MAHB Analyst
MALAYSIA AIRPORTS HOLDINGS BERHAD FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 31st DECEMBER 2010 ANALYST BRIEFING 1 16 February 2010
TABLE OF CONTENTS FY2010 Review Group Financial Review Airport Operations Review Commercial Revenue Analysis Traffic Statistics Peer Comparison KLIA2 Commercial Planning Appendix 2
2010 SIGNIFICANT EVENTS
Share price grew 58.2% in 2010. Shareholder wealth more than doubled since IPO in 1999
* All share price are month-end closing price
4
2010 HEADLINE KPI
MAHB have surpassed headline KPI for 2010 5
FY2010 REVIEW Global Aviation Industry
1
IATA: Industry rebounded after a tough 2009 with total passenger traffic up 8.2% (Average passenger load factor was 78.4% (+2.7% from 2009) ICAO: International traffic grew by 8.8%, led by a strong rebound in business and leisure long-haul travel, particularly in emerging markets where outgoing tourism flourished Largest percentage growth in Middle East (21%), followed by AsiaPac (12.9%), Latin America (11.4%), Africa (10%), North America (6.2%) and Europe (6.7%)
MAHB Achieved record turnover for the eighth consecutive year and have been able to consistently deliver commendable operating results. Continues to be amongst the best airports in terms of pax movement, with remarkable international pax movement at 21.3% Aero-revenue continue to benefit from increased passenger and aircraft movements. Non-aeronautical revenue underpinned by growth in retail business and higher rental revenue derived from additional commercial space. 1. Source: ICAO: Robust Recovery In 2010 Amid Changing Industry Trends, 23/12/2010 IATA: Strong 2010 but Uncertainties in 2011 - Severe Weather Dents Recovery, 2/2/11
6
YTD PAX MOVEMENT +75.8%
+17.8% +17.2% +15.1%
+13.0%
+13.0%
+13.0% +12.6%
+10.6%
+5.6%
-0.2%
(‘million pax)
+14.8%
KLIA amongst the best performing airports in the region with remarkable international pax growth at 21.3%
* Source : ACI Preliminary Numbers
7
FY10 RESULTS Financial Position Mainly driven by growth in airport operations segment driven by recovery in air travel demand
Stronger EBITDA in line with strong revenue and passenger growth
Discontinued Ops (SIC)
Key Ratios
Raised 2 tranches Sukuk totalling RM2.5bil
Revenue grew 10.7% on the back of higher pax growth of 12.7% Lower PBT due to FRS139 where the concession payable by SGIA was recognized at fair value and subsequently at amortized costs Stripping out the effects of FRS 139, FY2010 PBT was 4.1% higher than FY2009.
9
GROUP SEGMENTAL REVENUE Airport Operations (RM ‘mil) FY2010 : RM1,675.2 (+11.9%) FY2009 : RM1,496.6
Non Airport Operations (RM ‘mil) FY2010 : RM137.6 (-2.1%) FY2009 : RM140.5
RM’mil
Airport Operations
Non-Airport Operations
Airport Operations segment grew 11.9% to RM1,675.2mil due to strong pax movements Non-Airport Operations segment decline 2.1%:-
1) Hotel segment grew 9.4% due to higher room rate, occupancy and F&B income 2) Project and maintenance segment declined 18.8% due to lower number of projects secured in FY2010 3) Agriculture segment declined 3.7% due to lower total crop harvested contributed by the clearing of a portion of the plantation land to make way for the construction of the new terminal. (FY2010: 83,370MT / RM543 vs. FY2009: 111,700MT / RM412)
10
GROUP SEGMENTAL PBT Airport Operations (RM ‘mil) FY2010 : RM643.3(+11.5%) FY2009 : RM576.8
Non Airport Operations (RM ‘mil) FY2010 : (RM198.4) (-105.0%) FY2009 : (RM96.8)
RM’mil
Airport Operations
Non-Airport Operations
Airport Services PBT grew 9.7% while retail PBT grew 17.5% in FY2010. Others include holding company expenses and share of associate loss
11
GROUP COST ANALYSIS RM’mil
FY2010 : RM1,203.8 mil (+11.6%)
FY2009 : RM1,078.5 mil
Increase in Operating Cost was in line with revenue growth mainly due to higher staff costs & utilities costs
The increase in Professional Fees is mainly due to the service on billing and collection of PSC and PSSC payable to IATA amounting to RM2.6mil.
