ANNUaL REPOrT 2012

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S3 d (Co KLIA Berha nal, Jalan one a i s AirA C Termi rt ort Z Supp onal Airpo alaysia LC n r e i h t t M a u , So Intern Ehsan mpur or Darul 8775 1100 u L a l g Kua elan 603ang, S 4333 Fax: airasia.com p e S 0 @ 6400 603-8660 rrelations o t s Tel: e v il: in E-ma

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AIRASIa BERHaD (284669-W)

www.airasia.com

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entous another mom lstars for yet oud of what pr e ar Thank you Al r no , Tony and Co and year! Me, Aziz e last 11 years; hieved over th ac s to come e or m AirAsia ha be ill w , re that there in yourselves you can be su Keep believing s. ar ne rli ye ai 10 e xt th in the ne we will lead and together stay focused, ights. to greater he

ably t not , mos arrier by s u r o ar f st C he w-Co ne ye e of t ilesto s Best Lo lue Airlin going m a a was orld r on nd V 2012 ning the W in a row a derline ou None of n n y. s i u r f a w s n e for ort o ur y e ca ward ax fo ese a g everyon t the supp our h T . Skytr W in nt, hou by AT t to ensur geme le wit Year mana beloved ossib p e men t h n i t e , m r e s com ave b f Director course ou t our u uld h it wo e Board o ers and of througho th us old h h t i e r God, w a rs, sh been Allsta who have kar . s t n s r u ey bu Ba gue Bin A ble jo a z r n i a o z lA irm mem Abdu utive Cha c ziz @ e A x l E e n t No Abd Dato nden depe In n No

In 11 years, AirAsia Group has grown from a two-aircraft eet to the largest LCC in Asia with 123 aircraft, and has become one of the most protable airlines in Asia. From our launchpad in Malaysia, we have taken our brand and stamped our footprint in Thailand, Indonesia, the Philippines, Japan and soon India. I cannot stress enough the role that our 10,000 Allstars have played in achieving our phenomenal growth. Their passion and sheer grit have catapulted AirAsia into one of the leading brands in the world. Tan Sri Dr. Tony Fernandes Group Chief Executive Officer and Non-Independent Non-Executive Director

There has never been a dull moment in my 11 years with AirAsia, as every year is lled with new experiences. Nobody believed in us when we started out, yet here we are, the leading low-cost airline in the region with extensive connectivity that is allowing everyone to travel and see the world. This success is due to the efforts of our Allstars who truly make dreams come true for our guests. Conor Mc Carthy Non-Independent Non-Executive Director

in bin Meranun Dato Kamarud Officer and ief Executive Ch p ou Gr ty pu De utive Director ent Non-Exec Non-Independ

s m a e r d m o fr y t i l a e r to

es to d n a rn ny Fe ook over o T . r t D ends nced n Sri i r a f T f d eam o like-minde ent annou was a r d d of em y, it ishe r g p e a u n h n o a c r a c g gnd a new m in Asean a lon a , e 1 e h 0 t h e 0 ber 2 true when OM. When t everyon lation. but to m e t sean a p A u C e h e I s p s t S m H t acro On 8 airline ca rom DRB- carrier so n or so po ot jus n , s r a o f n li st 11 ye ting own a ng AirAsia a low-co s 600 mil romo e last e day. h p t y r b e h ov nd yt n in te n ili ars; a oundatio uests network b t g s l l n the a an to crea the regio A o F li f our Asia 4 mil route to pl r ions o of the Air issues. d wn 17 rease our i t i o e e b s h i m e t l p a av nc socia ting u areer We h prom e to i m the c th the set ation and true. e continu a ging our g e e n i r m t d w co coura erv f por . Wi
p n ns en so has and by su the regio ritage co s and he dream e ream c region, m u d r a t t e e a n r t i h e h d , i t d h m t c r , t n o n y a e a d you bigg Toda er Asia-P ams c opme ams, g dre of talente rial devel id ng on e our dre i n i w k k a e t a h u s k t e m e a d we ar an m e are epren undre Now, nce, we c hat, w tions of h ning entr . t m n a a e io th ra to dre ersist More rting aspi lso champ ared ion and p d a o e p w s w s s e the e no ith pa ecaus we ar are b ve that w e 2012, w e ie wher e bel ot to ig too. W g e v a b We h to dream rue. s t r e e h ot com , s r e v belie

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w o Far REViE e Flying S ss E r BUsin here We W irAsia 108 Thai A ia AirAsia s e 112 ia Indon es AirAs in p 118 ip Phil an ia Jap 124 AirAs X e ia 130 amm AirAs alty Progr 4 nce y 3 1 o xcelle ia Big L xped entre of E E ia 140 s AirA viation C A 142 Asian edia 146 cial M come o S 148 lary In Ancil 152 y Y g munit ervin e Com rency & S h t stainabilit U g S Servin of Transpa re 158 Cultu ce en 166 ll e c x place onment E Work ir r a st s & the Env ll A cy n 168 ie c Effi 174 Growth t VEs & mmitmen o C nitiati I NTS afety KEY Our S TEME L STA 176 A I C AN D FIN S AN bility T R O a REP unt rt Acco Repo 182 irectors tements D ta cial S 198 Finan formation 2 20 r In Othe orm F 296 Proxy

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y e n jour f o
11 January AirAsia is named Value Airline of the Year by Penton Medias Air Transport World (ATW). 20 January AirAsia goes live with new operational management system - Merlot.aero. The system smartly forecasts, organises, predicts, measures and reports daily aircraft and crew utilisation.

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7 February AirAsia commences the Kuala Lumpur-Surat Thani route with a full ight. 14 February AirAsia signs a ve-year Multi-crew Pilot License (MPL) training contract with CAE. 6 March Indonesia AirAsia celebrates its 100% Airbus eet, and implements a single-eet policy aimed at improving efficiency. 9 March AirAsia Indonesia celebrates its maiden ight from Jakarta to Makassar with an 80% load factor. 23 March Thai AirAsia launches inaugural ights from Bangkok to Chongqing, China, and Chennai, India. 28 March Philippines AirAsia launches its rst ights to Davao and Kalibo. 2 April eezeer.com reports AirAsia as number one on Twitter and top for two main categories - Best in Class and Airline Listening Champion. 3 April For the second time in a row, AirAsia wins Best Investor Relations Company for Malaysia, Best CEO for Malaysia and Best Investor Relations Officer for Malaysia at the 2nd Asian Excellence Recognition Awards by Corporate Governance Asia held in Hong Kong. 9 April AirAsia enhances its Fly-Thru service from Jakarta, Bandung, Medan and Surabaya in Indonesia to cities and special administrative regions in China such as Guangzhou, Shenzhen, Macau and Hong Kong via Kuala Lumpur. 11 May AirAsia unveils a brand new corporate identity in line with its 10 Awesome Years campaign, which includes a new television commercial featuring Allstars and ight attendants in their new weekend uniform.

2 February AirAsia welcomes its 100th Airbus A320, featuring a special dragon livery to celebrate the new Chinese lunar year of the dragon, which is also the zodiac of Group CEO Tan Sri Dr. Tony Fernandes. 6 February AirAsia enhances its MalaysiaIndonesia link with daily ights from Kuala Lumpur to Semarang - the 14th Indonesian destination own by AirAsia from Kuala Lumpur.

14 May AirAsia offers 250,000 free seats from a total of 1,000,000 promo seats available to all destinations. 18 May AirAsia announces an extended partnership with Queens Park Rangers (QPR) for the 2012/13 Barclays Premier League (BPL) season. 22 May Thai AirAsia launches its inaugural ight from Chiang Mai to Macau.

