tiger airways holdings limited
2q fy12-13 and 1h fy12-13 results quarter ended 30 september 2012
30 october 2012 Results Snapshot
Revenue for the quarter grew 79%, driven by increased capacity, stronger yield, and higher load factor 2Q net loss narrowed to $18m on the back of higher revenue
SGD‘m 2Q13 2Q12 Y-o-Y chg 1H13 1H12 Y-o-Y chg
Revenue 197 110 79% 378 289 31%
Expenses 208 151 38% 401 342 17%
Operating Loss (11) (41) (72%) (23) (53) (56%)
Loss After Tax (18) (50) (63%) (32) (70) (55%)
Basic Loss Per Share (2.23) (8.64) (74%) (3.90) (12.21) (68%)
1 2Q13 Revenue
Traffic (in RPK) increased 47.2%, from 1,760m (2Q12) to 2,591m (2Q13), mostly due to more flights flown by TT Yields (in RPKM) increased 21.2%, from 6.14 cents to 7.44 cents, mainly due to higher yield from TR
2 2Q13 Expenses
Key operating statistics: ($’000)
RPK increased 47.2% to 2,591 million y-o-y 86,039 Fuel Costs 56,145 ASK increased 42.1% to 3,126 million y-o-y 28,621 CASK fell 3.1% to 6.66 cents y-o-y Staff costs 24,249
21,548 Airport & handling 13,325
Maintenance, 20,743 material & repair 19,673
19,608 Aircraft rental 13,092
8,880 Route charges 4,271
8,128 Depreciation 7,950
14,588 Others 12,410
0 20,000 40,000 60,000 80,000100,000
2Q13 2Q12 3 Operating Statistics
Number of passengers and traffic (RPK) trending upwards since Australia suspension in 2Q12
2,600
2,525 2,591 2,200 2,349 2,104 2,105 1,800 1,774 1,760 1,400 1,640 1,430 1,290 1,304 1,000 1,096
600
200 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Pax No. (thousand) Traffic, RPK (mil)
4 Operating Statistics
Passenger load factor trending over 80% in 1H13 Yield has come under pressure in the last 3 quarters due to intense competition in Australia domestic market. 1H13 yield improvement year-on-year
(%) (cents) 7.89 100 7.53 7.59 7.44 8.00 7.04 95 7.00 6.14 90 6.00 85 85.5 80 83.3 82.9 5.00 80.0 80.1 75 78.9 4.00
70 3.00 65 2.00 60 55 1.00 50 0.00 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Pax load factor (%) Yield, Revenue per RPK (cents) 5 Balance Sheet
As at 30 September 2012 SGD‘m 30-Sep-12 31-Mar-12 Total equity dropped to SGD216m, mainly due to Group Assets losses incurred for the first six Cash 107 161 months Property, Plant and Equipment 793 832 Total assets decreased slightly to Other Assets 106 79 SGD1,006m, mainly due to Total Assets 1,006 1,072 reduction in cash balances for Liabilities repayment of bank borrowings Total Debt 499 584 Total liabilities decreased to Other Liabilities 291 239 SGD790m, mainly due to lower Total Liabilities 790 823 bank loans Total Equity 216 249 Net Debt 392 423 Net Debt/Equity Ratio 1.8 1.7
6 Cash Flow Movement
Operating cashflow generated $31.9m, mostly from increase in forward sales and a higher payables net of receivables Financing cashflow was due mostly to repayment of bank loans
Proceeds from aircraft sale Increase in forward Repayment sales of bank loans Higher payables net of receivables
7 Operating Statistics
2Q13 2Q12 % Change 1H13 1H12 % Change
Passengers booked (thousands) 1,640 1,096 49.5 3,070 2,871 6.9 Revenue passenger-kilometres, RPK 2,591 1,760 47.2 4,941 4,285 15.3 (mil) Available seat-kilometres, ASK (mil) 3,126 2,199 42.1 5,947 5,153 15.4 Passenger load factor, RPK/ASK (%) 82.9 80.0 2.9 pts 83.1 83.2 (0.1) pt Average passenger fares ($) 93.0 80.3 15.9 97.2 80.1 21.4 Average ancillary revenues per 22.8 17.9 27.4 22.6 19.1 18.3 passenger ($) Revenue per RPK (cents) 7.44 6.14 21.2 7.51 6.67 12.6 Cost per ASK, CASK (cents) 6.66 6.87 (3.1) 6.75 6.64 1.7 CASK excluding fuel and forex 3.79 4.00 (5.2) 3.86 3.74 3.2 (cents) Breakeven load factor (%) 89.5 112.0 (22.5) pts 89.8 99.5 (9.7) pts Aircraft utilisation (block hours per 10.5 7.9 32.2 9.9 9.6 3.6 aircraft per day) Average sector length flown (km) 1,557.3 1,598.3 (2.6) 1,580.9 1,496.1 5.7
8 Tiger Singapore
% % Period ($m) 2Q13 Change 1H13 Change 2Q13 Total Revenue 133 32.9% 271 28.3 Continued turnaround Total Expenditure 128 14.4% 262 21.6% with operating profit of Operating Profit 5 n.m. 9 n.m. $5m compared to a loss of $12m y-o-y Pax booked (thousands) 1,017 2.3 2,052 3.7 Healthy load factors as Revenue pax-km, RPK (mil) 1,847 11.8 3,685 12.4 capacity is better matched Available seat-km, ASK (mil) 2,249 10.1 4,408 12.1 with demand. Passenger load factor improved from Passenger load factor (%) 82.1 1.2 pt 83.6 0.2 pt 80.9% to 82.1%
