Malaysian Airline System Berhad Annual Report 04/05 (10601-W) Malaysian Airline System Berhad Annual Report 04/05 147 (10601-W) Financial Report
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146 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) Malaysian Airline System Berhad Annual Report 04/05 147 (10601-W) financial report Performance Highlights - 148 Expenditure - 149 Analysis of Airline Operations - 150 Revenue Composition - 151 Group Financial Highlights - 152 Corporate Charts - 154 Directors’ Report - 158 Statement by Directors - 162 Statutory Declaration - 163 Report of the Auditors - 164 Income Statements - 165 Balance Sheet - 166 Statements of Changes in Equity - 167 Cash Flow Statements - 168 Notes to the Financial Statements - 170 Statistics on Shareholdings - 219 List of Company Properties - 222 Glossary - 228 Form of Proxy Request Form 148 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) performance highlights 2004 2003 CHANGE GROUP 2005 2004 % Financial Total Revenue RM Million 11,364.3 8,780.8 29.4 Total Expenditure RM Million 11,046.8 8,591.2 28.6 Profit after Tax RM Million 326.1 461.1 (29.3) Shareholders’ Funds RM Million 3,318.7 3,024.0 9.7 Earnings Per Share Sen 26.0 36.8 (29.3) Dividend Per Share Sen 2.5 - - Cash Flow Per Share RM 0.47 0.94 (50.0) Operating Statistics Available Tonne Kilometres Million 10,299.9 8,413.1 22.4 Load Tonne Kilometres Million 6,728.5 5,628.6 19.5 Overall Load Factor % 65.3 66.9 (2.4) points Available Seat Kilometres Million 64,115.2 55,692.4 15.1 Passenger Kilometres Flown Million 44,226.1 37,659.0 17.4 Passenger Load Factor % 69.0 67.6 2.1 points Staff and Productivity Employee Strength 22,513 20,789 8.3 Available Tonne Kilometres Per Employee 457,509 404,690 13.1 Load Tonne Kilometres Per Employee 298,872 270,748 10.4 COMPANY Operating Statistics Available Tonne Kilometres Million 8,127.9 6,986.2 16.3 Load Tonne Kilometres Million 5,442.0 4,705.4 15.7 Overall Load Factor % 67.0 67.6 (0.9) points Available Seat Kilometres Million 64,115.2 55,692.4 15.1 Passenger Kilometres Flown Million 44,226.1 37,659.0 17.4 Passenger Load Factor % 69.0 67.6 2.1 points Aircraft Utilisation (Average) Hours Per Day 10.6 9.6 10.4 Staff and Productivity Employee Strength 20,087 18,712 7.3 Available Tonne Kilometres Per Employee 404,635 373,354 8.4 Load Tonne Kilometres Per Employee 270,921 251,464 7.7 Malaysian Airline System Berhad Annual Report 04/05 149 (10601-W) expenditure 2004 2003 CHANGE 2005 2004 GROUP RM MIL RM MIL % Staff costs 1,904.8 1,607.0 18.5 Depreciation 245.3 214.3 14.5 Fuel and oil 3,779.2 2,299.8 64.3 Handling and landing costs 2,113.1 1,875.0 12.7 Hire of aircraft and equipment 1,856.2 1,544.0 20.2 Finance charges 0.1 5.9 (98.3) Commission and incentives 658.4 591.1 11.4 Others 2,201.1 1,942.9 13.3 12,758.2 10,080.0 26.6 Less : Allocation of costs of domestic operations to PMB (1,711.4) (1,488.8) 15.0 11,046.8 8,591.2 28.6 COMPANY Staff costs 1,784.3 1,503.1 18.7 Depreciation 210.1 160.6 30.8 Fuel and oil 3,253.7 2,035.4 59.9 Handling and landing costs 1,781.0 1,566.5 13.7 Hire of aircraft and equipment 1,478.6 1,312.3 12.7 Finance