6 June The Malaysian Investor Relations Association Berhad (MIRA) presents Tan Sri Dr. Tony Fernandes with the Best CEO for IR Mid Cap award, and names Benyamin Ismail, AirAsias Investor Relations Manager, as the Best IR Professional Mid Cap. 8 June AirAsia wins the Worlds Best Air Cargo Industry Customer Care Award 2012 in Shanghai, China, for the second consecutive year. 8 June Indonesia AirAsia celebrates its inaugural Bali-Yogyakarta ight with a load factor of more than 85%.

1 July Tan Sri Dr. Tony Fernandes and Dato Kamarudin Meranun are redesignated as Non-Independent Directors of AirAsia Berhad. 5 July Aviation Week magazine announces AirAsia as the Top-Performing Airline in 2012. 12 July AirAsia signs a 10-year agreement with ST Aerospace for aircraft maintenance. 13 July AirAsia is voted Skytrax Worlds Best Low-Cost Airline for the fourth consecutive year.

14 August AirAsias BIG Global Loyalty Programme launches free membership.

15 August AirAsia announces direct ights from Kuala Lumpur to Lombok, Indonesia. 28 August AirAsia announces direct ights from Johor Bahru to Surabaya, Indonesia.

30 May AirAsia Japan announces direct ights to Sapporo, Fukuoka and Okinawa with a promotion of 10,000 seats and fares as low as 5.

18 June Aireen Omar is announced as AirAsia Berhads new Chief Executive Officer.

19 July AirAsia is named KLIAs Airline of the Year and Low Cost Airline of the Year, while Indonesia AirAsia is named Foreign Airline of the Year and Foreign Airline of the Year By Sector South East Asia by Malaysia Airports. 1 August AirAsia Japan starts services with daily ights to Fukuoka and Sapporo from Narita International Airport, Japan.

3 September AirAsia Chief Financial Officer Andrew Littledale abseils from Londons tallest building, The Shard, to raise funds for The Outward Bound Trust and the Royal Marines Charitable Trust Funds, UK. 6 September AirAsia Cargo is awarded the Rising Star Carrier of the Year at the Payload Asia Awards 2012. 12 September AirAsia announces the new Kuala Lumpur-Nanning route.

31 May Asia Aviation Limited (AAV), the holding company of Thai AirAsia, is listed on the Stock Exchange of Thailand, raising over US$230 million from the IPO.

21 June AirAsia becomes the rst airline and public listed company in Asia to launch an Annual Report App.

7 August AirAsia Asean headquarters is launched in Jakarta, Indonesia.

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17 September AirAsia launches its 1 Million Free Seats promotion. 29 September Thai AirAsia receives its rst owned aircraft under nance lease.

12 October AirAsia achieves 100% load factor for the inaugural Kuala LumpurLombok ight. 19 October AirAsia is named one of Malaysias Most Valuable Brands. 16 November Thai AirAsia launches inaugural ight from Bangkok to Xian, China. 27 November AirAsia is voted the Most Popular Graduate Employer in Leisure, Travel and Hospitality, at the Malaysias 100 Leading Graduate Employers 2012 Awards. 19 October Thai AirAsia launches its inaugural ight from Bangkok to Wuhan, China. 19 October Indonesia AirAsia celebrates its inaugural ight from Surabaya to Johor Bahru, with a load factor of more than 90%. 28 October AirAsia announces 800,000 free seats to selected domestic and international destinations. 9 November Indonesia AirAsia introduces celebrity chef Farah Quinn as the airlines in-ight meal ambassador. 13 December AirAsia ies Harimau Malaya supporters to Bangkok for the AFF Suzuki Cup Semi-Finals 2012. 13 December AirAsia conrms another 100 Airbus A320 order. British Prime Minister David Cameron witnesses the signing of documents by Tan Sri Dr. Tony Fernandes and Fabrice Brgier, President & CEO, Airbus. 17 December AirAsia Japan announces Yoshinori Odagiri as its new Chief Executive Officer. 17 December Indonesia AirAsia officially opens its sixth hub in Makassar.

1 October Thai AirAsia begins service at Don Mueang International Airport, Bangkok. 1 October AirAsia wins Best Low-Cost Airline award from Business Traveller Asia Pacic. 4 October Thai AirAsia launches inaugural ight from Bangkok to Mandalay, Myanmar. 8 October AirAsia wins its sixth TTG Best Asian Low-Cost Carrier award.

21 December AirAsia takes delivery of an Airbus A320 with Sharklet wingtips, making it the rst airline to operate an aircraft with the new fuel-saving device. 25 December AirAsia launches its inaugural Kota Kinabalu-Guangzhou ight.

10 October AirAsia Japan launches its rst international ights to Seoul and Busan, Korea.

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l a u n n A f o e g c n i i t t No ral Mee Gene

NOTICE IS HEREBY GIVEN THAT the Twentieth Annual General Meeting of AirAsia Berhad (284669-W) (AirAsia or the Company) will be held at AirAsia Academy, Lot PT25B, Jalan KLIA S5, Southern Support Zone, Kuala Lumpur International Airport, 64000 Sepang, Selangor Darul Ehsan, Malaysia on Tuesday, 4 June 2013 at 10.00 a.m. for the following purposes:AS ORDINARY BUSINESS 1. 2. 3. 4. 5. To receive and consider the Audited Financial Statements together with the Reports of the Directors and Auditors thereon for the nancial year ended 31 December 2012. To declare a Final Single Tier Dividend of 6 sen per ordinary share of RM0.10 for the nancial year ended 31 December 2012. To approve Directors Fees of RM1,818,410 for the nancial year ended 31 December 2012. To re-elect Dato Mohamed Khadar Bin Merican as a Director of the Company, who retires pursuant to Article 124 of the Companys Articles of Association. (a) To re-elect Dato Fam Lee Ee as a Director of the Company, who retires pursuant to Article 124 of the Companys Articles of Association; and (b) To consider and, if thought t, pass the following resolution: (Resolution 1) (Resolution 2) (Resolution 3) (Resolution 4) (Resolution 5) (Resolution 6)

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6. 7.

THAT subject to the passing of Ordinary Resolution 5, authority be and is hereby given to Dato Fam Lee Ee who has served as an Independent Non-Executive Director of the Company for a cumulative term of approximately nine years, to continue to serve as an Independent Non-Executive Director of the Company. To re-elect Cik Aireen Omar as a Director of the Company, who retires pursuant to Article 129 of the Companys Articles of Association. To re-appoint Messrs PricewaterhouseCoopers as Auditors of the Company and to authorise the Directors to x their remuneration. (Resolution 7) (Resolution 8)

as spEcial bUsinEss To consider and if thought t, to pass, with or without modications, the following Resolutions: 8. ORDINARY RESOLUTION AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965 THAT pursuant to Section 132D of the Companies Act, 1965 and subject to the approval of relevant authorities, the Directors be and are hereby empowered to issue shares in the Company from time to time and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem t provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the issued share capital of the Company for the time being and that the Directors be and also empowered to obtain approval for the listing of and quotation for the additional shares so issued on the Main Market of Bursa Malaysia Securities Berhad AND THAT such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company. 9. ORDINARY RESOLUTION PROPOSED RENEWAL OF EXISTING SHAREHOLDERS MANDATE and nEw sharEholdErs mandatE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE THAT approval be and is hereby given for the renewal of the existing shareholders mandate and new shareholders mandate for the Company to enter into recurrent related party transactions of a revenue or trading nature with the related parties (Recurrent Related Party Transactions) as set out in Section 2.3 of the Circular to Shareholders dated 13 May 2013 (the Circular), subject further to the following: (i) the Recurrent Related Party Transactions are entered into in the ordinary course of business which are necessary for the day-to-day operations and are on terms which are not more favourable to the related parties than those generally available to the public, and the Recurrent Related Party Transactions are undertaken on arms length basis and on normal commercial terms which are not to the detriment of the minority shareholders of the Company; the disclosure is made in the annual report of the breakdown of the aggregated value of the Recurrent Related Party Transactions conducted pursuant to the shareholders mandate during the nancial year, amongst others, based on the following information: (a) (b) the type of Recurrent Related Party Transactions made; and the names of the related parties involved in each type of the Recurrent Related Party Transaction made and their relationship with the Company; (Resolution 9)

