Invest Malaysia 2013

Malaysia Airports Holdings Berhad
CORPORATE PRESENTATION
1
Table of Contents
 MAHB – A Leap Forward
 Airport Revenue Transformation
 klia2 – The Game Changer
 klia2 – Destination Curious
 Integrated Complex
 KLIA Aeropolis
 2013 Outlook
 Updates on klia2
2
MAHB – A LEAP FORWARD
Strong Financial Performance
+1.97x
+3.08x
>+100x
+4.16x
4
KLIA Outperforms Key Hubs
in Southeast Asia
KLIA’s high growth vs key regional hubs (2006-2012 pax CAGR)
5
AIRPORT REVENUE
TRANSFORMATION
Airport Revenue Transformation
7
Airport Revenue Transformation
Retail Optimisation At KLIA
The beginning
Contact Pier
1998
Commercial
Space (sqm)
Revenue
(RM mil)
Satellite
2008
Main Terminal Main Terminal
1A
1B
2009
2010
2011
16,000
3% of GFA
18,200
3.5% of GFA
21,400
4.2% of GFA
21,500
4.22 % of GFA
23,300
4.63 % of
GFA
98.8
Additional
17.3
Additional
45.0
Additional
2.5
Additional
7.0
8
Airport Commercial Space
Retail Optimisation Plan
KLIA
KLIA
(before ROP)
(after ROP)
Gross Floor
Area (GFA)
(sqm)
479,400
Commercial
Space (sqm)
% of GFA
LCCT
klia2
479,400
64,000
257,000
16,000
23,300
6,500
35,200
3%
5%
10%
14%
 Moving forward, klia2 will be the game changer for MAHB’s commercial strategies
 klia2 boasts larger commercial space: > 5x LCCT and 50% bigger than KLIA
9
klia2 – THE GAME CHANGER
klia2 – World’s Largest Dedicated
Low-cost Carriers Terminal
11
The Rise of Low-cost Carriers
Maturing economies, rising income &
integration of Asian urban economies
Evolution from hubs to pointto-point markets
Liberalised
market access
Relaxing trade
barriers & air
services regulation
Competitive
Advantage
Economic &
demographic
developments
Innovation of airlines - add
new city pair, introduce
long-haul low cost services
Strategic
geographical
location
Adequate
infrastructure to
support
proliferation of
new entry
Over a quarter of the
world’s population lives
within a four-hour flight
radius of KLIA
12
KLIA – The Next Generation Hub
Seamless connectivity
and transfer for
passengers travelling
in both full-service
airlines and low-cost
carriers
Collaborating with
Government, airlines
partners & airport
counterparts:
- gain new airlines
- establish new routes
Geographical
centrality:
Four key
enablers for
Next
Generation
Hubs strategies
- increase frequency
- flexibility to combine
short-haul & long-haul
connections
- adequate catchment
areas within 4-5 hours
of flight
Developing strong
branding for KLIA &
continuously enhance
operational &
development capacity
13
klia2 Features
KLIA (MTB)
klia2
Existing LCCT
14
klia2 – DESTINATION CURIOUS
KLIA – Top 5 Products
Top 5 categories of products made up ~90% of total spend for each nationality
To focus on core duty free business
Top 5 Categories by Nationality
July 2010; % of Total Sales
DF - Perfume & Cosmetic
DF - High Fashion (Men)
DF - Confectionery
DF - Cigarette
DF - Liquor
49%
145
9%
6%
5%
4%
217
140
146
131
Source : Booz & Company Analysis
Contribution to Sales (%)
Average Spend Per
Transaction ‘RM
16
The LCCT Journey
The
Beginning


The
Expansion
klia2
Gross Floor
Area
31,621sqm
64,067sqm
257,845sqm
Commercial
Space
1,353sqm
6,500sqm
35,200sqm
Sales/Pax
RM 14
RM 22
RM 40
No. of
Outlets
15
61
225
MAHB see remarkable growth on sales/pax each time commercial space at LCCT being expanded.
MAHB foresee average sales/pax to rise to RM40 or 80% increase at klia2.
17
Brands and Ambiance
Cocoa King
Malaysian Delight
Heng Heng
Local Delights
18
INTEGRATED COMPLEX
Overview of Integrated Complex
Satellite Building
Main Terminal Building
Integrated Complex
Integrated complex catering for the untapped non-passenger market
*Artist Impression
20
Gateway @ klia2
Specialty and F&B concepts
Unique F&B, alfresco dining,
traveler essentials, local
products,
authentic delicacies
Services offerings
Spa, lounges,
virtual golf,
karaoke, health &
beauty,
children zone etc.
