Malaysia Airports Holdings Bhd Building New Capabilities Managing Global Economic Downturn Challenges Media/Analyst Presentation H1 2009 Business Performance Update Faizal Mansor Chief Financial Officer, MAHB 27th August 2009
Outline Corporate Overview Headline KPIs Group Financial Highlights Airport Operations Review 2
Corporate Overview MAHB Share Price Performance vis-à-vis FBMKLCI and Competitors Normalised Share Price Performance 138 KLCI Index MAHB Jul-09 Jun-09 May-09 Apr-09 Mar-09 Feb-09 Jan-09 Dec-08 Nov-08 Oct-08 Sep-08 Aug-08 Jul-08 Jun-08 50 Company KLCI MAHB JAT AOT Hainan Meilan Guangzhou Beijing Shenzhen Shanghai Airport Avg Share price movement (YTD) 26.4% 45.9% (5.1%) 82.1% 58.4% 25.9% 12.6% 32.3% 25.8% 33.8% Strong defensive nature amidst volatile market conditions 3
Corporate Overview Shareholding Analysis 31 December 2008 30 June 2009 4
Outline Corporate Overview Headline KPIs Group Financial Highlights Airport Operations Review 5
Corporate Headline KPIs H1 2009 EBITDA & ROE Performance Measure EBITDA ROE FY2009 (Growth Assumptions) YTD H1 2009 0% pax growth -5% pax growth RM613 million RM591 million RM298 million 10.2% 9.70% 4.80%* Our EBITDA and ROE after represents 49% and 48% of the targeted headline KPIs assuming 0% pax growth * YTD ROE based on half year PAT over Total Shareholder Equity 6
Outline Corporate Overview Headline KPIs Financial Highlights Airport Operations 7
Group Financial Highlights Business Performance Overview Increase in PBT resulting from higher revenue and cost saving initiatives* 2009 (RM 000) 2008 (RM 000) Revenue 782,890 715,512 9.42 EBITDA 298,076 267,843 11.29 PBT 210,825 192,719 9.39 (688) 17,900 103.84 Nett Earnings 153,656 158,156 2.85 EBITDA Margin 38.07% 37.43% 0.64 PBT Margin 26.93 % 26.92% 0.01 Gearing 22.22% 6.44% 15.78 2.92 2.89 1.07 Discontinued Operations (SIC) Net Asset per share (RM) *Cost saving initiatives cross functional budget challenge, Value Management, LEAN Initiatives, and innovative procurement procedures 8
Group Financial Highlights ended 30 June 2008 Revenue Overview Revenue (RM 000) 6 months 2009 6 months 2008 Hotel 3% Project R&M Retail 7% 6m 2009 Agri & Horti 3% 18% Airport Operations Airport Services 608,073 524,315 15.97 Retail 162,878 148,732 9.51 Project Repair and Maintenance 50,450 48,407 4.22 Hotel 29,600 33,190 10.82 Airport Services 69% Non Airport Operations Agriculture & Horticulture 25,179 44,981 Consol Adjustment (93,290) (84,113) TOTAL 782,890 715,512 44.02 Project R&M 6% 6m 2008 Hotel 4% Retail 20% Airport Services 70% 9.42 Revenue from Airport Operations continues to grow at a high rate (15.97%) with retail at 9.51% (due to retail optimization plan) 9
Group Financial Highlights Revenue Analysis 2009 RM 000 2008 RM 000 Airport operations 721,041 629,372 14.57 Aeronautical 387,396 322,233 20.22 Non Aeronautical 333,645 307,139 8.63 - Retail and F&B 162,329 148,178 9.55 - Rental and others 171,316 158,961 7.77 61,849 86,141 28.20 9,973 12,331 19.12 Hotel 28,635 31,954 10.39 Agriculture and horticulture 23,241 41,856 44.47 782,890 715,512 9.42 % Aero to Non Aero over Total Revenue 46:54 41:59 % Aero to Non Aero in Airport Operations 54:46 51:49 Non Airport operations Project and R&M Total revenue Increase in domestic passengers by 3.5% Lower total crop harvested and average FFB price (2009:55,072MT/RM420 vs. 2008:59,150MT/RM707) 10