(Resolution 10)

(ii)

(iii) the shareholders mandate is subject to annual renewal and this shareholders mandate shall only continue to be in full force until: (a) the conclusion of the next AGM of the Company following the AGM at which this shareholders mandate is approved, at which time it will lapse, unless by a resolution passed at the next AGM, such authority is renewed;

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g n i t f e o e Noticel General M Annua

(b) the expiration of the period within which the next AGM after the date is required to be held pursuant to Section 143(1) of the Companies Act, 1965 (Act) (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or (c) revoked or varied by resolution passed by the shareholders of the Company in a general meeting,

whichever is the earliest.

THAT the Directors of the Company and/or any one of them be and are hereby authorised to complete and do all such acts and things as they consider necessary or expedient in the best interest of the Company, including executing all such documents as may be required or necessary and with full powers to assent to any modications, variations and/or amendments as the Directors of the Company in their discretion deem t and expedient to give effect to the Recurrent Related Party Transactions contemplated and/or authorised by this Ordinary Resolution. AND THAT as the estimates given for the Recurrent Related Party Transactions specied in Section 2.3 of the Circular being provisional in nature, the Directors of the Company and/or any one of them be and are hereby authorised to agree to the actual amount or amounts thereof provided always that such amount or amounts comply with the procedures set out in Section 2.5 of the Circular.

OTHER ORDINARY BUSINESS 10. To transact any other business of which due notice shall have been given.

NOTICE OF DIVIDEND PAYMENT AND DIVIDEND ENTITLEMENT DATE NOTICE IS ALSO HEREBY GIVEN THAT, subject to the approval of the shareholders at the Twentieth Annual General Meeting of the Company to be held on Tuesday, 4 June 2013 at 10.00 a.m., a Final Single Tier Dividend of 6 sen per ordinary share of RM0.10 for the nancial year ended 31 December 2012 will be paid on Wednesday, 3 July 2013 to depositors whose names appear in the Record of Depositors on Tuesday, 4 June 2013. A depositor shall qualify for entitlement to the dividend only in respect of:(a) shares transferred into the Depositors Securities Account before 4.00 p.m. on Tuesday, 4 June 2013, in respect of ordinary transfers; and

(b) shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad. By Order of the Board JASMINDAR KAUR A/P SARBAN SINGH (MAICSA 7002687) Company Secretary Selangor Darul Ehsan 13 May 2013

NOTES ON APPOINTMENT OF PROXY a. Pursuant to the Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996 and Article 43(1) of the Companys Articles of Association, only those Foreigners (as dened in the Articles) who hold shares up to the current prescribed foreign ownership limit of 45.0% of the total issued and paid-up capital, on a rst-in-time basis based on the Record of Depositors to be used for the forthcoming Annual General Meeting, shall be entitled to vote. A proxy appointed by a Foreigner not entitled to vote, will similarly not be entitled to vote. Consequently, all such disenfranchised voting rights shall be automatically vested in the Chairman of the forthcoming Annual General Meeting.

As at the date of this Notice, no new shares in the Company were issued pursuant to the mandate granted to the Directors at the Nineteenth Annual General Meeting held on 21 June 2012 which will lapse at the conclusion of the Twentieth Annual General Meeting. The General Mandate, if granted, will enable the Company to fulll its obligations under the Companys Employees Share Option Scheme in an expedient manner as well as provide exibility to the Company for any future fund raising activities, including but not limited to further placing of shares for the purposes of funding future investment project(s), repayment of bank borrowing, working capital and/or acquisition(s) and thereby reducing administrative time and costs associated with the convening of additional shareholders meeting(s). Proposed renewal of existing shareholders mandate and new shareholders mandate for Recurrent Related Party Transactions of a revenue or trading nature (Resolution 10) Ordinary Resolution 10, if passed, will allow the Group to enter into Recurrent Related Party Transactions of a revenue or trading nature pursuant to the provisions of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (MMLR). Please refer to the Circular to Shareholders dated 13 May 2013 for further information.

b. A member must be registered in the Record of Depositors at 5.00 p.m. on 28 May 2013 (General Meeting Record of Depositors) in order to attend and vote at the Meeting. A depositor shall not be regarded as a Member entitled to attend the Meeting and to speak and vote thereat unless his name appears in the General Meeting Record of Depositors. Any changes in the entries on the Record of Depositors after the abovementioned date and time shall be disregarded in determining the rights of any person to attend and vote at the Meeting. c. A member entitled to attend and vote is entitled to appoint a proxy (or in the case of a corporation, to appoint a representative), to attend and vote in his stead. There shall be no restriction as to the qualication of the proxy(ies). d. The Proxy Form in the case of an individual shall be signed by the appointor or his attorney, and in the case of a corporation, either under its common seal or under the hand of an officer or attorney duly authorised. Where a member appoints two proxies, the appointment shall be invalid unless he species the proportion of his shareholdings to be represented by each proxy. Where a Member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple benecial owners in one securities account (omnibus account), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.

2.

3. Dato Fam Lee Ee has served the Board as an Independent Non-Executive Director of the Company for a cumulative term of approximately nine (9) years. The Board has recommended him to continue to act as an Independent Non-Executive Director based on the following justications: (a) He has fullled the criteria under the denition of Independent Director as stated in the MMLR, and thus, he would be able to function as a check and balance, bring an element of objectivity to the Board; (b) He has vast experience in a diverse range of businesses and legal matters and therefore would be able to provide constructive opinion; he exercises independent judgement and has the ability to act in the best interest of the Company; (c) He has devoted sufficient time and attention to his professional obligations for informed and balanced decision making; (d) He has continued to exercise his independence and due care during his tenure as an Independent Non-Executive Director of the Company and carried out his professional duties in the best interest of the Company and shareholders; and (e) He has shown great integrity of independence and had not enter into any related party transaction with the Company. 4. Mr. Conor Mc Carthy who retires pursuant to Article 124 of the Companys Articles of Association, will not be seeking for re-election at the forthcoming Annual General Meeting of the Company and therefore shall retire at the conclusion of the said Annual General Meeting. 5. Dato Leong Sonny @ Leong Khee Seong who is subject to re-appointment pursuant to Section 129 of the Companies Act, 1965, will not be seeking for re-appointment at the forthcoming Annual General Meeting of the Company and therefore shall retire at the conclusion of the said Annual General Meeting.

e. f.

g. The Proxy Form or other instruments of appointment shall not be treated as valid unless deposited at the Registered Office of the Company at B-13-15, Level 13, Menara Prima Tower B, Jalan PJU 1/39, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia not less than forty-eight (48) hours before the time set for holding the meeting. Faxed copies of the duly executed form of proxy are not acceptable. EXPLANATORY NOTES: 1. Authority to allot shares pursuant to Section 132D of the Companies Act, 1965 (Resolution 9) Ordinary Resolution 9 has been proposed for the purpose of renewing the general mandate for issuance of shares by the Company under Section 132D of the Companies Act, 1965 (hereinafter referred to as the General Mandate). Ordinary Resolution 9, if passed, will give the Directors of the Company authority to issue ordinary shares in the Company at their discretion without having to rst convene another General Meeting. The General Mandate will, unless revoked or varied by the Company in a General Meeting, expire at the conclusion of the next Annual General Meeting or the expiration of the period within which the next Annual General Meeting is required by law to be held, whichever is earlier.