charges 0.1 5.9 (98.3) Commission and incentives 556.3 517.8 7.4 Others 1,950.8 1,738.3 12.2 11,014.9 8,839.9 24.6 Less : Allocation of costs of domestic operations to PMB (1,711.4) (1,488.8) 15.0 9,303.5 7,351.1 26.6 Expenditure % 29.6 29.5 17.3 17.7 16.2 16.6 16.2 14.9 14.5 13.4 5.2 5.1 1.9 1.9 0.0 0.0 Staff Costs Depreciation Fuel & Oil Handling & Hire of Aircraft Finance Commission & Others Landing Costs & Equipment Charges Incentives GROUP COMPANY 150 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) analysis of airline operations (incl. freighters) by geographical route region 2004 2003 CHANGE 2005 2004 RM MIL RM MIL % ROUTE REVENUE Malaysia - - 0.0 Asia 1,656.4 1,356.2 22.1 Europe and Middle East 3,899.1 2,919.6 33.5 Australia and New Zealand 1,740.1 1,402.6 24.1 Africa and South America 275.8 223.6 23.3 Orient and North America 2,628.8 1,845.6 42.4 10,200.2 7,747.6 31.7 PASSENGER LOAD FACTOR POINTS Malaysia - - 0.0 Asia 63.8 66.1 (3.5) Europe and Middle East 71.9 68.4 5.1 Australia and New Zealand 67.5 70.9 (4.8) Africa and South America 77.8 66.8 16.5 Orient and North America 66.2 62.4 6.1 69.0 67.6 2.1 OVERALL LOAD FACTOR POINTS Malaysia - - 0.0 Asia 63.5 69.1 (8.1) Europe and Middle East 67.8 67.5 0.4 Australia and New Zealand 59.4 65.3 (9.0) Africa and South America 71.2 64.3 10.7 Orient and North America 65.4 66.4 (1.5) 65.3 66.9 (2.4) route revenue % 38.2 37.7 25.8 23.8 17.5 18.1 16.2 17.1 2.7 2.9 0.0 0.0 Malaysia Asia Europe and Australia and Africa and Orient and Middle East New Zealand South America North America 2004/2005 2003/2004 Malaysian Airline System Berhad Annual Report 04/05 151 (10601-W) revenue composition by category 2004 2003 CHANGE 2005 2004 RM MIL RM MIL % GROUP Passenger and Excess Baggage 9,097.7 7,407.6 22.8 Cargo and Mail 2,061.3 1,672.2 23.3 Airport Services 147.4 89.5 64.7 Charters 138.6 84.0 65.0 Others 1,349.5 859.6 57.0 12,794.5 10,112.9 26.5 Less: Traffic revenue of domestic operations to PMB (1,430.2) (1,332.1) 7.4 11,364.3 8,780.8 29.4 COMPANY Passenger and Excess Baggage 8,994.8 7,407.6 21.4 Cargo and Mail 813.3 748.7 8.6 Airport Services 147.4 89.5 64.7 Charters 115.4 62.6 84.3 Others 893.7 499.8 78.8 10,964.6 8,808.2 24.5 Less: Traffic revenue of domestic operations to PMB (1,430.2) (1,332.1) 7.4 9,534.4 7,476.1 27.5 revenue composition by category % 82.0 71.1 16.1 10.5 7.4 8.2 1.2 1.3 1.1 1.1 Passenger & Cargo & Mail Airport Services Charters Others Excess Beggage GROUP COMPANY 152 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) group financial highlights Cash Flow per Share (RM) 95/96 2.2 96/97 1.5 97/98 2.2 98/99 1.3 99/00 0.6 00/01 0.0 RM 01/02 1.5 02/03 1.1 03/04 0.9 04/05 0.5 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 Earnings/(Loss) per Share(sen) 04/05 03/04 02/03 01/02 95/96 33.3 00/01 99/00 96/97 43.8 98/99 97/98 (33.7) sen 97/98 98/99 (90.9) 96/97 95/96 99/00 (33.6) 00/01 (173.2) 01/02 (108.5) 02/03 38.7 03/04 36.8 04/05 26.0 Malaysian Airline System Berhad Annual Report 04/05 153 (10601-W) GROUP FINANCIAL HIGHLIGHTS Net Tangible Assets per Share (RM) 95/96 6.23 96/97 6.76 97/98 2.81 98/99 1.68 99/00 1.74 00/01 0.89 RM 01/02 1.98 