12%8077 -4%THB 38,905 THB 40,181 3%INR 22,311INR 33,180 49%JPY 1,877JPY 4,022 114%Load Factor (%)Fuel consumed (Barrels)Average Fuel Price (USD/ Barrel)FINANCIALFY18TAAFY19Revenue (million)RASKTHB 1.59THB 1.51 -5%261 INR cents296 INR cents 13%JPY 5.37JPY 6.03 12%CASKTHB1.57THB1.53 -3%333 INR cents343 INR cents 3%JPY 17.82JPY 12.89 -28%CASK Ex-FuelTHB 0.98THB 1.01 3%180 INR cents204 INR cents 13%JPY 15.57JPY 10.86 -30%34Strictly private and confidential
Ancillary model is workingFY19 Ancillary revenue up 31%; 23% of revenueNon-airline ancillary up 189% YoYAirline ancillarygrew 11% YoYFull Year Highlights: FY19 ancillary grew 35%; 23% of revenue. 4Q19ancillary grew 16%Airline ancillary grew 11% YoYNon-airline ancillary grew 189% YoYPAA ancillary grew 41%; IAA ancillary 33%Seat selection up 24% to RM204milBaggage up 17% to RM1,156milTeleport achieved its target of RM400mil, growing132% to RM481milBigPay up 277% to RM16milOptimised website performance by 40% reducing loadtimesLaunched automated series of emails under AncillaryPost Purchase Journey to upsell products within 30days prior to guest’s departure date35RM2,092milNon-airline revenuegrew a significant RM697mil189% YoYStrictly private and confidential
Fuel Hedging Our Group’s fuel hedging strategy is based on our forward sales booking Latest Brent hedging:AirAsia Group20202021Q1Q2Q3Q4Q1Q2Q3Q4Current Hedge Ratio (Brent)80%71%70%74%20%20%19%18%Average Brent Hedge rage Hedge Cost59.7159.45 18%-21% of Q1 2020 to Q3 2020 crack hedges in place, ranging from an average crackhedge of US 8.42 to US 11.89Note: As at 25 February 202036Strictly private and confidential
Digital strategy gaining momentumairasia.com GTV grew 42% QoQDownloads 1 million users; 20% growth QoQLargest digital e-money issuer in Malaysia by transactional volumeIn Q4, BigPay launched its remittance product - offering seamless, fast and low cost transfer toany banks in India, Singapore, Indonesia, Philippines, Thailand, Nepal and Bangladesh FY19 Revenue of RM481mil beat target of RM400mil4Q19 tonnage up 24% YoY while global industry contracted 3%In 4Q2019, signed a direct interline agreement with leading air cargo provider Lufthansa Cargo Revenue grew more than threefold to RM11.1milGBV of RM5.5bil in 4Q2019, up 15% YoYIn 4Q2019, AirAsia.com expanded offering to include flights of other airlines, powered by Kiwi.comand launched AirAsia Deals, inclusive of lifestyle deal bundlesFor better guests engagement and user experience, we have launched in-app F.A.C.E.S and chat roomtracking, alert guests via email upon name changes, optimised ancillary caching for improvedperformance and optimised website performance by 40% reducing load timesAirAsia.com offers 11 products, including Flights, Hotels, Holiday Packages, Activities, Insurance,Duty Free 37Strictly private and confidential
AirAsia.com OverviewBusiness Summary Incorporated in 2019, AirAsia.com is a regional web and mobile appplatform for travel and lifestyle bookings in Asia Offers consumers travel and lifestyle products that are available forpurchase using various payment methods, including loyalty pointsCOMMERCEBest dealsfor travel &lifestyleCONTENTCreativevisuals &stories, sharingof experience Expanding beyond AirAsia’s airline network, AirAsia.com featuresglobal flights operated by other peer airlines and both proprietary andnon-proprietary travel and lifestyle inventories for consumers tochoose from Built travel and lifestyle ecosystem through strategic partnerships withlocal and regional partners working as earn and burn channels ofloyalty points for consumersCOMMUNITYGlobal community to driveengagementProducts & ServicesTravelKaren Chan (CEO) Flight Hotel / VacationRental Flight Hotel Transport Tours Activities Insurance Itinerary BuilderLifestyle ShopDuty FreeF&BHealth, FitnessEventsTicketingServices38Content Media Content(Print Digital) InflightEntertainment Infrastructure(Inflight WiFi) PodcastBeautyB2B Content drivenbeauty marketplace Cosmetics Wellness Skincare Fragrance Haircare Marketplace forcomprehensive andproprietary contentand inventory forother businesses toplug-in and useStrictly private and confidential