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& l r a i a c d n n Fina stor Cale Inve

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, E L P E O SS , P R O U U CC E . E S C N R OU CELLE EX R U O

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a i s A r i A w e N d n e a Th Br
After 10 years, the AirAsia brand got brasher, bolder and, dare we say it, even more innovative. In May 2012, we rolled out a new corporate brand identity that is more contemporary and, betting our expansion, incorporates graphical elements inspired by Asia our new home. Our logo has been refreshed, our aircraft tail stamped with a more distinct design. Our brand mark has been lodged on a red circle, our AirAsia badge of honour. What it stands for is this: a Group that is not afraid of hard work because our blood, sweat and tears are mingled with lots of fun! We have battled the odds right from day one. Yet we have faced the challenges with an indefatigable can-do spirit, driving ourselves to attain what many thought was impossible. Its been a roller coaster ride, full of ups and downs and some intimidating twists. But we have enjoyed every single moment of it, and have taken great pleasure in proving ourselves. As we have grown bigger and better, and our systems more mature, we have retained our sense of sass and cool. Given the future we have charted for ourselves, we realise we will encounter many more obstacles. But we say: bring em on with 11 years of unmatchable experience, we know we have what it takes to make our dreams, and the dreams of our stakeholders, come true.

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in irudd ne a h K yo hmi Zulfa ng for onl ent, d a al mm aci Muha ad been r otted his t the i) h a sp m in (Fahm en AirAsi elded hi nship. d io wh year ed him an ld Champ thrill r o groom otoGP Wo gone on t hes at is s M 2010 hen, he ha tacular n . t ts ec Since s with sp cing even n a lr sia Malay ternationa in

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e t a r o p r o C rmation Info
bin l Aziz u d b @A l Aziz e d tive b A xecu E n Dato kar nt No Ba Abu ndepende -I des (Non an) ernan F m s r i i ) Cha ranc ndes ony F Tony Ferna h t n A ve Dr. ri Dr. n Sri ecuti Tan S known as Ta t Non-Ex ly den (wide epen d n I (Non r) to nun Direc Mera utive n i b ec in arud t Non-Ex m a K n Dato ndepende -I n o (N tor) Direc tive xecu thy E r a n C nt No r Mc Cono ndepende -I (Non r) to c Dire Board irE Of D ctors

Khee ong e L nny @ tor) g So n o Direc e L e v i o t Dat xecu g on-E n N o t e n S e pend r) (Inde irecto D e e v E i t Lee xecu Fam nt Non-E o t a an D Meric or) ende p n i e b d n r a (I ect Khad utive Dir d e am xec Moh on-E Dato endent N ha p ustap rector) M (Inde n i Di rb Oma xecutive d h on-E k Mo Datu endent N p tive (Inde xecu E d n ar er a Offic n Om Airee Executive f (Chie r) o t c Dire

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& s d r Awa lades 2012 Acco

ns elatio tor R s al e v n Annu for I econd ards CEO S , s e Best p 2012 w d a ernan ions A Mid C Dr. Tony F stor Relat l i i e r r v p S 2 n 4A ia In l 201 Tan alays d Asia siona aysia rofes IRA M r Mal nandes, 2n by P o M f s n O CE Fer ards elatio A Best n Aw . Tony tor R al MIR Inves 2 Sri Dr Recognitio Asia t n s a Annu ds e T y B r 1 d a e n e 0 c u c o 2 r n r n c b a e ap Se wa 13 Fe Excell ate Govern Mid C in Ismail, elations A for Year dustry pany or R am f the p r m y r o In o o n o t e e e C s C n n e B v ions Airli l Airli sia In Relat ards Value W Annua ds Malay n Aw estor T r v io A a n it I n er w h t t 38 12 nt A Bes ecog stom veme sia 20 cellence R ry Cu ia t y e s s a n l A u u a d J Achie e x M c In 8 sian E ernan Cargo 2nd A orate Gov st Air r ary ear e o u Y f r B e p r b r h e s e c of t sia 23 F by Co World ard 2012 CW) ns Offi ment Malay A Aw elatio hieve andes, 1st R ia e c s r c y A o n Care go Week ( l t la e s Ma ve ern idua xcell r E a C n est In 2012 Indiv Dr. Tony F ds 2012 by CA) ir ia B s A ri ar sia 2nd A orate n (MA Tan S ment Aw Malay in Ismail, s by Corp isatio n e a v m d g r a 2012 ie r a Ach nt O Beny ition Aw rline 5 July veme n ng Ai i g ie o m h ia r c c s o e A R eA erf rnanc Top-P Gove No. 1 n Week l i r io 2 Ap Aviat ) on i e s p e s r a m h l Cha in C op T Best ening ion (T e List g Champ n i l r i A in e Talk Airlin m o .c eezer 6 Jun e

12 er 20 Carri ds t s o r C Lowl Awa Asian TTG Trave Best l a Annu 23rd er temb ial c p e o S S 11 er in ate vemb oyer orpor Empl 2012 27 No gic C ional e t e t t u a a it r u t t S Grad ospitality ia Ins y Best st As lpha pular sibilit st Po avel and H Graduate spon al Southea ards by A & o e R 2 M 1 nnu e Aw er 20 ly re, Tr 0 Leading Carri 13 Ju 2nd A r Corporat Leisu 0 s 12 Cost 0 o 2 sias 1 12 Award t w y s a o i e la Inv Ma and 20 Asia est L rline - As s t B r s e a s y e ravel d i mplo Worl South ost A ne Survey ion, T E t C a t w r Lo po irli Best Trans ber orld A ples ax W ptem in the gory 2012 , The Peo Skytr e 12 Se Gold 12 t a 0 2 C s sm rd s& Value op 100 Touri rand Awa Brand ysia rand ly op 20 isers by B h Annual T utra B y 4As Mala 19 Ju T P & R b t rands r if Yea ear ble B es F hoice op 10 Y e c a T C h n u e t l a s h a f t t Fin of eo por ost V g Airlin st Airline Brand n Brands ia Air 30 M alays o ertisin sia sias C M y y a y la w l b a o a d Adv ith s L M M 2 e d 1 r it 0 a d 2 w Aw cre ds & KLIA Awar tion of Ac llaboration Year ctor ia o c tober of the ear By Se c o c l 2 e s in a 1 O s n u i ) 0 1 l A s r Y e2 Ann gn Ai ne of the ts (4A Airlin ics Forei Agen nd -Cost r Asia-Pac Airli w s n a o r d g L i r b velle Fore Best Asia KLIA Awa Inter East ss Tra , usine s South sia AirAsia s B d r a rt e l Aw Indon ysia Airpo Trave la a M y n of b ssma ober usine B 4 Oct l a tion ly f the terna CEO 23 Ju Edge as In Men o ding i e n d Q h a n T t I G s , , GQ des Out des sias ernan ernan ear Malay Dr. Tony F (BRC) the Y Dr. Tony F b ri ri 12 it Clu Tan S Tan S ds 20 Ringg Awar Billion Year er 012 temb ear 2 6 Sep the Y wards f o r arrie ad Asia A Star C ylo Rising Cargo, Pa ia s A ir A