12
BALANCE SHEET ANALYSIS Capitalization of
KLIA2 construction costs and transfer of SIC Circuit (~RM320mil) from PPE to Other Receivables
RM’mil
Raised two tranches
Sukuk totalling RM2.5bil
Cash from
RM2.5bil Sukuk issuance
FRS impact
from Sabiha Gokcen
Strong balance sheet 13
FY2010 - AIRPORT OPERATIONS Financial Position
Key Ratios
Growth driven by strong pax number. 15
REVENUE ANALYSIS - AIRPORT OPERATIONS Aeronautical(RM ‘mil) FY2010 : RM868.7(+9.9%) FY2009 : RM790.5
Non Aeronautical(RM ‘mil) FY2010 : RM806.5(+14.2%) FY2009 : RM706.1
RM’mil
High growth in PSC due to 21.3% international pax growth (5.6% domestic pax growth) Retail business growth outpaced overall pax growth Higher rental revenue as a result of an increase in commercial space due to LCCT expansion and SROP
16
OPERATING COSTS - AIRPORT OPERATIONS
FY2010: RM958.1 mil (+12.2%)
RM’mil
Operating Costs 6m 2010: RM471,772 FY2009: RM854.2 mil (+11.37%)
Increase in Operating Costs mainly due to higher staff costs & utilities costs 17
REVENUE & COSTS ANALYSIS - AIRPORT OPERATIONS
18
KLIA – TOTAL SALES
Sales per passenger for KLIA (inc. LCCT) increased 1.3% in FY2010 to RM29.64 per person, with LCCT registering higher sales per pax growth of 7.3% at RM21.68 In terms of dollar value, sales per pax value in KLIA (exc. LCCT) dominates LCCT by approximately 66.8% at RM36.16 per pax (vs FY2009 sales per pax of RM36.39 at MTB) Total proportion of sales in LCCT has risen from 32.9% in FY2009 to 30.5% in FY2010 in line with the LCCT expansion completed in April 2009 20
KLIA – ERAMAN RETAIL REVENUE
MAHB’s own retail arm, Eraman’s business grew due to higher retail and F&B income as a result of increase in passenger volume Retail revenue per pax in KLIA (inc. LCCT) grew 4.7% in FY2010 to RM10.46 per pax (FY2009 RM9.99 per pax) 21
KLIA – RENTAL ANALYSIS
Rental revenue in KLIA increased 18.9% in FY2010 compared to FY2009, which are in tandem with the increase in space: LCCT expansion completed in Apr-09 Retail Optimisation Plan at KLIA (ex. LCCT) completed in Nov-09
22
PAX MOVEMENT (‘mil pax)
Total passenger volume for FY2010 was 57.8 million, which was 12.7% higher than FY2009. International and domestic passenger movements grew by 21.3% and 5.6% respectively
24
AIRCRAFT MOVEMENT (‘000)
Total aircraft movements in FY2010 was 578,086 (+7.9% from FY2009) International sector recording a higher growth of 11.6% compared to the domestic sector which registered 5.9% growth.
25
CARGO MOVEMENT (‘mil metric tonnes)
Cargo movements increased as a result of economic recovery 26
SHARE PRICE VS FBMKLCI Percentage (%)
Consistently outperform the benchmark FBM KLCI
Performance End date: 31/01/11 closing price
28
LTM SHARE PRICE vs AIRPORTS PEER (1)
MAHB share price amongst the best performers in the last twelve months, and have outperformed all composite buckets since 2007 with cumulative returns of 211.2%.
