Strong Performance Amid Turbulent Skies

Fourth Quarter 2009 Results
25 February 2010

Disclaimer
Information contained in our presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information may contain projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks factors and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. This presentation can be distributed without any consent of the Company as this is a publicly available announcement.

1

produced core operating profit of THB148 million – market recovery with buoyant demand and high passenger traffic – with more Airbus A320.2 million ‰ Thailand has recovered. positive outlook for the first quarter 2010 – fleet renewal will significantly reduce cost and enhance operational reliability ‰ Platform has been established for associates to repay to the parent Company beginning 2010 and expected to fully paid by 2013 ‰ Cash balance of RM748 million.6 times 2 .Key Highlights for 2009 ‰ Strong results given challenging operating environment – core operating profit RM447 million – sustained strong passenger growth of 21% to 14. gearing contained at 2. cost structure will improve and so will profits ‰ Indonesia is making positive progress – market is recovering.

481 Change y-o-y 11% 59% 148% 3.7 ppt n/a ‰ Profit after tax of RM549 million. reverse from losses in 2008 – strong top line growth coupled with superior cost containment ‰ Lowest cost airline in the world at 2.3% -17.453 Profit after Tax Core Operating Profit Margin Profit after Tax Margin 549.3% (496.4% n/a 7.Malaysia: 2009 in a Snapshot Year Ended: 31 December RM'000 unless otherwise stated Revenue EBITDAR Core Operating Profit Jan-Dec 2009 Jan-Dec 2008 (restated) 2.819 180.324.1% 17.178.851.234 447.786 833.854 1.054 14.563) 6.95 US cents / ASK ‰ Maintaining strong growth trajectory – demand in line with capacity deployment of 17% 3 .

1 million) AirAsia Thailand Cost / ASK Thailand is Back to Normal Stable cost ‰ Airbus A320 replacement into fleet is – enhancing efficiency – Increasing capacity – lowering operational cost ‰ Underlying demand has recovered to normal levels – strong tourist arrivals numbers – buoyant domestic market – supports for higher yields 4 .Thailand: 2009 in a Snapshot Î Produced core operating profit of THB334 million (RM34.

CASK spread – Australia and Singapore routes are high yielding and high loads 5 .Indonesia: 2009 in a Snapshot Î Platform for sustained profitability has been established Indonesia AirAsia Cost / ASK Demand is Stable ‰ Airbus A320 replacement into fleet is – enhancing efficiency – increasing capacity – lowering operational cost ‰ Access to international routes has significantly improved operations – improved the RASK vs.

AirAsia X: 2009 in a Snapshot Î The long haul. low cost model is proven successful Passengers Carried Revenue (RM million) ‰ Strong level of acceptance of AAX services as seen by high passenger growth and load factors ‰ Upgrading fleet with new seats – extra comfort at better value ‰ First quarter 2010 looking positive with strong loads and high yields ‰ Produced profits in 2009 6 .

9 15. 0 Generating Revenue Through Innovation 29. 0 0.Ancillary Income AirAsia Ancillary Income Growth Ancillary Income (RM million) Spend / pax % Revenue 500 450 25. 0 Pick A Seat 136 7.1% 8. 0 2007 2008 2009 ‰ Ancillary income growth outpacing passenger growth rate ‰ Relatively stable profits as it is seasonally insensitive ‰ Further growth potential at limited additional cost 7 .1 30. 0 235 10.1% 5.2% 13. 0 13.9 415 20. 0 400 350 300 250 200 150 100 50 0 19.

Thailand. Indonesia) ‰ Servicing 18 countries ‰ Nine bases across network ‰ 627 flights per day and growing 8 8 .Route Network Constantly Growing AirAsia Group Route Network AirAsia Group Routes 136 104 75 65 52 26 6 11 2002 2003 2004 2005 2006 2007 2008 NOW Note: Years represent December year end Number of routes includes AirAsia X services Biggest LCC in Asia ‰ Operations across three countries (Malaysia.

S tage Length 8 .9 0 3 . AirAsia Berhad’s 2009 Î Lowest cost LCC in the region and the rest of the world 9 . Tiger Airways IPO prospectus.0 500 1 000 S t ag e leng t h (km) 1500 2000 Source: Company annual reports.Lowest Cost Airline in the World Cost / AS K vs.0 2.0 3 .94 Tig er 0 .3 4 W e st Je t COST / ASK (US cents) 6 .0 So ut hW e st Je t Blue 2 .0 GO L EasyJe t A irT ran V irginBlue Ryanair 4 .

Result Commentary .Full Year 2009 .

854 447.3% ‰ Strong ancillary income growth offsetting impact of lower fares ‰ Lower cost underpinning high profitability ‰ Stable load factors despite significant capacity addition and new routes 11 .563) 6.786 180.851.3% -17.7 ppt n/a ‰ Strong profit after tax performance of RM549 million – industry leading margins of 17.054 14.481 (496.4% 11% 148% n/a 7.178.Summary of 12 Months Result Full Year Ended: 31 December RM'000 unless otherwise stated Revenue Core Operating Profit Profit after Tax Core Operating Profit Margin Profit after Tax Margin Jan-Dec 2009 Jan-Dec 2008 (restated) Change y-o-y 3.1% 17.3% 2.453 549.

8 3.6 times Note: Calculation includes aircraft loans for associates 12 .7 3.6 3.5 Capital Raising Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 ‰ Cash position of RM748 million – reduced net gearing level to 2.9 1.6 1.1 2.Balance Sheet Net Gearing (Net Debt/ Equity) 3.6 2.

