AirAsia earns revenues via seven business segments. Its main contributor is scheduled flights, comprising 55% of total sales. CEO Anthony Fernandez has served in his capacity since 2001, when he and several partners bought AirAsia from its former owners. AirAsia’s financial metrics have improved greatly in the last two years. Learn more at: http://becomeabetterinvestor.net/blog/flying-high-with-airasia/

1. Presented by: Dr. Andrew Stotz, CFA
AirAsia
Berhad

2. 216 October 2016
Background: AirAsia Berhad is a low-cost airline, providing long and
short haul, point-to-point domestic and international routes. It
primarily operates in the Asia Pacific region and currently serves
about 200 destinations across Asia, Australia, New Zealand and the
Middle East, among others.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: AirAsia Bhd.
Ticker: AIRA MK
Price (MYR): 2.78
Mcap: US$1,841m
3MADTO: US$11m
Beta: 1.8x
Sector: Industrials
Industry: Transportation
Major shareholders:
19% Tune Air Sdn Bhd
5% Skagen AS
78% Free float
AirAsia Berhad (AIRA MK)
 AIRA earns revenues via seven business segments. Its main contributor is Scheduled
flights, comprising 55% of total sales. These are forward bookings of clients for future travel.
Meanwhile, the charter flight segment, which are flights that are not part of AIRA’s regular
schedule, contributes 14% of total sales
 Ancillary revenue segment with 16% contribution to total sales includes assigned seat,
cancellation, documentation and other fees, and the onboard sale of meals and
merchandise
 Other business segments are Aircraft operating lease income, Freight and cargo, fuel
surcharge and management fees
 The group’s network has about 200 destinations spanning 24 countries. Its affiliate
airlines include AirAsia India, AirAsia Japan, AirAsia X, Indonesia AirAsia and Philippines
AirAsia
 AirAsia considers the sale of its leasing arm Asia Aviation Capital (AAC) with an equity
value of around US$1bn inclusive of debt
Revenue breakdown, by segment 2015 (Others 2%)
Ancillary revenue 16%Scheduled and charter flights 69% Aircraft operating lease 9% Freight and cargo 4%
-
50
100
150
-
1
2
3
4
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
AIRA MK (LHS)
Price relative to local index
(MYR) (%)

3. 316 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: AirAsia Berhad is a low-cost airline, providing
long and short haul, point-to-point domestic and
international routes.
It primarily operates in the Asia Pacific region and
currently serves about 200 destinations
across Asia, Australia, New Zealand and the Middle East,
among others.
AirAsia Berhad (AIRA MK)

4. 416 October 2016
-
50
100
150
-
1
2
3
4
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
AIRA MK (LHS)
Price relative to local index
(MYR) (%)
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: AirAsia Bhd.
Ticker: AIRA MK
Price (MYR): 2.78
Mcap: US$1,841m
3MADTO: US$11m
Beta: 1.8x
Sector: Industrials
Industry: Transportation
Major shareholders:
19% Tune Air Sdn Bhd
5% Skagen AS
78% Free float
AirAsia Berhad (AIRA MK)

5. 516 October 2016
Background: AirAsia Berhad is a low-cost airline, providing long and
short haul, point-to-point domestic and international routes. It
primarily operates in the Asia Pacific region and currently serves
about 200 destinations across Asia, Australia, New Zealand and the
Middle East, among others.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: AirAsia Bhd.
Ticker: AIRA MK
Price (MYR): 2.78
Mcap: US$1,841m
3MADTO: US$11m
Beta: 1.8x
Sector: Industrials
Industry: Transportation
Major shareholders:
19% Tune Air Sdn Bhd
5% Skagen AS
78% Free float
AirAsia Berhad (AIRA MK)
 AIRA earns revenues via seven business segments. Its main contributor is Scheduled
flights, comprising 55% of total sales. These are forward bookings of clients for future travel.
Meanwhile, the charter flight segment, which are flights that are not part of AIRA’s regular
schedule, contributes 14% of total sales
 Ancillary revenue segment with 16% contribution to total sales includes assigned seat,
cancellation, documentation and other fees, and the onboard sale of meals and
merchandise
 Other business segments are Aircraft operating lease income, Freight and cargo, fuel
surcharge and management fees
 The group’s network has about 200 destinations spanning 24 countries. Its affiliate
airlines include AirAsia India, AirAsia Japan, AirAsia X, Indonesia AirAsia and Philippines
AirAsia
 AirAsia is considering the sale of its leasing arm Asia Aviation Capital (AAC) with an equity
value of around US$1bn inclusive of debt
Revenue breakdown, by segment 2015 (Others 2%)
Ancillary revenue 16%Scheduled and charter flights 69% Aircraft operating lease 9% Freight and cargo 4%
-
50
100
150
-
1
2
3
4
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
AIRA MK (LHS)
Price relative to local index
(MYR) (%)

6. 616 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 AIRA earns revenues via seven business
segments
 Its main contributor is scheduled flights,
comprising 55% of total sales. These are forward
bookings of clients for future travel
 Meanwhile, the charter flight segment, which are
flights that are not part of AIRA’s regular
schedule, contributes 14% of total sales
AirAsia Berhad (AIRA MK)