Integrated Shopping
Mix retail and F&B i.e.
Factory Outlet Store,
Convenience, IT, Telco
etc.
Transportation Hub
Taxi, ERL, buses &
basic retail and F&B
21
Gateway@klia2 Positioned to
serve Airport Community
Tabung Haji
pilgrimage
terminal within
5km radius from
KLIA
Airport
workforce (direct
and indirect)
(2011: 45,000
people)
Existing and new
residents around
the airport
Huge terminal
linked activies
Passenger and
meeters-greeters
(2012: KLIA
passenger 39.9
million)
Transportation
hubs for taxi, ERL
and buses
Airport creates
significant
employment,
shopping, trading
and new business
destinations
22
KLIA AEROPOLIS
KLIA Aeropolis
Kuala Lumpur
Total KLIA Land
• 22,156 acres
Putrajaya
Developed
Land
• 6,000 acres
Remaining
Undeveloped
Land
• 16,156 acres
Cyberjaya
Putrajaya
Nilai
Approved
Landside
Development
• 6,750 acres
Land Tenure
• 25 years
from
February
2009
• Commercial
land – up to
60 years
Enstek
20 km
5 km
KLIA
Seremban
Sepang
Goldcoast
24
KLIA Aeropolis
Master Plan
KLIA Aeropolis
Satellite View
From Plus
Highway
Mitsui Outlet Park
To KLIA
Terminal
Project Details
Overview
70-30 Joint Venture between
Mitsui Fudosan & MAHB
60-40 composition of
European/US vs Asian brands
Investment of
RM335 mil
2,577 jobs
created by
2020
GNI in 2020:
RM220 mil
2013 OUTLOOK
28
2013 OUTLOOK
Global Aviation Outlook
2013 Passenger Traffic growth forecasts
IATA
4.5%
ACI
4.9%
ICAO
6%
29
2013 OUTLOOK
Malaysia Airports
Growth estimates for
2013
• Passenger Traffic: 7.1%
• National GDP : 5-6% (Bank Negara Malaysia)
Entry of new airlines
and expansion of
local carriers
• MAS: oneworld alliance, A380 operations
• Air France, Turkish Airline, Airphil Express,
Malindo Airline
• ASEAN liberalisation - less restrictive
operating environment for airlines
Visit Malaysia Year
2014
• The campaign would encourage travel
demand expansion
30
2013 Headline KPIs
Key Performance Indicators (KPIs)
Profitability
(EBITDA)
Return on Equity
(ROE)
Airport Service Quality
2013 Target
RM751.0 mil
-
KLIA Ranking Top 5 Worldwide in
the 25-40 mil passenger size
category
31
UPDATES ON klia2
32
klia2
Updates
No Delay
• The only delay is the 28 June
2013 dateline
Construction
• Still RM 4 billion
cost
33
klia2
34
klia2
Superior Facilities
35
klia2
Increased Footprint
36
klia2
Major Upgrades in Specifications
37
klia2
Project Costs
38
klia2
Lowest Construction Cost Per Pax
Construction Cost per Pax
RM2,906
RM1,938
RM2,143
Average = RM1,229
RM89
RM333
RM478
klia2 (45mppa) Suvarnabhumi Willy Brandt
A'port (45mppa) Int'l A'port
(45mppa)
RM717
Heathrow
Terminal 5
(30mppa)
Hamad Int'l Hong Kong Int'l
A'port (24mppa)
A'port
(35mppa)
Changi
Terminal 4
(16mppa)
Construction Period (years)
6.50 Ongoing
4.75
5.75
6.50
6.00
2.75 Ongoing
klia2
Suvarnabhumi
A'port
Willy Brandt
Int'l A'port
Heathrow
Terminal 5
Hamad Int'l
A'port
Hong Kong Int'l
A'port
39
klia2
FY2013 Revised Financial Impact
EBITDA (RM mil)
• Revenue
• Cost
• Net EBITDA
220
(230)
10
PBT (RM mil)
• Depreciation
• Finance cost
• PBT
140
100
240
Cash flow (RM mil)
• Improve
≈ 500
40
All figures are in RM million unless otherwise stated
klia2
2014 is A Good Year
Hike in Passenger
Service Charge
Hike in Landing &
Parking Fee
• RM 100 million
• RM 30 million
Revenue
Contribution
• At least RM
130 million
41
MALAYSIA AIRPORTS HOLDINGS BERHAD
PEJABAT KORPORAT
PERSIARAN KORPORAT KLIA
64000 KLIA
SEPANG, SELANGOR
TEL: 603-87777000
FAX: 603-87777778