Executing an Effective Roadsho · AirAsia takeover by Tune Air Holdings – Tune Air (group of 5 entrepreneurs) bought AirAsia from DRB Hicom – S&P agreement concluded Dec 8th 2001

Executing an Effective Roadshow Mohshin Aziz, 18 March 2008

Brief AirAsia History

The “OLD” AirAsia – owned by DRB-Hicom – full service carrier with two aircraft – consistently loss-making since day one of operations (1993)

AirAsia takeover by Tune Air Holdings – Tune Air (group of 5 entrepreneurs) bought AirAsia from DRB Hicom – S&P agreement concluded Dec 8th 2001 – purchase price of RM1 and RM40 million of liabilities

The “NEW” AirAsia – AirAsia relaunched as a Low-Cost Carrier in Jan 2002 – consistently profitable since new management takeover – continuous route expansion into Asia

2

What makes the new AirAsia different?

Lower Air Fares Lead-in fares up to 80% cheaper than standard economy class fares.

Early booking = cheaper fares

Late bookings = higher fares

Guaranteed lowest fare in the market on any route flown

Our Services Single class seating

Focus on short haul (within 3 hour flight), point to point market only

Easy Booking: Internet, Call Centre & Travel Agent/ Ticket Desk

“no-frills” in-flight service: quick turnarounds (25 minutes), more flights per aircraft and reduced costs; sells food

1

2

3

Ever Expanding Route Network

65Jun 200675Jun 2007

52Jun 2005

90

26116

# Routes Served

Jan 2002

Jun 2004

NOW

Jun 2003

Period

KL – Guangzhou KL – Yogjakarta

Latest Routes

Upcoming RoutesKL – Hong Kong KL – Ho Chi Minh

4

5850

34

23 22 18 17 15 1515 15

0

20

40

60

JAL AN A Q antas EVA KoreanAir

Thai SIA AirAsia Cathay Emirates MAS

Asia’s Eight Largest AirlinesPax per year (million)

5

The Most Profitable Airline in the World

* Latest available fiscal year, Ryanair and AirAsia is trailing twelve months

^ Excluding deferred taxation write backs

EBITDAR Net Income ^ EBIT% % %

AirAsia 34.9% 23.5% 21.2%Air Arabia 20.5% 13.5% 10.1%WestJet 27.5% 9.1% 18.0%VirginBlue 25.3% 9.9% 15.0%GOL 12.4% 2.1% -0.5%EasyJet 16.6% 8.5% 9.6%Ryanair 29.3% 19.7% 20.5%AirTran 18.6% 2.3% 6.0%JetBlue 19.8% 0.8% 5.9%SouthWest 15.2% 6.5% 8.0%Average 22.0% 9.6% 11.4%

6

^

Accolades and Recognition

“Best Low Cost Airlines in Asia” Skytrax, Independent UK based company – passengers cast their votes – recognition from passengers of our quality and services

“Airline of the Year 2007” Aviation market intelligence – comparison to all the world airlines – highest recognition by a professional organization for our services

7

Executing a Road Show

Why go for a Roadshow?

Best level of communication – fund managers are more comfortable in their own setting – best opportunity to introduce their team to you

Confidentially – fund managers are at ease asking the most sensitive questions

– freedom of communication behind closed doors – fund managers to ‘test’ their models

Understand the market intimately – opportunity to meet various funds – understand the different type of investment philosophies – understand which risks the markets are comfortable with, and which risks that they are not comfortable

9

How to Organise a Roadshow

Take the simple approach let a broker house do it for you

Advantages of a broker house – huge database of fund managers and traders

– strong support of sales team everywhere you go – aware of who are interested in your industry – partial compensation (ground transfers, meals, etc)

Disadvantage of a broker house – sometimes they just keen to show-off to their clients rather than focus to ensure these are people who will buy your company – expect special preferential treatment in the future

10

Factors to Consider which Broker to Use?

Analyst reputation – it increases the stature of the road show – ill repute analyst will tarnish the image of the road show

House recommendation – investment company policy requires them to solicit with sell-side analyst before making an investment decision

– therefore avoid going with a house with a “sell’ call

Spread road shows among brokers, assess the quality of each meetings

– retain them if they succeed – if they screw up, they go to the bottom of the list next year

11

How to make sure Brokers don’t mess up the Roadshow

Contact your major shareholders in advance – email or call them and say that you are coming to town – if they are interested, contact the broker house

Demand for an itinerary in advance – this enables you to gauge their organizational skills

– you may add or change things you don’t like

12

We have Crossed the Globe to Tell Our Story!!

The global roadshow allowed us to show the world why we are the leading Asian LCC

London London

Edinburgh

Kuala Lumpur

SingaporeSingapore

New York

Hong Kong

Boston Los Angeles /

San Francisco

FrankfurtMilan

Kuala Lumpur

Thursday 14-Oct Friday 15-Oct

Monday 18-Oct Tuesday 19-Oct Wed. 20-Oct Thursday 21-Oct Friday 22-Oct

Monday 25-Oct Tuesday 26-Oct Wed. 27-Oct Thursday 28-Oct

Kuala Lumpur

Singapore

Hong Kong

London

Edinburgh

Milan

Frankfurt

New York

Boston

Los Angeles

San Francisco

13

The Secrets to ensure a smooth Roadshow

Prepare a plan, but more importantly have a backup plan – things never go the way you want them to

Gauge your boss past behavior when on a trip! If he is impulsive and changes his mind all the time, then – make sure you buy fully refundable air tickets

– stay in hotels that allow last minute cancellation, if possible – bring at least two management people

Have a backup for everything – have a copy of the latest schedule downloaded in your cell phone – have softcopies of the presentation, and data on a thumb drive or CD – make sure your boss also has a copy (hard and soft copy)

14

Going the extra mile

Download airline information and schedules to your laptop

– in the event require last minute changes, you won’t panic! – can maneuver the situation very comfortably

Bring some nutrient pills. If your boss has medical condition, have a copy of the prescription

Keep the phone numbers of the Malaysian embassy

– you never know

15

Gauging the success

How to Measure Success?

Very Subjective – share price increase? – volume of shares traded?

– upgrade from sell-side analyst ratings?

17

Important

18

Ask broker to make a feedback report – what does the fund manager think or say about the roadshow? – did the funds place an order after the roadshow?

– is the fund manager performing some analysis on the company after the roadshow?

– is the fund placing an order for another company of the same industry after the roadshow?