7. 716 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Ancillary revenue segment with 16% contribution
includes assigned seat, cancellation,
documentation and other fees, and the onboard
sale of meals and merchandise
AirAsia Berhad (AIRA MK)

8. 816 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Other business segments are Aircraft operating
lease income, Freight and cargo, fuel surcharge
and management fees
AirAsia Berhad (AIRA MK)

9. 916 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 The group’s network has about 200 destinations
spanning 24 countries
 Its affiliate airlines include AirAsia India, AirAsia
Japan, AirAsia X, Indonesia AirAsia and
Philippines AirAsia
AirAsia Berhad (AIRA MK)

10. 1016 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 AirAsia is considering the sale of its leasing arm
Asia Aviation Capital (AAC) with an equity value
of around US$1bn inclusive of debt
AirAsia Berhad (AIRA MK)

11. 1116 October 2016
Background: AirAsia Berhad is a low-cost airline, providing long and
short haul, point-to-point domestic and international routes. It
primarily operates in the Asia Pacific region and currently serves
about 200 destinations across Asia, Australia, New Zealand and the
Middle East, among others.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: AirAsia Bhd.
Ticker: AIRA MK
Price (MYR): 2.78
Mcap: US$1,841m
3MADTO: US$11m
Beta: 1.8x
Sector: Industrials
Industry: Transportation
Major shareholders:
19% Tune Air Sdn Bhd
5% Skagen AS
78% Free float
AirAsia Berhad (AIRA MK)
 AIRA earns revenues via seven business segments. Its main contributor is Scheduled
flights, comprising 55% of total sales. These are forward bookings of clients for future travel.
Meanwhile, the charter flight segment, which are flights that are not part of AIRA’s regular
schedule, contributes 14% of total sales
 Ancillary revenue segment with 16% contribution to total sales includes assigned seat,
cancellation, documentation and other fees, and the onboard sale of meals and
merchandise
 Other business segments are Aircraft operating lease income, Freight and cargo, fuel
surcharge and management fees
 The group’s network has about 200 destinations spanning 24 countries. Its affiliate
airlines include AirAsia India, AirAsia Japan, AirAsia X, Indonesia AirAsia and Philippines
AirAsia
 AirAsia considers the sale of its leasing arm Asia Aviation Capital (AAC) with an equity
value of around US$1bn inclusive of debt
Revenue breakdown, by segment 2015 (Others 2%)
Ancillary revenue 16%Scheduled and charter flights 69% Aircraft operating lease 9% Freight and cargo 4%
-
50
100
150
-
1
2
3
4
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
AIRA MK (LHS)
Price relative to local index
(MYR) (%)

12. 1216 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 2015 (Others 2%)
Ancillary
revenue 16%
Scheduled and
charter flights 69%
Aircraft operating
lease 9%
Freight and
cargo 4%

14. 1416 October 2016
AIRA: Leadership
Sources: A. Stotz Investment Research, company data, FactSet
ChairmanCEO
2012 2013 2014 2015 Past 12 months
Kamarudin Bin Meranun
Nov 2013 – Present
Anthony “Tony” Fernandes
Dec 2001 – Present
Abdel Aziz
Jun 2008 – Nov 2013

15. 1516 October 2016
'12 '13 '14 '15 PTM
4 7 9 4 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 7 9 7 3 3 9 10 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
10 10 10 10 10 1 3 8 2 1 4 6 5 2 1 1 10 10 1 1
Benchmarked against 1,400 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
CEO, 2002 – Present
Tony Fernandes
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
improved to World Class
from #9 in 2014!
Ranks among the best
140 of 1,400 large
Industrials companies
AIRA: A. Stotz Profitable Growth

16. 1616 October 2016
'12 '13 '14 '15 PTM
4 7 9 4 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 7 9 7 3 3 9 10 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
10 10 10 10 10 1 3 8 2 1 4 6 5 2 1 1 10 10 1 1
Benchmarked against 1,400 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
improved to World Class
from #9 in 2014!
Ranks among the best
140 of 1,400 large
Industrials companies
Profitability has
improved to #3 from #7
and Growth is the best
AIRA: A. Stotz Profitable Growth
CEO, 2002 – Present
Tony Fernandes

17. 1716 October 2016
'12 '13 '14 '15 PTM
4 7 9 4 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 7 9 7 3 3 9 10 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
10 10 10 10 10 1 3 8 2 1 4 6 5 2 1 1 10 10 1 1
Benchmarked against 1,400 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
improved to World Class
from #9 in 2014!
Ranks among the best
140 of 1,400 large
Industrials companies
Profitability has
improved to #3 from #7
and Growth is the best
Profit margin is now #1
And so is the Sales
growth
AIRA: A. Stotz Profitable Growth
CEO, 2002 – Present
Tony Fernandes

18. 1816 October 2016
 Do YOU want to see the Profitable Growth rank
for a company in YOUR portfolio?
 Leave a comment below with company name
and country of listing…and I’ll post it if I have it