ober 8 Oct

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illion er a B d n U Best Asias (2005) s e b rship For eade ost L egy C e g w i t o rest nal/L s Stra e s of P Regio e Busines 05) ation ministrativ d n n 0 i l e 2 r ( Year in Ai Business Comm Special Ad f the o e e u n PA) n li a i l c Air Ma t Air viation (CA 008) s 2 o ( s C n e ow ani cA Regio Paci cic L Comp sia Pa re for Asia ative v A o n n ent ost I ll the C e 8) 50 M orld (200 Airlin 2011) Overa W 4) t 0 m e s o h 0 o in the t 2 .c C ( in rds ( pany pany Lowa m t m w s o o A e C C s B line ector Fast ged tion World World Air Mana Aviation S netra t e s P e t x B a d ke er Skytr Year es an 4) e Mar Carri Airlin ney (200 lace) Airlin ship of the 08) -Cost 11) w o o (3rd P L 0 r m 2 e y o 0 n ( r n d a 2 i u a a ( n s e E a p s A L iv d om Best Awar & Sull ted C Year ravel Frost Asia ly Lis 4) & f the n w o e i e c e e TTG T a N n n i p irl 8) (200 Airli Best eros (200 alue A dget oney ic A st Bu elAsia.com urom cic V Asia Pac e a E B P a i As ivan ip tTrav 04) 2011) & Sull dersh Smar 08) t Lea World (20 Frost e Awards ( e e (20 k n r li r a ir e t M s A r e m n o t n o i e s p l f c r s o C Ai ) De an ar New LowAir Tr (2010 -Cost he Ye Best World e of t t Low e Awards s n ie i e l r g r B i e d i n A u r s li B c Car World World Air Paci sia Pacic Cost Asia ) ax Lown the rA i n o f s a i e Skytr e s (2003 r n Airli est A Cent n (CAPA) B y 0 ) r 1 8 o p 0 g to io te 20 Year Aviat f the ge ca TTG ( f the One o ger Carria up (CAG) Most ine o l e r i h ) t A 3 o n d r g g re 200 Passe Airport G lopin amon Admi c region rnal ( 008) Deve gi Top 5 ised and e Jou vey (2 aci c r P n u Chan a n s a i n g s Air e As and ) Reco 00 Br (2010 s in th arrier irline ic Top 1,0 ost C A s C w Lo ac for a arket M Asian 2010) Asia Asia P n Asi 2007) l i a e t n i i r for Best l ( ( a r p i l s s e e A a a Y d v r t ib a e m a C s r Par uris of th e Aw w-Co TTG T an To h BNP Deal st Lo orld Airlin w it t i e a b w B T e ft D cing n to ax W Aircra cked nan A) 010) ibutio Skytr (CAP a Contr Tourism (2 b n r a io A t e Y EC n via X ic A of the r ) Taiwa iation rAsia irline r Asia Pac e Yea (2010 r Ai Pacic Av A a e Y o l of th ncing f e ia a h e s t e r t A f D n bt eo for na Ce ft De Airlin X Centre ked ) Aircra r ECA bac al (2009) ia ne (2007 i l r i ) 9 A it o AirAs f 00 get Cap 6) Asia A) (2 t Bud (200 clays irline (CAP s Bes lAsia.com h Bar 009) ost A a it i 2 C s w ( A s w Deal rave t Lo nce ward Loan martT s Bes xcelle artered line A c S d i E ir l r f m A o o a W Isl ) orld any ysia e Ch Best 2009 ax W Comp hd and th sport Mala er sset ( Skytr A port B Carri n s e a n t n r h s d a T T r o S T C nd LowWorld tics a Asian Ports e of Logis Best t ) u 2009 Instit Year TTG ( f the l 005) o 2 ( r e i iona Carr ernat Cost Low- umpur Int ) 8 L 00 Kuala (KLIA) (2 rt Airpo

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for rvice ce Se n e l l e l Exc pur ory tiona Voca ate Categ Kuala Lum Jaya r f g o o n p a b r b Co Clu Su ce otary Utara ernan The R itiwangsa v o s G T panie ia West orate g Com alays p n i r M g r n o i C te ny Eme ompa Best to Corpora sias lamic ged C A s s a I d n r g a a n M reg ndi Best m Cap) with utsta 007) e diu ost O duct 11) rnanc agazine (2 ) e M e 0 9 v M 2 e ( 0 ( o h 0 G T ro (2 oney sset m cial P ance p) Asiam The A Finan lamic Fin id Ca , Malaysia M g ( Is R des for I KLIFF rketin a ernan s (2011) CEO ia F M t s s y A e n ) & n B d To ls i 008 ng Awar ri Dr. sia (2 0 Dea randi Tan S r Relations ion, B Top 1 Finance A ) r o p a t ortat e ic Inves id Ca tor ransp ategory the Y M T Islam f ( e l o h s a l e ea in t mc Inve ssion 11), Th ouris Gold sing D Profe il, Malaysia and T wards (20 ft Lea l 08) st IR a e a r e 0 v c 2 m a B r ( i r ) A Is T A nce (2011 amin Brand ice t Fina Beny ns Awards Putra Asia ho nspor C a r io s T t r le d Rela ap) Yea Peop Janes ards r Bran f the Mid C eal o 2008) ploye yer Brand site ( lations Aw D b m r e E e t W ( d IR Bes r Re Bor ews mplo Best vesto Asias ias Best E Cross Finance N ysia In s la ic A a m ) d M ns 2n Isla 011) ) elatio Year ds (2 (2011 stor R sian Awar of the ws (2008) e l v a paign n I e s Asia ( D e g Cam st Airline CEO des, A a n i t i n Ijarah Finance N t s s a e e A n o k r B C e l in Mar ic LowAsias Dr. Tony F porate Best 0 Dea ards Islam World Top 1 n Aw Sri Cor ie io 1 n ) g 1 it s a 8 d 0 r n T u 0 2 e ) g B 10 ak 20 ence Reco c (20 ews ( vel ndbre Excell ance Asia Paci Grou Finance N n, Tra ny) a r p n r a m e e rtatio ic v o Y o o C m e p ( G s h la s t n Is a of tion te for Tr Deal rpora s r Rela Gold 010) vative al (2008) sm vesto ce 2011 Co ion Award i o r n n I u n t o I rds (2 s T a t n e it n r s d w n e B u o n ll g A o a e M J t Exc Reco Brand ance r Bes l Asian ance Asia Putra AirFin ard fo siona n s w r e A e f l v o Go s Pr iona lation llence A Reg or Re sian Exce ia t 04) Triple IPO s 0 e 2 v ( n A I e , As t il e in s e a z n Be aga Airli rnanc in Ism sset m nyam orate Gove A e e B h T orp rds Year 2011 C ition Awa 004) f the 2 o ( n g e O r o P o I Rec Best ge Singap d The E