Developments & Outlook Successfully flew 100% of all scheduled flights in 1H13 Moved from Budget Terminal to new den at Changi Airport Terminal 2 in Sep-12 New services to Hyderabad from Sep-12 and Phnom Penh from Oct-12 Tiger Singapore-Scoot collaboration commenced from Oct-12 Continue to grow capacity at a measured pace 2H13 ASK forecasted to grow 17% y-o-y 9 Tiger Australia
% % Period ($m) 2Q13 Change 1H13 Change 2Q13 Total Revenue 62 n.m. 104 38.5 Tiger Australia narrowed Total Expenditure 82 n.m. 145 15.5% operating losses from Operating Profit (20) (26.5%) (41) (18.6) $27m (2Q12) to $20m (2Q13) Pax booked (thousands) 622 n.m. 1,017 14.1 Tiger Australia operated at Revenue pax-km, RPK (mil) 744 n.m. 1,256 24.6 significantly reduced Available seat-km, ASK (mil) 877 n.m. 1,538 25.9 capacity and on a limited schedule last year Passenger load factor (%) 84.8 15.9 pt 81.6 (0.8) pt
Developments & Outlook Commenced services from second base in Sydney (Jul-12) Took delivery of 11 th aircraft in Aug-12 New routes in 2H13 : Melbourne-Adelaide (Nov-12), Melbourne-Hobart (Nov-12), Melbourne-Mackay (Dec-12), Sydney-Mackay (Dec-12) Competition between the larger airlines in the Australian domestic market is expected to continue to keep yields under pressure in the near term
Services back to pre-suspension level by Oct-12 10 Growth in SE Asia
New JVs in start-up phase, expanding their presence in the region
PT Mandala Airlines: South East Asian Airlines: Equity-accounted the share of loss up to cost of Completed acquisition of 40% stake in SEAir in investment of US$1. The Group’s share of Aug 2012 cumulative unrecognised losses was $9.2m as at Accounted $3.8m in share of loss in associate in 30 September 2012 2Q13 Mandala has a fleet of 4 aircraft; to increase to 7 SEAir has a fleet of 2 A319s and 3 A320s aircraft by end of FY13 Network expanded to include 4 international Currently serving 4 routes (Jakarta-Medan, routes and 1 domestic route out of Clark, 7 Jakarta-KL, Medan-Singapore and Bangkok- domestic routes out of Manila Jakarta) New services between Jakarta-Padang, Padang- Singapore, Denpasar-Singapore and Denpasar- Surabaya from Dec-12 11 2Q13 Developments: New Den @ T2
New Tiger flies from Singapore’s Terminal 2 from 25 Sep 2012 Successful fun-filled and glitch-free transfer from Budget Terminal to Terminal 2 Opportunities to provide enhanced customer experience from new terminal
12 2Q13 Developments: Combo flights
FlightCombo TM : purchase more than one flight in a single reservation Opens up Tiger network for multiple combo flights Expands Tiger products with minimal costs Tiger Singapore and Scoot signed agreement on wide-ranging partnership to offer joint itineraries Single booking will allow travel on joint itineraries between destinations served by Tiger and Scoot Initial destinations include Phuket, Ho Chi FlightCombo TM : Minh City and Kuala Lumpur (served by Tiger); Sydney and Gold Coast (served by Scoot) 13 new destinations: Bangalore, Kochi, Hyderabad, Chennai, Thiruvananthapuram, Thiruchirapalli, Phnom Penh, Hanoi, Dhaka, Penang, Colombo, Kuching, Jakarta
13 2Q13 Developments: New Services
Web check-in for Singapore passport holders from Sep-12 tigerAPP: Mobile app on Android, iPhone and iPad from Oct-12 tigerPLUS: an add-on premium service (S$48 charge) that provides greater convenience and comfort (eg. Dedicated check-in, SATS’ premier lounge access and priority boarding service) from Oct-12 Pre-order meals before flight
14 2Q13 Developments: New Destinations
Singapore-Hyderabad and Phnom Penh flights launched in Sep 2012 and Oct 2012 respectively Australia: Sydney-Gold Coast, and Sydney-Brisbane routes launched in Jul and Aug 2012 respectively Melbourne-Adelaide, and Melbourne-Hobart routes to commence in Nov 2012 New Melbourne-Mackay, and Sydney-Mackay routes to commence mid-Dec Mandala: Jakarta-Kuala Lumpur and Jakarta-Bangkok flights launched in Aug 2012 Singapore-Bali and Padang to commence in Dec 2012 SEAir: Manila-Cebu commenced Jul 2012 Flights from Manila to Davao, Tacloban, Iloilo, Puerto Princesa, Boracay and Bacolod commenced Aug 2012
15 2Q13 Developments: Moving Forward!