LTM = Last twelve month; Data as at 26/11/10; (1) The composite bucket include companies of the corresponding regions on the left hand side. Source : Nomura
29
PEER FINANCIAL BENCHMARKING
MAHB has comparable strong financial profile amongst peer.
(1)
Average excludes Sydney Airport, see footnote 3; (2) Multiple Airports; (3) Sydney Airport was acquired by the Southern Cross Airports Corporation Consortium in 2002 as a leveraged buyout, which issued senior secured debt that is consolidated in the credit rating. Source : Nomura
30
COMPARISON - MTB, LCCT & KLIA2
KLIA2 will be a game changer – an opportunity to apply different policies to get the desired commercial results Source : Booz & Company Analysis
32
AIRPORT COMMERCIAL SPACE Commercial v.s Non-Commercial Space Benchmark In ‘000 Sqm
240
480
1
64
710
1,018
2
499
561
4
Total GFA5
3
Relatively high portion of airport space proposed to be allocated to commercial in KLIA2 LCCT Largely biased towards F&B offerings while KLIA towards retail F&B does well at the LCCT due to the low-cost carrier profile (no free meals on board) as well as larger local population Source: Booz & Company Analysis 1) Proposed allocation as of July 2010, 240,000Sq.m GFA, 30 millions passengers, excluding Landside mall, 2) Excluding Budget Terminal, 3) Excluding concourse and transportation centre, 4) Minimum estimation from King Power data, 5) Gross Floor Area (‘000 Sq.m)
33
KLIA - TOP 5 PRODUCTS Top 5 Categories by Nationality July 2010; % of Total Sales DF - Perfume & Cosmetic DF - High Fashion (Men) DF - Confectionery
DF - Cigarette
DF - Liquor
49%
9%
6%
5%
4%
Contribution to Sales (%)
145
217
140
146
131
Average Spend Per Transaction ‘RM
Top 5 categories of products made up ~90% of total spend for each nationality To focus on core duty free business Source : Booz & Company Analysis
34
KLIA2 PRODUCT MIX EVALUATION PROCESS
Manage partner performance Enforcement and review Exit planning
Maximise partner participation Increase awareness of objectives Advertising and promotions
Higher level understanding
Segment targeting Segment needs
Future category Determine space allocation Determine value for money Determine brand mix
Developing and implementing the category mix starts with knowing the target customer
35
AGE DEMOGRAPHIC – MTB & LCCT Demographic Profile of MTB Passengers1
Demographic Profile of LCCT Passengers 1
% of Passengers in Each Age Group
% of Passengers in Each Age Group
~75% of passengers are 16-44 years old
~69% of passengers are 16-44 years old
Age
Age
Gender
Gender Male
Female
Male
Female
Passengers at the LCCT are slightly younger Source : Booz & Company Analysis 1)
ASQ Survey 2009 0(Note: Sample size 3,253 (2007); 3,279 (2008); 3,311 (2009))
36
TRAVELLING PURPOSES Demographic Profile of LCCT Passengers
Main Purpose of Travelling
% of Passengers in Each Age Group
2010; % of Passengers Others
~67-70% of passengers travel 1-5 trips per year
Visiting friends or relatives Studies Business
Leisure
MTB
MTB serves more business/ student travellers comparing to LCCT
Trips per year
MTB
LCCT
Passengers at the LCCT mostly travel for leisure and mostly travel more than 1.5 trips per year Source : Booz & Company Analysis 1) Customer Survey Data as of August 2010 Note: Sample size 550
37
KLIA2 – MID RANGE OFFERINGS Average spend by category ‘RM
KLIA MTB LCCT
LCCT have a lower purchasing power than passenger at KLIA – mid-range brands appropriate at KLIA2 Brand positioning at KLIA2 will need be in the middle-upper range Lifestyle related services at KLIA2 – 80% of passengers indicate that they rest after check-in – relaxation, lounges facilities and services are important offerings to have Demand for F&B at the LCCT is growing rapidly – To have sufficient range and quality at KLIA2 Many passengers eat before or after they take an LCC Flight Fast food & quick bites category perform the best
Source : Booz & Company Analysis, figures based on year 2009
38
FRS 139 EFFECTS – FY10 Background
FRS 139 requires all financial assets and liabilities to be measured at fair value. The fair value of noncurrent assets and liabilities in MAHB’s Group accounts except for unquoted investment, is the present value of estimated future cash flows, discounted at the original effective interest rate (“Amortised costs method”).