Group Financial Highlights Cost Analysis 09 (RM 000) 08 (RM 000) Direct Material 102,118 101,189 0.92 Direct Labour 39,677 39,513 0.42 Direct Overhead 19,425 15,992 21.47 Total COS 161,220 156,694 2.89 Staff Costs 146,747 130,599 12.36 Utilities and Supplies 95,362 80,533 18.41 Repairs and Maintenance 52,445 51,554 1.73 Travelling 2,515 3,057 17.71 Advertising and Publicity 2,318 8,804 73.67 Professional Fees 6,935 9,664 28.24 Quit Rent and Assessment 8,894 8,403 5.85 18,198 12,438 46.31 (48,975) 3,650 1,441.78 1,770 24,393 92.74 77,729-100 Total OPEX 363,939 333,095 9.26 Total Costs 525,159 489,789 7.22 Other Administrative Lease Rental Payable to Government Prov for D.Debts/ (write back) / (bad debt recovered) User Fee/ Revenue Share Increase in tandem with higher revenue Mainly due to KLIA 10th anniversary of KLIA and The Routes incurred in 08 whereas no significant expenses incurred in YTD 09 Reversal of lease rental of RM52 million based on Operations Agreement signed with GoM in Feb 09 Provision has been lowered since several debtors made settlement in June 08 11
Group Financial Highlights PBT Analysis PBT (RM 000) 2009 2008 205,277 147,265 39.39 3,069 13,717 77.63 Project Repair and Maintenance 5,695 5,903 3.52 Hotel 1,036 2,095 50.55 Agriculture & Horticulture 8,020 23,678 66.13 Consol Adjustment 591 (4,219) 210,825 192,719 Airport Operations Airport Services Retail Non Airport Operations TOTAL 9.40 Our Airport Services prove to be the most profitable revenue stream 12
Group Financial Highlights Balance Sheet Overview 09 (RM 000) 08 (RM 000) PPE 1,798 1,911 5.87 Concession Right 1,772 1163 52.41 Cash and Bank Balance 350 681 48.56 Trade Receivables 417 405 2.94 Trade Payables 76 107 28.18 Other Payables 666 389 71.42 0 827 ~ Borrowings 509 3 16,695.02 Gearing (%) 22.22% 6.44% 15.78 Concession Right Payable Additional Concession Rights of RM603m being capitalisation of accrued lease rental due to GoM Payment made for final dividend RM120m. Payment made to creditor mainly for LCCT extension, new corporate office, LHDN, construction cost for MIAC Payment of User Fee RM78 million. Borrowings made for the purpose of cash payment to GoM 13
Outline Corporate Overview Headline KPIs Group Financial Highlights Airport Operations Review 14
Airport Operations Business Performance Overview Revenue 09 (RM 000) 08 (RM 000) 770,951 673,047 14.55 37,652 37,277 1.01 808,603 710,324 13.84 (528,326) (484,891) 8.96 EBITDA 280,277 225,434 24.33 Depreciation and Amortisation (72,173) (66,337) 8.80 241 1,885 87.21 PBT 208,345 160,982 29.42 EBITDA margin 36.35% 33.49% PBT margin 27.02% 23.92% Other Operating Income Total Income Operating Cost Share of profits of Associate MAHB has maintained a strong standing despite the economic uncertainty and global health issues 15
Airport Operations Revenue Overview 09 (RM 000) 08 (RM 000) Aeronautical - PSC & PSSC 207,798 215,343 3.50 - Landing & Parking 91,081 93,299 2.38 - MARCS ERL & PSC 73,417-100.00 - Others 15,099 13,591 11.10 387,395 322,233 20.22 197,003 174,458 12.92 - Car Park 12,919 12,538 3.04 - Others 10,756 15,086 28.70 - Retail 162,878 148,732 9.51 Total Non-Aeronautical 383,556 350,814 9.33 Airport Operations Revenue 770,951 673,047 14.55 Total Aeronautical Non-Aeronautical - Rental & Commercial 16
Airport Operations Revenue Analysis (by Revenue Type) 2009 2008 17