Fourth Quarter 2009 .Result Commentary .

006 5.4% 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 17.4 14.Capacity Rollout Matches Demand Capacity Rollout (ASK million) +17% 5.863 Revenue / ASK (sen) Î Average fare drop is offset by higher ancillary income contribution Î Average stage length reduced by 3% -18% Q4-2008 Q4-2009 Load Factor (%) 78.2 Q4-2008 Q4-2009 Q4-2008 Q4-2009 The operations can sustain the rapid capacity growth 14 14 .4% +1 ppt 79.

Outlook .

Aircraft Delivery Schedule Airbus A320 Delivery Schedule Quarter 1 (Jan – Mar) Quarter 2 (Apr – Jun) Quarter 3 (Jun – Sep) Quarter 4 (Oct – Dec) Total Airbus A320 Delivery Note: Deployment schedule for the AirAsia Group # Aircraft 0 6 6 4 16 ‰ Taking delivery of 16 Airbus A320 aircraft ‰ Aircraft deployment schedule Malaysia = 4 Thailand = 8 Indonesia = 4 ‰ Returning all remaining Boeing 737-300 aircraft 16 .

Realigned Fleet Schedule to Achieve Optimal Growth and Operational Requirements AirAsia Group Net Fleet Size Boeing 737-300 Airbus A320 Capacity (ASK) Growth Projection Malaysia Thailand Indonesia 23% 20% 14 173 149 125 70 86 101 175 21% 11% 12% 9% 2009 2010E 2011E 2012E 2013E 2014E 2015E 2010 2011 ‰ Deferred an additional eight aircraft for 2011 deliveries – to address airport infrastructure constraints at Kuala Lumpur LCCT – total of 16 aircraft deferred for 2010 & 2011 deliveries ‰ Boeing 737-300 aircraft are 100% phased out by 2010 ‰ One of the youngest Airbus fleet (2 years) 17 .

Network Expansion Plan ‰ Launching between 9-12 new routes – combination of new routes and cross linking from existing bases ‰ Emphasis on India – Kuala Lumpur to Bangalore. Hyderabad and Chennai – Bangkok to Kolkata and Delhi – Penang to Chennai ‰ Cross connecting from existing bases – Kota Kinabalu to Taipei – Penang to Bali – Kuala Lumpur to Yangon ‰ Enhance frequency on selected routes to capture more growth and dominate the route 18 .

Demand Remains Robust % Total seats sold as of 22 February 72% 64% 2009 2008 43% 41% 27% 18% 19% 11% Feb Mar Apr May ‰ Underlying demand remains positive – forward booking numbers ahead than last year – load factors ahead than the same period last year 19 .

Summary ‰ AirAsia is well placed to take advantage of economic recovery – passenger growth momentum is buoyant since – tighter supply demand is supporting for higher yields ‰ Managing risk – hedged up to Dec 2010 for more than 24% of fuel requirement using fixed swap using Jet Kerosene and crack – continue to monitor the market for more hedges in 2010 and further ‰ New routes performing well ‰ Passenger growth robust across the Group – Malaysia is enjoying good loads and support for new routes – Indonesia’s load is robust with better yields – Thailand growing market share and expanding routes ‰ Working with auditors to consolidate Thailand and Indonesia ‰ Fleet renewal programme on track for completion in 3Q 2010 – received six Airbus A320 aircraft in the period 20 .

Appendix .

Fleet Composition (31 December 2009) Number of Aircraft Malaysia Thailand Indonesia Group Total Total 48 20 16 84 Airbus A320 Boeing 737 48 12 10 70 0 8 6 14 22 .

36 1.11 2.14 3.37 0.47 3.16 0.42 0.15 0.71 0.95 0.11 2.73 FY2009 0.33 0.04 0.15 0.11 0.30 0.13 0.44 Q3 0.41 0.25 0.15 0.26 0.29 0.21 0.46 3.35 1.13 0.27 0.17 0.30 0.44 0.34 1.25 0.38 1.22 Q2 0.43 0.37 0.67 Q4 0.21 0.38 1.26 0.Cost Breakdown – 2009 Cost / ASK (US cents) Staff Costs Fuel and Oil User Charges and Station Expenses Maintenance and Overhaul Aircraft related cost Depreciation & Amortisation Others Sales & Marketing Total Cost / ASK Finance Expense Cost / ASK inclusive Finance Cost Q1 0.09 0.39 0.24 0.46 3.14 0.29 0.51 3.17 3.14 2.42 23 .93 0.41 0.51 3.

45 0.26 0.40 4.19 0.26 0.49 4.27 1.46 0.Cost Breakdown – 2008 Cost / ASK (US cents) Q1 restated Q2 restated Q3 restated Q4 restated FY2008 restated Staff Costs Fuel and Oil User Charges and Station Expenses Maintenance and Overhaul Aircraft related cost Depreciation & Amortisation Others Sales & Marketing Total Cost / ASK Finance Expense Cost / ASK inclusive Finance Cost 0.13 3.18 0.50 0.14 0.39 0.17 0.17 0.11 3.83 0.15 0.86 0.17 0.14 4.17 0.13 0.45 0.80 0.12 0.13 3.13 0.84 0.34 0.34 2.36 2.64 0.73 0.26 0.22 0.43 0.92 0.19 0.23 0.46 0.84 0.00 0.35 1.38 2.28 24 .34 3.20 0.16 0.13 0.45 4.14 3.15 0.26 0.53 4.