23rd AGM: Successful COVID-19 mitigation initiatives and cost efficiency measures affirmed the Group’s strength in FY2021
SEPANG - Malaysia Airports Holdings Berhad (Malaysia Airports or the Group) successfully concluded its 23rd Annual General Meeting (AGM) today, with all 5 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders. The global airport operator continues to show strong resiliency during the pandemic in FY2021 by achieving positive earnings before tax, interest, depreciation, and amortisation (EBITDA) of RM220.3 million, an increase of over 100% from FY2020. It also recorded improved FY2021 net operating cash generation of RM271.1 million. Pandemic mitigation initiatives had also reduced core operational expenses by RM723.3 million over the last two years while increasing FY2021 cash and funds by 34.6% to RM2.31 billion. On the whole, the Group recorded total revenue of RM1.67 billion and total passenger movements of 36.1 million across its network of airports in FY2021.
Managing Director of Malaysia Airports, Dato’ Iskandar Mizal Mahmood said, “Our performance for FY2021 was mainly driven by cost efficiency and improvement in Istanbul Sabiha Gokcen International Airport’s (SAW) operations that led passenger recovery by recording 70.6% of pre-COVID traffic. We had successfully implemented cost efficiency measures that helped retain our AAA and A3 credit ratings by RAM Holdings Berhad and Moody’s despite the challenges posed by the pandemic. KL International Airport and Langkawi International Airport were also named ‘Best Airports’ by Airports Council International in the global Airport Service Quality awards series for 2021. These acknowledgments will strengthen our growth initiatives while our airports stay primed for the return of air travel demand. Various mission critical initiatives such as the replacement of ageing assets are also taking shape as planned to ensure we continue to provide safe, seamless, and world-class experiences at our airports moving forward.”
As borders reopen, the Group is pivoting to an enterprising mindset, allowing for new revenue streams and further growth opportunities. This will be achieved by three main pillars; bringing back international passengers, rejuvenating commercial and retail business, and accelerating off-terminal development. The first pillar, bringing back international passengers, focuses on reestablishing lost network and rebuilding connectivity. The Group also aims to strengthen its route and market development while enhancing engagement with airlines.
For the second pillar, rejuvenating commercial and retail business, the Group is expanding its non-aeronautical portfolio to drive revenue in line with the resumption of commercial activities at the airports. Passengers can look forward to new retail offerings comprising 70 sought after brands such as Hard Rock, Jamie Oliver, Taco Bell, and Sense of Malaysia. Under the Commercial Reset initiative, the Group has been able to unlock 14,355 sqm of new commercial space, and while expanding its omni-channel capabilities.
The third pillar to help spur Malaysia Airports’ way forward include off-terminal opportunities. The Group will continue to prioritise the expansion of KLIA Aeropolis through three core clusters: aerospace and aviation, cargo and logistics and MICE and leisure while Subang Airport (SZB) focuses on its aerospace, business aviation and urban community ecosystem. Some near-term major developments include the DHL Express Air Cargo Gateway and Asia Digital Engineering’s MRO Centre for Excellence in KLIA as well as Collins Aerospace state-of-the-art component MRO facility in Subang.
During the AGM, Chairman of Malaysia Airports Dato’ Seri Diraja Dr. Zambry Abd Kadir, said, “By building resilience, creating sustainable pathways for revenue and growth, and improving our capability to withstand future shocks and stresses, we are prepared to take bold actions this year to succeed in the new normal. Among the strategic decisions that we made in 2021 such as maintaining the full strength of staff has allowed us to immediately capture growth opportunities when borders reopened.”
Dato’ Seri Diraja Dr. Zambry then concluded the AGM and extended his appreciation on behalf of the Group’s Board and Management to all shareholders; airline and retail partners; government and regulatory agencies, business partners, vendors, and suppliers for their continuous support and trust.