Airport Operations Revenue Analysis (by Passenger and Aircraft Movement) 09 RM 000 08 RM 000 Total income per passenger movements 34.33 30.75 11.65 Aeronautical revenue per passenger movements 16.45 13.95 17.91 Non-Aeronautical revenue per passenger movements 16.29 15.19 7.23 1,508.97 1,319.30 14.38 143,930.76 129,763.29 10.92 5,618 5,474 2.63 47.91% 45.36% 2.55 Aeronautical revenue per aircraft movements Total income per employee Number of Staff Aeronautical revenue % of total income Revenue per passenger and aircraft movement has increased significantly 18
Airport Operations Operating Cost Analysis 09 RM 000 08 RM 000 126,832 117,396 8.04 93,116 80,188 16.12 (48,975) 3,650 1441.78 85,806 77,765 10.34 62,827 50,224 25.09 1,635 22,275 92.66 77,729-100.00 Other Operations Costs 129,356 133,392 3.03 Total 528,326 484,891 8.96 Staff Cost Utilities Lease Rental Retail - Direct Materials - Direct Overheads Provision/(write back) for doubtful debts Revenue Share/ User Fee Increase due to salary revision and annual increment Increase in operating cost (8.96% ) is lower than increase in revenue (14.55%) 19
Airport Operations Cost Analysis (by Passenger & Aircraft Movements) 09 RM 000 08 RM 000 22.43 20.99 6.87 2,057.92 1,985.26 3.66 25.50 23.40 8.94 Total cost per aircraft movements 2,339.05 2,256.86 3.64 Staff costs as % of operating cost 24.01% 24.21% 0.20 Total operating cost per Passenger movements Total operating cost per aircraft movements Total cost per passenger movements Marginal staff cost increase (as % of operating cost) due to operational excellence initiatives 20
Airport Operations Passenger Movement Analysis YoY 1.96% passenger growth led by domestic increase with International numbers holding steady 2009 ( 000) 2008 ( 000) KLIA International 8,885.0 8,871.8 0.15 Domestic 4,657.7 4,566.4 2.00 Total KLIA 13,542.7 13,438.2 0.78 International 1,438.7 1,447.2 0.59 Domestic 8,571.1 8,215.0 4.34 10,009.8 9,662.2 3.60 International 10,323.6 10,319.0 0.04 Domestic 13,228.9 12,781.4 3.50 Grand Total 23,552.5 23,100.4 1.96 Other Airports Total Other Total 21
Airport Operations Aircraft Movement Analysis YoY 5.12% aircraft movement growth, with Int l movements at 8.95% and domestic 3.22% 2009 ( 000) 2008 ( 000) KLIA International 69.1 62.7 10.11 Domestic 40.1 39.6 1.31 Total KLIA 109.2 102.3 6.71 18.7 17.9 4.90 Domestic 128.8 124.0 3.83 Total Others 147.5 141.9 3.96 87.8 80.6 8.95 Domestic 168.9 163.7 3.22 Grand Total 256.7 244.2 5.12 Other Airports International Total International 22
Airport Operations Cargo Movement Analysis Drop in cargo movement is in tandem with the global economic downturn and is expected to move in line with trade figures going forward 2009 (Million) 2008 (Million) KLIA International 230.0 315.9 27.19 Domestic 23.8 29.2 8.49 Total KLIA 253.8 345.0 26.46 International 61.2 95.6 35.98 Domestic 44.0 48.1 8.52 105.2 143.7 26.79 291.3 411.5 29.23 67.8 77.3 12.29 359.0 488.8 26.55 Other Airports Total Others Total International Domestic Grand Total 23
Summary MAHB is doing well despite global challenges Passenger and aircraft numbers are growing Our revenue efficiency per passenger and aircraft continues to improve We are managing uncertainties through internal initiatives (e.g. LEAN, Value Management, Continuous Improvement Programme and Business Process Improvements) Going forward, we are confident of riding out the uncertainties and delivering the Headline KPIs 24
Thank You