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Awards Past

ajesty r of t ande Her M m y b m s Co de ernan re ng & Empi Dr. Tony F randi ce B n i i r II ellen lence Tan S Elizabeth Excel eneur Exc 2010) en ership e r ( u p s Q e d r r Year l Lead a a e w b Ent h t A lo O of Asia es, G ry CE nand CMO siona . Tony Fer OY) i r A V ( a e r Y Yea ri Dr 1) of the f the Japan Tan S 1 Brand Agency o le for iness s (20 p d r o a e s Aw tial P ikkei Bus Media (2009) uen N ds ost In rnandes, M Awar 0 e 0 r Top 1 Dr. Tony F a e Y ) ri of the 2009 Tan S 2011) Brand agazine ( zine ( a g l M a M ia d e Trave ders M o s Lea ndes, Asia nds g s r a e r a n B C i 00 for ) l Bus erna Top 1 t irline 2006 Trave Dr. Tony F la (2011) Cargo ign A nal Airpor Asias agazine ( e i r r Ga o S it F M itter Tan atio mm ing Media on Tw any.com Grow Intern ers Su ds ) t e d l n n s 3 a u a p e 0 r e t o iy 0 s b L Fa per e Pe Comp u Ba al (2 gzho reativ ndes, Fast ian Su ternation n s C a y t u a s l G Ma ds In erna 0 Mo ) re rbran The 1 Dr. Tony F ns (2011 o Supe er Ca i i t r m S o a t n s c Ta t Cu rging muni Eme s Bes ek (2011) 11) m n d i 0 l o r 2 r ( o a C W , We er he Ye Carri argo ation r of t ng Air C Cargo eneu r t p s Innov hnology & You e o r Ent 11) ow-C Ernst 1) 0 L c e 2 y t ( h e r s T s o e T B Asia & ar thy, (201 ward categ Asias n Awards he Ye c Car Year tion A r of t ) io nor M eur of the over e t ITova o L m ia C r W v o e ) c A m IT 010 ew pren Custo Travel (W ds (2 try N Entre Indus argo Awar In o g r a Web ir C Air C ) orld A ward (2011 CW W ence novation A i A r e p ia Ex ervice In l Med S al Socia Customer list Capit a r Fina ry n o a g e Eptic t m ploye mployers a u c m r E H o ) ate eE Sect (2011 Gradu aduat nd ivate pular eading Gr itality he Pr hnology a o t P n i t s sp 0L Mo l ICT 10) n Tec l & Ho ias 10 Globa formatio ITSA) (20 alays ure, Trave M In W ( ld r is e nc Le Wo 2011, e Allia Servic ce n e l l e xc gy ctor E Technolo ) n te Se A io S t a IT Priva m W Infor nce ( ld ia r ll o A W s ervice and S ) (2010 ting Marke and

h Searc rds igital a D w f A o edia Use Best alaysian M M Gold ce ) cellen (2010 on Ex i t a s i n Orga ) M ICT PIKO ICT (2008 M O IK P es onore IT 00 H ic 1 g p e t o CIO T nce in Stra ) 3 e ll 0 e ping 0 c Ex t (2 Shop ymen nline O r o Deplo ite f Webs ) pular ult (2003 o P t Mos Cons n e ls ACNie

a Capit uman (2007) H e n i Airl ivan & Sull Frost

elopm l Dev

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Britis

ia ity As sonal r e P nd te Bra ) aurea 2007 L d n tion ( a d Bra n Fou c Paci cic Brand a Year P e ion h ia t As of ognit l Rec 2007) nality a o i s c r e e p ( P S ds ravel ) ter s Awar ary Minis TTG T vel (2009 ourism empl T x a r E h T r a fo Sab TTG Year ur ership f the Forum Lead prene preneur o omic n e i r n t o e n c c rE tre eE len y Maste Young En hines Excel ship Skills 09) rateg f 0 r & ian St of orld C evement 2 s o e t ( l ) s W d A Year l n 6 a , n a d r s e a 0 r E L 3 (20 Achi Fernande of the ition Sulliv tion H n ia e e a s i g & v i y m v o t i t t c s A la 5) Ma Fro Life xecu PAs Tony in Re (200 ion E d CA itute ri Dr. Aviat c Aviation 9) Tan S ership Inst avel nd an c 0 e 0 i g 2 c e L Tr Pa n( d aci Asia CAPA viatio & Lea ship in Air ive of r Asia P xecut r e Yea cic A re of e E e a h t t d n P n m f a e o a e o i ia C F t s L ard EO ars via e of A bal C ic A ip Aw 10 Ye l Affairs Centr 04) Next a ss Glo s Leadersh ia Pac s a n e l A h c io n (20 r t T A e a io s P n t r e s A ia r e in C t v e Mast s In Asia Lead cic A ear sia Bu te of AXN the Y of Asia Pa Rising ore Institu Malay ) (2010) n with io e p t r A a a t isting L r Cen Sing (MB rees l ollabo o c n o in ar ia H (SIA) Prize he Ye of As 2004) i Asia 10) n of t 08) Stars o k( 0 5 c e 2 I 2 0 ( e Nikke 2 d Bran ess W eur i Inc ( l n in e a ) n s k b 8 o u ik o 0 H B N press (20 n Gl n d an Ex laysia nd Forum ar ic Legio e (2010) a e r Y e e M h e m t dA l Bra of th on ear ranc er of es an CEO ovati Globa the Y Offic ment of F ss Tim ss Inn ty of e i n e l ) r in n a 8 e i s n v s 0 Bu Go 20 rso ) f Bu ) zine ( sm Pe (2010 ate o (2003 Touri ravel Maga rism octor i Malaysia u D o y T r a a T g i r s r o lo y u n o a l Lib Ho ekn Ma rsiti T rs of ard Unive irecto m Aw 2010) D u f n o i t la ( Board ion Board 008) eas P laysia (2 ot Overs tion of Ma r a Prom e SME laysia Y m Ma ssocia f the is o A r I u n o M a T S ssm usine ias B ) s A s Air Forbe Asia (2010 rcial s mme o Forbe C e th ard in te Aw gory a e r u La cate port 009) Trans n Week (2 io Aviat

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s t h g i l h g i H a i Med 2 1 0 2 in

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p u o r G s r t a h e g Y i l e h v g i i F H l a i c n Fina
PErF OR E REV MANC
(RM million, unless otherwise stated)

2008

For the year ended 31 December 2009 2010 2011

2012

Revenue 2,855 3,133 3,948 4,495 4,946 Net total expenses 3,207 2,220 2,881 3,332 3,917 EBIT -352 913 1,067 1,163 1,029 Share of results of associates - - - -6 1 Share of results of jointly-controlled entities 12 -3 Prot before taxation -869 622 1,099 777 2,004 Taxation 373 -116 -38 -222 -173 Net prot -496 506 1,061 555 1,831 BALANCE SHEET Deposits, cash and bank balances 154 746 1,505 2,105 2,233 Total assets 9,406 11,398 13,240 13,906 16,745 Net debt (total debt - total cash) 6,453 6,862 6,352 5,676 6,176 Shareholders equity 1,606 2,621 3,641 4,036 5,902 CASH FLOW STATEMENTS Cash ow from operating activities -416 784 1,594 1,404 1,355 Cash ow from investing activities -2,602 -1,777 -1,868 -487 -1,936 2,749 1,591 1,031 -300 733 Cash ow from nancing activities Net cash ow -269 598 757 617 152 CONSOLIDATED FINANCIAL PERFORMANCE (%) Return on total assets 4.4 8.0 4.0 10.9 Return on shareholders equity 19.3 29.1 13.8 31.0 9.6 10.7 12.0 8.5 R.O.C.E. (EBIT/(net debt + equity)) EBIT prot margin 29.1 27.0 25.9 20.8 Net prot margin 16.2 26.9 12.3 37.0 CONSOLIDATED OPERATING STATISTICS Passengers carried 11,808,058 14,253,244 16,054,738 17,986,558 19,678,576 Capacity 15,660,228 19,016,280 20,616,120 22,474,620 24,751,800 Load factor (%) 75 75 78 80 80 14,439 16,890 18,499 21,037 22,731 RPK (million) ASK (million) 19,217 22,159 24,362 26,074 28,379 Aircraft utilisation (hours per day) 11.8 12.0 12.2 12.3 12.3 Average fare (RM) 204 168 177 176 187 Yield Revenue per ASK (sen) 14.9 14.1 16.2 17.2 17.4 Cost per ASK (sen) 16.7 10.0 11.8 12.8 13.8 Cost per ASK - excluding fuel (sen) 9.5 5.8 6.9 6.0 7.6 Yield Revenue per ASK (USc) 4.45 4.02 5.03 5.63 5.66 Cost per ASK (USc) 5.00 2.85 3.67 4.18 4.48 Cost per ASK - excluding fuel (USc) 2.83 1.66 2.13 1.97 2.47 Number of stages 89,118 105,646 114,534 124,853 137,510 Average stage length (km) 1,207 1,166 1,184 1,162 1,148 Size of eet at year end (Malaysia) 44 48 53 57 64 Size of eet at year end (Group) 78 84 90 97 118 Number of employees at year end 3,799 4,597 4,702 5,137 5,644 Percentage revenue via internet (%) 70 76 77 78 79 RM-USD average exchange rate 3.34 3.52 3.22 3.06 3.08

l a i c n a n i F s t h g i l h g Hi
RM m illion RM m illion

2012

946 , 4 M R
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2012

04 0 , 2 RM
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RM m

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RM m

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2012

45 7 , 6 1 RM
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2012

5,9 RM llion
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m

02

43

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Ia BE EP aL R ANNU

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g n i t a r e p O s t h g i l h g Hi
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2011