BigPay OverviewBusiness Summary Launched in 2018, BigPay aim to democratize financial services inAsia by building a digital bank that offers consumers e-wallet service,remittance and lending Value proposition includes easy user experience, usability viaMastercard’s extensive network, issuance of Big Points upon top up oruse, zero foreign exchange rate charged during international travels,and zero booking fees when booking on AirAsia.comMake financial services better value, moretransparent and fairer for everyoneKey Features Native iOS and Android build Latest tech stack & proprietary software Seamless, mobile-only user experience Bank grade and biometric security Peer-to-peer payments & split bills Fully automated spending analytics In-app card / account management Issue Mastercard / Visa cardAirAsia Big Pointsearn with daily spendBest Exchange Ratewhen spending abroadSave Moneyon AirAsia flightsInstant Money Transferto your friends for freeProprietary LicencesExpense Analyticsin real timeChristopher Davison (CEO)Former Director of Clearwater PartnersFormer Investment Manager at TalisCapital Limitede-MoneyRemittanceLending39Strictly private and confidential
Teleport OverviewBusiness Summary Today, a consolidator of belly capacity for the AirAsia group of airlines,enabling cargo carriage for businesses across 110 cities Global network reach through partner airlines beyond Asia coveringUS, Europe, Middle East and Australia/New Zealand Our goal is to re-order the supply chain, with the airport as thedistribution center of the future, and make same-day cross-borderfulfillment a realityAirAsia Group Belly Space Consolidation/Partnerships We intend to open our platform and infrastructure to empowerconsumers and small businesses across Southeast AsiaAffordable Air FreightJan 2019Now: AirAsia NetworkAug 2018Feb 2019Next: 8 Major Asean CitiesApr 2019May 2018Jul 20181Q 20201Q 2020Apr 2019Aim: 4 Capital Cities7-8 Airlines inpipelineOffering Door-to-Door Cross Border Logistics ServicesPete Chareonwongsak (CEO)Former COO at AirAsia PhilippinesFormer Group Head of BusinessDevelopmentFirst Mile CollectionPartner WarehouseCustoms ClearanceTransportationLast Mile DeliveryParcel collection in origincountry (warehouse / pickup / drop off points)Consolidation and sorting byconsignee for final deliveryat destination countryOutbound and inboundcustom clearance in originand destination countriesCargo terminal andwarehouse as well as crossdocking for final delivery legIdentify various last milepartners based on items40Strictly private and confidential
BigLife OverviewBusiness SummaryProducts & Services Formally known as Big Loyalty and rebranded in 2019, BigLife isAirAsia’s frequent flyer program aiming to power AirAsia’s greaterecosystem with its loyalty points as a high utility digital currency Offers consumers earning opportunities when transacting with anecosystem partner and also offers consumers the option to purchasetravel and lifestyle products using the user’s point balance Provides additional benefits for its members such as exclusivediscounts and priority access to sale inventories Tied to AirAsia’s single sign on to maximize value for users and createa wholistic profile of users’ behavioral patternsPoints Earn & Burn Earn and use points at travel andlifestyle partner channelsCo-Branded Cards Earn extra Big Points when spending on theco-branded credit cardsPoints Exchange Convert your other (Citi, CIMB, Maybank) points toBig Points on Big Exchange points marketplaceMajor Customer Value PropositionsSpencer Lee (CEO)Exclusive BIG Memberdiscounts at up to 90%Redeem short haul flightsfrom as low as 500 BIG PointsPay with BIG Points andsave more on flight bookingsShop online and earn BIG Pointsfor every cash spent24-hour priority accessto AirAsia salesEarn and save BIGwith Fave dealsFull flight redemptionfor free flightsRewards differentiatedby membership statusesFormer Head of Commercial atAirAsia Malaysia41Strictly private and confidential
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AirAsia’s first time participating in the DowJones Sustainability Index assessment 2019Ranked Top 10 in the airline category*The only ASEAN airline in the Top 10The only LCC in the Top 10*24 airlines participated431. Air France KLM2. ANA Holdings Inc3. China Airlines Ltd4. LATAM Airlines Group SA5. Avianca Holdings SA6. Japan Airlines7. Alaska Air Group8. Lufthansa AG9. Delta Air Lines Inc10. AirAsia Group Berhad11. Southwest Airlines Co12. American Airlines Group Inc
Pricing management has improved active fare management; RASK is stronger YoY by 7% . Pursue market share as weaker airlines struggle to survive. Replacing cancelled international flights with more domestic and . 2019; 34% dividend yield 2018: Interim special dividend - totaling to RM0.64 for FY2018; 21.5% dividend yield .