Note a: Changes in carrying amount of non-current trade debtors, measured using amortised cost method. The non-current debtors represent amount outstanding from (a) KL Airport Services Sdn Bhd (KLAS) and (a1) Government for option to purchase SIC Circuit, both due after 12 months from the reporting date. Note b: Changes in carrying amount of non-current liability, measured using amortised cost method. The non-current liability represents Residual Balance (balance of amount due to the government which is to be offset against future revenue shares) which is expected to be realised after 12 months from the reporting date. Note c: Reversal of amortisation of concession rights resulting from the restatement of the concession rights amount at fair value. Note d: Share of Associate Profit – Sabiha Gokcen International Airport with FRS 139 adjustments. The adjustments are mainly changes in carrying amount of liability due to Turkey’s Government for concession right received to operate the airport. The liability is stated at the present value of future payments until January 2030. 40
SGIA P&L
MAHB’s Share
41
TOURISM STATISTICS Tourist Arrivals YTD-Nov
Tourist arrival – 14.2% CAGR (11-year)1 Tourist arrival registered 4.4% growth (YTD-Nov)
(1) Year 2009 figures as at Nov-10
42
x
MALAYSIA AIRPORTS HOLDINGS BERHAD PEJABAT KORPORAT PERSIARAN KORPORAT KLIA 64000 KLIA SEPANG, SELANGOR TEL: 603-87777000 FAX: 603-87777778
TABLE OF CONTENTS FY2010 Review Group Financial Review Airport Operations Review Commercial Revenue Analysis Traffic Statistics Peer Comparison KLIA2 Commercial Planning Appendix 2
2010 SIGNIFICANT EVENTS
Share price grew 58.2% in 2010. Shareholder wealth more than doubled since IPO in 1999
* All share price are month-end closing price
4
2010 HEADLINE KPI
MAHB have surpassed headline KPI for 2010 5
FY2010 REVIEW Global Aviation Industry
1
IATA: Industry rebounded after a tough 2009 with total passenger traffic up 8.2% (Average passenger load factor was 78.4% (+2.7% from 2009) ICAO: International traffic grew by 8.8%, led by a strong rebound in business and leisure long-haul travel, particularly in emerging markets where outgoing tourism flourished Largest percentage growth in Middle East (21%), followed by AsiaPac (12.9%), Latin America (11.4%), Africa (10%), North America (6.2%) and Europe (6.7%)
MAHB Achieved record turnover for the eighth consecutive year and have been able to consistently deliver commendable operating results. Continues to be amongst the best airports in terms of pax movement, with remarkable international pax movement at 21.3% Aero-revenue continue to benefit from increased passenger and aircraft movements. Non-aeronautical revenue underpinned by growth in retail business and higher rental revenue derived from additional commercial space. 1. Source: ICAO: Robust Recovery In 2010 Amid Changing Industry Trends, 23/12/2010 IATA: Strong 2010 but Uncertainties in 2011 - Severe Weather Dents Recovery, 2/2/11
6
YTD PAX MOVEMENT +75.8%
+17.8% +17.2% +15.1%
+13.0%
+13.0%
+13.0% +12.6%
+10.6%
+5.6%
-0.2%
(‘million pax)
+14.8%
KLIA amongst the best performing airports in the region with remarkable international pax growth at 21.3%
* Source : ACI Preliminary Numbers
7
FY10 RESULTS Financial Position Mainly driven by growth in airport operations segment driven by recovery in air travel demand
Stronger EBITDA in line with strong revenue and passenger growth
Discontinued Ops (SIC)
Key Ratios
Raised 2 tranches Sukuk totalling RM2.5bil
Revenue grew 10.7% on the back of higher pax growth of 12.7% Lower PBT due to FRS139 where the concession payable by SGIA was recognized at fair value and subsequently at amortized costs Stripping out the effects of FRS 139, FY2010 PBT was 4.1% higher than FY2009.