17.4
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2012
2011

576 , 8 7 6 19,
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2011

118
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2011

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Mont 2012 ading hly Tr Vo

DED E TRA OLUM are Price V & CE t Sh E PRI owes SHAR Highest-L & lume

1,600 202,88 ,800 2 7 ,3 2.68 3 00 15 2.88 2.38 9,485,6 15 Jul 0 0 2.97 2.66 4,739,1 Jun 0 46 ,257,80 3.29 2.84 8 6 May 00 3.53 2.68 ,280,4 Apr 0 94 ,693,20 3.59 3.24 4 13 Mar 28,000 3.48 3.36 Feb 131,5 77,700 .43 3.30 ,8 3 8 8 Jan 14,700 3.29 3.14 159,5 21,000 .48 3.11 ,3 3 7 8 11 00 olume 3.55 3.15 116,147,7 Total V 8 7 ) .4 0 3 0 0 ( 3.3 t (RM) 3.34 Highes ) t (RM Lowes Aug Sep

Oct

Nov

Dec

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s, stripe as r e h d e earne sten in aw en e h s l i i l Unt only t ying. Th d l u co et ou Ilyana spoke ab e pilot cad , sia ad th her d mpleted t AirA e a e o m she c program in, just lik h a ta ng traini now a Cap in Nazli Sh a h s and i Both Capt Nazli Sha . a d t n a a h her d aptain Ily pecial ig e C s m and on a ur Pri g o w e d e even that carri ft bearin her ircra toget r on our a livery. ia te Minis e 1Malays h t

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U IN AB ZIZ B an t: A f L le DU m From @ AB tive Chair AZIZ cu e L x E E D AB t Non DATO ependen d Es In r n No irecto FErnand ive D Y t u c on e T x . E r sri D dent Non Tan n epen d ranU In r Non in ME ive Directo B Udin Execut Kamar t NonDato ependen Ind ctor NonY e Dire ARTH n-Executiv C C RM t No CONO ependen d In G n No SEON ctor KHEE utive Dire G N c O e E x L -E DATO dent Non en Indep

BAKA

ector EE EE ecutive Dir L M FA N -Ex RICA DATO dent Non IN ME en B p e R d A In AD tor D KH Direc HAME Executive O M DATO dent Non APHA en MUST tor N Indep I B AR irec ive D D OM MOH on-Execut K U T DA nt N r ende irecto Indep ive D t u c e Ex AR and N OM fficer AIREE xecutive O E Chief

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Dato Abdel Aziz @ Abdul Aziz Bin Abu Bakar, Malaysian, aged 60, was appointed as a Non-Executive Director of the Company on 20 April 2005 and on 16 June 2008, he was re-designated to Non-Executive Chairman. He is also a member of the Nomination Committee. Prior to this, he served as an Alternate Director of the Company to Dato Pahamin Ab. Rajab since 11 October 2004. He also served earlier as a Director of the Company from 12 December 2001 to 11 October 2004. He is currently the Non-Executive Chairman of VDSL Network Sdn Bhd. He was the Chairman of PRISM (Performance and Artistes Rights Malaysia Sdn Bhd), a collection society for performers of recorded music, for 11 years from 2001 to 2012. He served as Chairman of PAIMM (Academy of Malaysian Music Industry Association) for more than 10 years until January 2011. From 1981 to 1983 he was Executive Director of Showmasters (M) Sdn Bhd, an artiste management and concert promotion company. He subsequently joined BMG Music and was General Manager from 1989 to 1997 and Managing Director from 1997 to 1999. He received a Diploma in Agriculture from Universiti Pertanian Malaysia in 1975, a B.Sc. in Agriculture Business from Louisiana State University, USA in 1978, and an M.B.A. from the University of Dallas, USA in 1980.

