“Now Everyone Can Fly” “Now Everyone Can Fly” 2005 Fourth Quarter & Full Year Results 2005 Fourth Quarter & Full Year Results 26 th August 2005 26 th August 2005
Disclaimer Now Everyone Can Fly Information contained in our presentation is intended solely for your personal reference and is strictly confidential. 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 contains 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 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 is strictly not to be distributed without the explicit consent of Company management under any circumstance. 1
Agenda Now Everyone Can Fly 1. Highlight & Events 2. Results Commentary 3. Cost Management 4. Manchester United Sponsorship 5. Outlook Question & Answers 2
CONFIDENTIAL CONFIDENTIAL Now Everyone Can Fly 1. Highlight & Events 1. Highlight & Events
Key Features Now Everyone Can Fly � NPAT of RM112m for FY05 – capacity, fuel and deferred tax; but profits still grew by 128% YoY – profit growth superior to any other listed carrier in Asia-Pacific � Passenger numbers grew 55%, our foot print doubled and our revenue grew by 70% � Encouraging performance by the associates � Group fleet rose from 17 to 27 aircraft � AirAsia sponsors Manchester United, 1 st August – amazing marketing potential � LCC terminal construction progressing ahead of schedule – expect to commence operations by end of first quarter 2006 4
Reconciliation and deferred tax Now Everyone Can Fly Profit item RM '000 � Aircraft and fuel had the Profit as per IPO 159,882 greatest profit impact add/(subtract) � Deferred tax only calculated in aircraft shortage (77,545) the final quarter lower related opex 70,462 � But for its inclusion, AirAsia higher fuel charges (15,405) would have hit RM126 million 137,394 mean analyst estimates additional deferred tax (4,612) � Cash element amounts to <RM1 other costs (1,612) million associate company variance (19,523) FY05 NPAT 111,647 5
Doubled Number of Routes in 2005 Now Everyone Can Fly Destinations Period Served* Jan 2002 6 Sep 2002 7 Dec 2002 8 Mar 2003 10 Jun 2003 11 Sep 2003 13 Dec 2003 15 Mar 2004 20 Jun 2004 26 Aug 2004 28 Sep 2004 33 Dec 2004 48 Jun 2005 52 * Excludes Kuala Lumpur and Bangkok as destinations We fly to more destinations in SE. Asia than MAS or SIA. We have domestic operations in domestic operations in We fly to more destinations in SE. Asia than MAS or SIA. We have three markets, a feat not easily duplicated by any airline. three markets, a feat not easily duplicated by any airline. 6
Consistent passenger growth Now Everyone Can Fly Passengers Flown by AirAsia Group ( Passengers Flown by AirAsia Group (‘ ‘000) 000) 6,289 CAGR 106% pa 122% growth (2005 vs. 2004) 2,839 1 ,744 1 ,630 1 ,561 1 ,481 1 ,354 61 1 291 M ar-2001 Jun-2002 Jun-2003 Jun-2004 1 Q 2Q 3Q 4Q 2005 � There is no stopping the LCC phenomenon 7
Load factor as expectation Now Everyone Can Fly ASK & RPK (million) and Load Factor (%) AirAsia Group ASK & RPK (million) and Load Factor (%) AirAsia Group 7000 78% ASK (Malaysia) ASK (Associat es) 76% 6000 Load Fact or 74% 5000 72% 4000 70% 3000 68% 2000 66% 1000 64% 0 62% 2002 2003 2004 2005 Not just any kind of growth, but HIGH QUALITY GROWTH 8
Profitability linked to fleet development Now Everyone Can Fly Aircraft Expansion Aircraft Expansion Indonesia 5 Thailand 3 2 Malaysia 2 8 6 6 6 4 22 21 20 19 13 7 3 2 Mar-01 Jun-02 Jun-03 Jun-04 Mar-05 Jun-05 Dec-05 E NOW � Slight shortage of originally stated number of aircraft - merely a delay in rollout 9
Impact of aircraft deployment delays Now Everyone Can Fly Capacity loss Capacity loss Capacity loss Capacity loss A ctual vs . Forecas ted A verage # A ircraft A ctual vs . Forecas t C apacity (m illion A SK ) 25.0 8,000 Shortfall = 15.4% 7,000 20.0 Shortfall = 11.8% 6,000 5,000 15.0 4,000 10.0 3,000 2,000 5.0 1,000 - - Q 1 Q 2 Q 3 Q 4 2005 Q 1 Q 2 Q 3 Q 4 2005 A ctual F orecast A ctual Forecast � We are 3.0 aircraft short of forecast � Resulting capacity loss equates to 869 million ASK (12% shortfall) 10