9
GROUP SEGMENTAL REVENUE Airport Operations (RM ‘mil) FY2010 : RM1,675.2 (+11.9%) FY2009 : RM1,496.6
Non Airport Operations (RM ‘mil) FY2010 : RM137.6 (-2.1%) FY2009 : RM140.5
RM’mil
Airport Operations
Non-Airport Operations
Airport Operations segment grew 11.9% to RM1,675.2mil due to strong pax movements Non-Airport Operations segment decline 2.1%:-
1) Hotel segment grew 9.4% due to higher room rate, occupancy and F&B income 2) Project and maintenance segment declined 18.8% due to lower number of projects secured in FY2010 3) Agriculture segment declined 3.7% due to lower total crop harvested contributed by the clearing of a portion of the plantation land to make way for the construction of the new terminal. (FY2010: 83,370MT / RM543 vs. FY2009: 111,700MT / RM412)
10
GROUP SEGMENTAL PBT Airport Operations (RM ‘mil) FY2010 : RM643.3(+11.5%) FY2009 : RM576.8
Non Airport Operations (RM ‘mil) FY2010 : (RM198.4) (-105.0%) FY2009 : (RM96.8)
RM’mil
Airport Operations
Non-Airport Operations
Airport Services PBT grew 9.7% while retail PBT grew 17.5% in FY2010. Others include holding company expenses and share of associate loss
11
GROUP COST ANALYSIS RM’mil
FY2010 : RM1,203.8 mil (+11.6%)
FY2009 : RM1,078.5 mil
Increase in Operating Cost was in line with revenue growth mainly due to higher staff costs & utilities costs
The increase in Professional Fees is mainly due to the service on billing and collection of PSC and PSSC payable to IATA amounting to RM2.6mil.
12
BALANCE SHEET ANALYSIS Capitalization of
KLIA2 construction costs and transfer of SIC Circuit (~RM320mil) from PPE to Other Receivables
RM’mil
Raised two tranches
Sukuk totalling RM2.5bil
Cash from
RM2.5bil Sukuk issuance
FRS impact
from Sabiha Gokcen
Strong balance sheet 13
FY2010 - AIRPORT OPERATIONS Financial Position
Key Ratios
Growth driven by strong pax number. 15
REVENUE ANALYSIS - AIRPORT OPERATIONS Aeronautical(RM ‘mil) FY2010 : RM868.7(+9.9%) FY2009 : RM790.5
Non Aeronautical(RM ‘mil) FY2010 : RM806.5(+14.2%) FY2009 : RM706.1
RM’mil
High growth in PSC due to 21.3% international pax growth (5.6% domestic pax growth) Retail business growth outpaced overall pax growth Higher rental revenue as a result of an increase in commercial space due to LCCT expansion and SROP
16
OPERATING COSTS - AIRPORT OPERATIONS
FY2010: RM958.1 mil (+12.2%)
RM’mil
Operating Costs 6m 2010: RM471,772 FY2009: RM854.2 mil (+11.37%)
Increase in Operating Costs mainly due to higher staff costs & utilities costs 17
REVENUE & COSTS ANALYSIS - AIRPORT OPERATIONS
18
KLIA – TOTAL SALES
Sales per passenger for KLIA (inc. LCCT) increased 1.3% in FY2010 to RM29.64 per person, with LCCT registering higher sales per pax growth of 7.3% at RM21.68 In terms of dollar value, sales per pax value in KLIA (exc. LCCT) dominates LCCT by approximately 66.8% at RM36.16 per pax (vs FY2009 sales per pax of RM36.39 at MTB) Total proportion of sales in LCCT has risen from 32.9% in FY2009 to 30.5% in FY2010 in line with the LCCT expansion completed in April 2009 20
KLIA – ERAMAN RETAIL REVENUE
MAHB’s own retail arm, Eraman’s business grew due to higher retail and F&B income as a result of increase in passenger volume Retail revenue per pax in KLIA (inc. LCCT) grew 4.7% in FY2010 to RM10.46 per pax (FY2009 RM9.99 per pax) 21
KLIA – RENTAL ANALYSIS