Achieved Best On-Time Performance for 3 months (July- Sept 2012) in Singapore. Best performance for budget airline Awarded Threat-Oriented Passenger Screening Integrated System (TOPSIS) – only budget airline to receive this Delivered a 99.99% reliability performance in 2012 Strengthened management team with hiring of top aviation executives Started community engagement program to occupy position as neighborhood airline
16 tiger airways holdings limited joint venture with virgin australia Joint Venture with Virgin Australia
Virgin Australia acquires 60% of Tiger Airways Australia
A$ 5m deferred 20-year Brand & A$ 35m upfront fee payment, subject to License Agreement performance targets
Stronger Tiger Airways Australia Synergies in network planning, operational management, and procurement Low-cost and internet-based distribution Use of Tiger brand and www.tigerairways.com Opportunities to grow
australia 18 Leveraging synergies for growth
Tiger Australia fleet to more than triple to 35 aircraft in five years
11 35
Stronger financial support from two shareholders – commitment of A$ 62.5m in the first five years Opportunities to expand bases and destinations Opportunities to expand to regional destinations Opportunities to deploy more low-cost capacity
19 Tiger Airways Australia Board
60% 40%
6 Board Directors 3 Virgin Board of 2 Tiger Directors 1 Independent 2-year rotating Chairmanship
australia
20 Financial Impact
Pro forma, based on Group’s financial position as at 30 September 2012
Pre- Post- ($m) transaction transaction
Gain on disposal (one-time) - 120
Total equity 216 344
Net Tangible Asset per Share (cents) 26.2 41.8
21 tiger airways holdings limited summary Summary
Continued focus on returning to profitability Tiger Singapore will continue to grow capacity at a measured pace through flight frequency increases and this will in turn improve aircraft utilisation Following the proposed joint venture with Virgin Australia, the Group expects Tiger Australia to be stronger and more competitive, upon having two strong shareholders. The joint venture will result in a stronger fleet, increased destinations, and more attractive budget offerings to customers. The completion of the share sale is subject to certain conditions precedent, including appropriate regulatory approvals in Australia, by the Australian Competition and Consumer Commission and Foreign Investment Review Board. The Company is seeking confirmation from SGX regarding the need for shareholders' approval for this transaction. The Group remains optimistic about the long-term growth potential of Indonesia’s and Philippines’ air travel market, and will continue to seek ways to derive greater synergies from these existing partnerships
23 thank you
Disclaimer These materials have been prepared by Tiger Airways Holdings Limited (the “Company”) and the information herein has not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information herein. None of the Company nor any of its affiliates or representatives accepts any liability whatsoever for any loss howsoever arising from any information herein. The information herein is subject to change without notice. These materials contain statements that reflect the Company’s current beliefs and expectations about the future. These forward- looking statements are based on a number of assumptions and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from such statements. The Company undertakes no obligations to update such statements for subsequent circumstances. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as Relevant Persons). This presentation is only directed at Relevant Persons and any investment or investment activity to which the presentation relates is only available to Relevant Persons or will be engaged in only with Relevant Persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a Relevant Person. Other persons should not rely or act upon this presentation or any of its contents. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations. These material are highly confidential, are being given solely for your information and no part of theses materials should be copied, reproduced or redistributed to any other person in any manner or published, in whole or in part, for any purpose. By accepting this presentation, you are deemed to accept the foregoing terms and conditions and agree to keep the contents of this presentation and these materials confidential.