CONFIDENTIAL CONFIDENTIAL Now Everyone Can Fly 2. Results Commentary 2. Results Commentary
Operational Statistics Now Everyone Can Fly � Strong passenger growth – 44% growth for Q42005 vs. Q42004 – 55% growth for FY2005 vs. FY2004 � Effective capacity growth – 76% growth for Q42005 vs. Q42004 – 82% growth for FY2005 vs. FY2004 � Superior cost control – 8% improvement yoy for Q4 2.40/ASK US cents – 10% improvement yoy FY2005 2.22/ASK US cents � Improving fares and yield holding up value despite longer trip length – 19% improvement in fares for Q4 to RM150 – 9% improvement in fares for FY2005 to RM143 � Load factor as per Management’s expectations 12
Operational Statistics – Q4 Now Everyone Can Fly ∆ (% ) Operational Statistics Q4 -2005 Q4 -2004 Average Load factor 76% 78% # Passengers 1,203,456 838,247 44% Average fare (RM) 150 126 19% RPK (mn) 1447 843 72% ASK (mn) 1903 1080 76% Rev/ RPK (US cents) 3.63 3.56 2% Cost/ ASK (US cents) 2.40 2.62 (8% ) # aircraft (beginning) 19 12 # aircraft (end) 19 13 Average # aircraft 17.56 12.20 44% 13
Operational Statistics – FY2005 Now Everyone Can Fly ∆ (% ) Operational Statistics FY2005 FY2004 Average Load factor 75% 77% # Passengers 4,414,069 2,838,822 55% Average fare (RM) 143 131 9% RPK (mn) 4881 2771 76% ASK (mn) 6525 3592 82% Rev/ RPK (US cents) 3.59 3.74 (4% ) Cost/ ASK (US cents) 2.22 2.46 (10% ) # aircraft (beginning) 13 7 # aircraft (end) 19 13 Average # aircraft 16.30 9.50 72% 14
Thailand takes off Now Everyone Can Fly Thailand Statistics 2005 Q4 Q3 Q2 Q1 Average Load factor 73% 68% 69% 77% 84% 1,603,594 # Passengers 389,384 410,005 434,865 369,340 Average fare (RM) 111 125 120 115 91 RPK (mn) 1452 378 351 409 314 ASK (mn) 1982 560 508 544 371 Rev / RPK (US cents) 3.31 3.49 3.80 3.28 2.89 Cost / ASK (US cents) 2.66 2.81 2.64 2.57 2.89 # aircraft (end) 6 6 6 6 4 � Within a year, we are the market leaders in Thailand � Improving average fare and yields � Cost control on track with expectations 15
Profitability Now Everyone Can Fly ∆ (% ) Q4-2005 Q4-2004 FY2005 FY2004 ( RM ‘000) qoq yoy Revenue 199,508 113,595 666,250 392,690 76% 70% − EBITDAR 46,206 24,778 204,169 115,402 86% 77% − EBITDA 33,135 13,856 152,819 72,612 139% 110% − EBIT 25,566 8,608 126,103 61,318 197% 106 Profit before tax 26,184 7,051 125,478 58,071 271% 116% Net I ncome 16,108 (1,953) 111,635 49,067 na 128% ASK (million) 1903 1080 6525 3592 76% 82% � Profit before tax soared – 271% growth for Q42005 vs. Q42004 – 116% growth for FY2005 vs. FY2004 � Effective capacity growth – growth in capacity did not undermine profitability margin 16
Balance Sheet Now Everyone Can Fly Balance Sheet (RM Balance Sheet (RM’ ’ million) million) 899 938 953 Post IPO 150 161 60 49 46 35 29 17 3 -105 -337 -436 (*) -582 Note: (*) For the 15 months ended June 30, 2002 Mar-01 Jun-02 Jun-03 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 SHR Equity Net Debt � Consistently building shareholder value 17
Cash Generating Machine Now Everyone Can Fly Cashflow from Operating Activities (RM (RM’ ’ million) million) Cashflow from Operating Activities 113 -19 -12 -3 29 15 Mar-00 Mar-01 Jun-02 Jun-03 Jun-04 Jun-05 -146 (*) Note: (*) For the 15 months ended June 30, 2002 “Normalized CFO” is RM113m. RM259m is paid for aircraft and fuel deposits. Therefore CFO is ‘superficially’ depressed at RM146m 18
CONFIDENTIAL CONFIDENTIAL Now Everyone Can Fly 3. Cost Management 3. Cost Management
Cost Management Now Everyone Can Fly Cost / ASK (US cents) Cost / ASK (US cents) Cost / ASK 3.40 Non Fuel Cost 2.90 2.46 2.40 2.35 2.22 2.13 2.12 2.08 1.96 1.71 1.26 1.20 1.14 1.02 1.00 2002 2003 2004 Q1 Q2 Q3 Q4 2005 Malaysian Operations Superior cost containment despite fuel price impact 20
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