Rental revenue in KLIA increased 18.9% in FY2010 compared to FY2009, which are in tandem with the increase in space: LCCT expansion completed in Apr-09 Retail Optimisation Plan at KLIA (ex. LCCT) completed in Nov-09
22
PAX MOVEMENT (‘mil pax)
Total passenger volume for FY2010 was 57.8 million, which was 12.7% higher than FY2009. International and domestic passenger movements grew by 21.3% and 5.6% respectively
24
AIRCRAFT MOVEMENT (‘000)
Total aircraft movements in FY2010 was 578,086 (+7.9% from FY2009) International sector recording a higher growth of 11.6% compared to the domestic sector which registered 5.9% growth.
25
CARGO MOVEMENT (‘mil metric tonnes)
Cargo movements increased as a result of economic recovery 26
SHARE PRICE VS FBMKLCI Percentage (%)
Consistently outperform the benchmark FBM KLCI
Performance End date: 31/01/11 closing price
28
LTM SHARE PRICE vs AIRPORTS PEER (1)
MAHB share price amongst the best performers in the last twelve months, and have outperformed all composite buckets since 2007 with cumulative returns of 211.2%.
LTM = Last twelve month; Data as at 26/11/10; (1) The composite bucket include companies of the corresponding regions on the left hand side. Source : Nomura
29
PEER FINANCIAL BENCHMARKING
MAHB has comparable strong financial profile amongst peer.
(1)
Average excludes Sydney Airport, see footnote 3; (2) Multiple Airports; (3) Sydney Airport was acquired by the Southern Cross Airports Corporation Consortium in 2002 as a leveraged buyout, which issued senior secured debt that is consolidated in the credit rating. Source : Nomura
30
COMPARISON - MTB, LCCT & KLIA2
KLIA2 will be a game changer – an opportunity to apply different policies to get the desired commercial results Source : Booz & Company Analysis
32
AIRPORT COMMERCIAL SPACE Commercial v.s Non-Commercial Space Benchmark In ‘000 Sqm
240
480
1
64
710
1,018
2
499
561
4
Total GFA5
3
Relatively high portion of airport space proposed to be allocated to commercial in KLIA2 LCCT Largely biased towards F&B offerings while KLIA towards retail F&B does well at the LCCT due to the low-cost carrier profile (no free meals on board) as well as larger local population Source: Booz & Company Analysis 1) Proposed allocation as of July 2010, 240,000Sq.m GFA, 30 millions passengers, excluding Landside mall, 2) Excluding Budget Terminal, 3) Excluding concourse and transportation centre, 4) Minimum estimation from King Power data, 5) Gross Floor Area (‘000 Sq.m)
33
KLIA - TOP 5 PRODUCTS Top 5 Categories by Nationality July 2010; % of Total Sales DF - Perfume & Cosmetic DF - High Fashion (Men) DF - Confectionery
DF - Cigarette
DF - Liquor
49%
9%
6%
5%
4%
Contribution to Sales (%)
145
217
140
146
131
Average Spend Per Transaction ‘RM
Top 5 categories of products made up ~90% of total spend for each nationality To focus on core duty free business Source : Booz & Company Analysis
34
KLIA2 PRODUCT MIX EVALUATION PROCESS
Manage partner performance Enforcement and review Exit planning
Maximise partner participation Increase awareness of objectives Advertising and promotions
Higher level understanding
Segment targeting Segment needs
Future category Determine space allocation Determine value for money Determine brand mix
Developing and implementing the category mix starts with knowing the target customer
35
AGE DEMOGRAPHIC – MTB & LCCT Demographic Profile of MTB Passengers1
Demographic Profile of LCCT Passengers 1