02/03 2.04 03/04 2.41 04/05 2.65 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 Dividends per Share (sen) 95/96 7.5 96/97 10.0 97/98 2.0 98/99 2.0 sen 99/00 2.0 00/01 - 01/02 - 02/03 - 03/04 - 04/05 2.5 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 154 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) corporate charts Overall Capacity and Demand Million 12000 10000 8000 6000 4000 2000 0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Revenue Tonne Kilometres Available Tonne Kilometres Revenue Tonne Kilometres Available Tonne Kilometres Overall Load Factor Million Million % 1995/96 3,355 5,382 62.3 1996/97 3,707 6,149 60.3 1997/98 3,888 6,411 60.6 1998/99 4,030 6,649 60.6 1999/00 4,853 7,531 64.4 2000/01 5,379 8,055 66.8 2001/02 5,150 7,824 65.8 2002/03 5,497 7,978 68.9 2003/04 5,629 8,413 66.9 2004/05 6,729 10,300 65.3 Overall Load Factor % 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 Malaysian Airline System Berhad Annual Report 04/05 155 (10601-W) CORPORATE CHARTS Passenger Capacity and Demand Million 80000 70000 60000 50000 40000 30000 20000 10000 0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Revenue Passenger Kilometres Available Seat Kilometres Revenue Passenger Kilometres Available Seat Kilometres Passenger Load Factor Million Million % 1995/96 24,566 35,161 69.9 1996/97 27,904 40,097 69.6 1997/98 28,698 42,294 67.9 1998/99 30,593 45,442 67.3 1999/00 34,930 48,906 71.4 2000/01 38,313 51,238 74.8 2001/02 34,709 52,595 66.0 2002/03 37,653 54,266 69.4 2003/04 37,659 55,692 67.6 2004/05 44,226 64,115 69.0 Passenger Load Factor % 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 156 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) CORPORATE CHARTS Passenger Revenue for National and International Route (excluding charters) RM Million 80000 70000 60000 50000 40000 30000 20000 10000 0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 National Revenue International Revenue National Revenue International Revenue RM Million RM Million 1995/96 979 3,322 1996/97 1,070 3,712 1997/98 1,059 4,080 1998/99 895 4,434 1999/00 1,027 5,027 2001/02 1,263 5,125 2002/03 1,312 5,814 2003/04 1,272 6,098 2004/05 1,330 7,443 Malaysian Airline System Berhad Annual Report 04/05 157 (10601-W) CORPORATE CHARTS Passengers Carried for National and International Routes ‘000 10000 8000 6000 4000 2000 0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 National Passengers International Passengers National Passengers International Passengers ‘000 ‘000 1995/96 7,986 6,325 1996/97 8,648 6,732 1997/98 8,481 6,636 1998/99 7,454 6,255 1999/00 7,993 7,378 2000/01 8,854 7,891 2001/02 8,645 7,089 2002/03 8,677 7,648 2003/04 8,351 7,024 2004/05 8,840 8,696 Cargo Carried 1995/96 1,328 1996/97 1,420 1997/98 1,532 1998/99 1,477 1999/00 1,665 Million 2000/01 1,837 2001/02 1,759 2002/03 2,071 2003/04 2,187 2004/05 2,690 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96 158 Malaysian Airline System Berhad Annual Report 04/05 (10601-W) directors’ report Malaysian Airline System Berhad (10601-W) (Incorporated in Malaysia) The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 March 2005.