% of Passengers in Each Age Group
% of Passengers in Each Age Group
~75% of passengers are 16-44 years old
~69% of passengers are 16-44 years old
Age
Age
Gender
Gender Male
Female
Male
Female
Passengers at the LCCT are slightly younger Source : Booz & Company Analysis 1)
ASQ Survey 2009 0(Note: Sample size 3,253 (2007); 3,279 (2008); 3,311 (2009))
36
TRAVELLING PURPOSES Demographic Profile of LCCT Passengers
Main Purpose of Travelling
% of Passengers in Each Age Group
2010; % of Passengers Others
~67-70% of passengers travel 1-5 trips per year
Visiting friends or relatives Studies Business
Leisure
MTB
MTB serves more business/ student travellers comparing to LCCT
Trips per year
MTB
LCCT
Passengers at the LCCT mostly travel for leisure and mostly travel more than 1.5 trips per year Source : Booz & Company Analysis 1) Customer Survey Data as of August 2010 Note: Sample size 550
37
KLIA2 – MID RANGE OFFERINGS Average spend by category ‘RM
KLIA MTB LCCT
LCCT have a lower purchasing power than passenger at KLIA – mid-range brands appropriate at KLIA2 Brand positioning at KLIA2 will need be in the middle-upper range Lifestyle related services at KLIA2 – 80% of passengers indicate that they rest after check-in – relaxation, lounges facilities and services are important offerings to have Demand for F&B at the LCCT is growing rapidly – To have sufficient range and quality at KLIA2 Many passengers eat before or after they take an LCC Flight Fast food & quick bites category perform the best
Source : Booz & Company Analysis, figures based on year 2009
38
FRS 139 EFFECTS – FY10 Background
FRS 139 requires all financial assets and liabilities to be measured at fair value. The fair value of noncurrent assets and liabilities in MAHB’s Group accounts except for unquoted investment, is the present value of estimated future cash flows, discounted at the original effective interest rate (“Amortised costs method”).
Note a: Changes in carrying amount of non-current trade debtors, measured using amortised cost method. The non-current debtors represent amount outstanding from (a) KL Airport Services Sdn Bhd (KLAS) and (a1) Government for option to purchase SIC Circuit, both due after 12 months from the reporting date. Note b: Changes in carrying amount of non-current liability, measured using amortised cost method. The non-current liability represents Residual Balance (balance of amount due to the government which is to be offset against future revenue shares) which is expected to be realised after 12 months from the reporting date. Note c: Reversal of amortisation of concession rights resulting from the restatement of the concession rights amount at fair value. Note d: Share of Associate Profit – Sabiha Gokcen International Airport with FRS 139 adjustments. The adjustments are mainly changes in carrying amount of liability due to Turkey’s Government for concession right received to operate the airport. The liability is stated at the present value of future payments until January 2030. 40
SGIA P&L
MAHB’s Share
41
TOURISM STATISTICS Tourist Arrivals YTD-Nov
Tourist arrival – 14.2% CAGR (11-year)1 Tourist arrival registered 4.4% growth (YTD-Nov)
(1) Year 2009 figures as at Nov-10
42
x
MALAYSIA AIRPORTS HOLDINGS BERHAD PEJABAT KORPORAT PERSIARAN KORPORAT KLIA 64000 KLIA SEPANG, SELANGOR TEL: 603-87777000 FAX: 603-87777778