BDUL A @ Z L AZI AKAR E D B A UB tive DATO IZ BIN ABNon-Execu AZ pendent

NonInde Chair man

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Tan Sri Dr. Tony Fernandes CBE, Malaysian, aged 49, was appointed Group Chief Executive Officer of the Company in December 2001 and re-designated as a Non-Independent Non-Executive Director of the Company on 30 June 2012. He is also a member of the Employee Share Option Scheme of the Board. He was Financial Controller at Virgin Communications London (1987 1989), and moved on to be Senior Financial Analyst at Warner Music International London (1989 1992), Managing Director at Warner Director at Warner Music Malaysia (1992 1996), Regional Managing Director, ASEAN (1996 1999) and Vice President, ASEAN at Warner Music South East Asia (1999 2001). He was admitted as an Associate Member of the Association of Chartered Certied Accountants in 1991, and became a Fellow Member in 1996. In 1999, DYMM Sultan Selangor Sultan Salahuddin Abdul Aziz Shah bestowed on him the title Setia Mahkota Selangor for his contributions to the Malaysian music industry. He was the recipient of the Recording Industry Person of the Year 1997 by the Recording Industry Association of Malaysia. With AirAsia, he received accolades from international press and industry observers such as Airline Business Strategy Award 2005 and Low Cost Leadership by Airline Business and Asia Pacic Aviation Executive by the Centre for Asia Pacic Aviation (CAPA) for the years 2004 and 2005. In July 2005, he was conferred the Darjah Datuk Paduka Tuanku Jaafar (DPTJ) which carries the title Dato by Negeri Sembilans Yang DiPertuan Besar Tuanku Jaafar Tuanku Abdul, for his services rendered to the betterment of the nation and community. In 2006 and 2007, he bagged The Brand Laureate Brand Personality for his exemplary performance, dedication and contribution towards the aviation industry in Malaysia. In 2007, he was bestowed the Darjah Sultan Ahmad Shah Pahang (DSAP) which carries the title Dato by Pahangs KDYMM Sultan Haji Ahmad Shah ibni Almarhum Sultan Sir Abu Bakar Riayatuddin AlMuadzam Shah for his services rendered to the betterment of the nation and community. In 2008, he was again honoured by the Sultan with the Darjah Kebesaran Sultan Ahmad Shah Pahang Yang Amat Di Mulia which carries the title Dato Sri. The CAPA Legend Award 2009 (Aviation Hall of Fame) recognised his inuential actions in directly shaping the way the aviation industry has evolved, and the Airline CEO of the Year Award for 2009 from Janes Transport Finance was for his success in leading and growing AirAsia into the worlds best low-cost airline and Asias largest. He received an Honorary Doctorate of Business Innovation from Universiti Teknologi Malaysia (UTM) in March 2010 for his role in changing the face of aviation and beneting travellers and economies locally and in the region. He was honoured with the title of Officier of the Legion d Honneur by the Government of France in April 2010, for outstanding contributions to the French aviation industry. It is the highest rank of honour that the Government of France can award to a non-French citizen. In May 2010, Tan Sri Tony was awarded the prestigious Nikkei Asia Prize in Tokyo for his contributions to the growth of Asia. The prize, given by leading Japanese newspaper publisher Nikkei Inc., recognises Tan Sri Tonys role in democratising travel in Asia. He was also the proud recipient of the Masterclass Global CEO of the Year award at the 2nd Malaysia Business Leadership Award (MBLA) 2010 ceremony for his immense contributions to the countrys economy. Tan Sri Tony was also awarded the prestigious Forbes Asia Businessman of the Year 2010, the rst Malaysian and Southeast Asian to receive the award. This was based on his democratising air travel in the region and growing a Malaysian company into a highly successful global brand. In February 2011, Tan Sri Tony was awarded the Commander of the Order of the British Empire (CBE) honour by Her Majesty Queen Elizabeth II for services to promote commercial and educational links between the United Kingdom and Malaysia. Tan Sri Tony obtained another award which carries the title Dato Seri in conjunction with the Sultan of Perak Sultan Azlan Shahs 83rd birthday. The award was the Darjah Seri Paduka Mahkota Perak, conferred at a ceremony at the Istana Iskandariah in Kuala Kangsar, Perak, Malaysia. In 2011, Tan Sri Tony was named one of the most creative people in business by New York-based business magazine Fast Company in its June 2011 edition. Tan Sri Tony is the only Malaysian and Southeast Asian on the list. He was also on the Top 10 most creative people in Twitter from the same list. Tan Sri Tony received one of the countrys highest honour from the former King, Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin, who awarded him with the Panglima Setia Mahkota (PSM) which carries the title Tan Sri, in conjunction with the Kings birthday. The Panglima Setia Mahkota is conferred only by the Yang di-Pertuan Agong and is only given to distinguished citizens who have given meritorious service to the country. There are only 250 recipients of the title at any given time. Tan Sri Tony continues to make waves throughout the region as he was awarded the 2nd Asian Corporate Director Recognition award by Corporate Governance Asia which recognises his contributions in enhancing business ethics, transparency and corporate social responsibility on the foundation of his success for running of the airline business. In September 2011, Tan Sri Tony was named CEO of the Year at the 5th Annual Budgies World Low Cost Airline Awards held in London. When CNBC held its rst Travel Business Leaders Award Asia Pacic in Singapore in 2011, it named Tan Sri Tony as the inaugural CNBC Travel Business Leader of 2011. In February 2012, he was bestowed with the Individual Achievement of the Year award at the 1st Malaysia Achievement Awards 2012, organised by the Malaysia Achievement Organisation (MACA). Following that, in April, Tan Sri Tonys ne contribution to the aviation industry was once again recognised by Corporate Governance Asia, this time as Best CEO for Malaysia at the 2nd Asian Excellence Recognition Awards. Tan Sri Tony was honoured with the Best CEO for IR Mid Cap award in June, by the Malaysian Investor Relations Association Berhad (MIRA) at the associations Second Annual MIRA Malaysia Investor Relations Awards Ceremony. In July, he was named as one of Malaysias outstanding CEOs by The Edge Billion Ringgit Club (BRC), for taking AirAsia the extra mile in the aviation industry. Tan Sri Tony continued to establish his international acclaim after being announced as GQ Indias International Businessman of the Year in October at GQ Men of the Year Awards 2012 in Mumbai. In March 2013, Tan Sri Tony won Corporate Governance Asias Best CEO for Malaysia award for the third time in a row-presented at the 3rd Asian Excellence Recognition Awards 2013 ceremony held in Hong Kong. He is an Independent Non-Executive Director of Star Publications (Malaysia) Berhad and NonIndependent Non-Executive Director of both Tune Ins Holdings Berhad and AirAsia X Berhad.

Tan sri Non-Indtive Directo

NonExecu

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Dato Kamarudin Meranun, Malaysian, aged 51, was appointed Director of the Company on 12 December 2001. In January 2004, he was appointed Executive Director and on 8 December 2005, he was re-designated to Group Deputy Chief Executive Officer. In 2012, Dato Kamarudin was re-designated as Deputy Group Chief Executive Officer & President of Group Finance, Treasury, Corporate Finance and Legal, effective from 13 February. Thereafter, he was redesignated as a Non-Independent Non-Executive Director of the Company on 30 June 2012. He is also the Chairman of the Employee Share Option Scheme Committee of the Board. Prior to joining the Company, he worked in Arab-Malaysian Merchant Bank from 1988 to 1993 as a Portfolio Manager, managing both institutional and high net-worth individual clients investment funds. In 1994, he was appointed Executive Director of Innosabah Capital Management Sdn Bhd, a subsidiary of Innosabah Securities Sdn Bhd. He subsequently acquired the shares of the joint venture partner of Innosabah Capital Management Sdn Bhd, which was later renamed Intrinsic Capital Management Sdn Bhd. Dato Kamarudin received a Diploma in Actuarial Science from University Technology MARA (UiTM) and was named the Best Actuarial Student by the Life Insurance Institute of Malaysia in 1983. He received a B.Sc. with Distinction (Magna Cum Laude) majoring in Finance in 1986, and an M.B.A. in 1987 from Central Michigan University. He is a Non-Independent Non-Executive Director of both Tune Ins Holdings Berhad and AirAsia X Berhad.

Kamarudin Dato Meranun nt ende

Bin

tor Indep Non- utive Direc Exec Non-

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ive xecut Director E f e i Ch tive Execu

R OMA er and N E E c AIR Offi

Aireen, Malaysian, aged 39, was appointed Chief Executive Officer and Executive Director of AirAsia Berhad effective from 1 July 2012. Prior to this, she was Regional Head of Corporate Finance, Treasury and Investor Relations at AirAsia. Aireen joined AirAsia in January 2006 as Director of Corporate Finance whereupon her portfolio quickly expanded to include Treasury, Fuel Procurement and Investor Relations functions. Aireen was an integral member of AirAsias leadership team under Tan Sri Dr. Tony Fernandes and Dato Kamarudin Meranun in mapping out the Companys growth plans and implementing the strategy that helped AirAsia maintain its trajectory despite increased competition in the Asean skies. She has played a critical role in AirAsias transformation into the biggest low-cost airline in Asia. Despite taking on Treasury functions in 2009, at the peak of the global

nancial crisis when credit lines were dry and markets volatile, she managed to raise funds for further growth of the entire AirAsia Group, facilitating both eet expansion and the setting up of various joint ventures. She was a catalyst in innovating nancing structures such as the Islamic French Single Investor Ijarah, which earned AirAsia global recognition for its leadership in the nance world. She also played an instrumental role in leading the team responsible for the equity private placement that raised more than half a billion ringgit in 2009. Aireen is further credited for locking in nancing at very competitive rates for the purchase of aircraft for AirAsia Group. This particular contribution allowed AirAsia to pull well ahead of competitors and reinforce its strategic advantage. Later, she was part of the team that negotiated the purchase of 200 Airbus A320neo aircraft from Airbus which was announced at the Paris Airshow in 2011.

Under her leadership, too, Investor Relations was restructured to facilitate greater transparency and improved engagement with the investment community. Before joining AirAsia, Aireen worked for nine years in the nancial industry, beginning her career at Deutsche Bank Securities Inc, where she was an Associate from 19972000 in New York and London, her last position being at the Equity Arbitrage Proprietary Trading Desk focusing on international equities, equity derivatives and equity-linked products. Upon returning to Malaysia in 2001, she worked in several major local nancial institutions, including Maybank Group. Aireen holds an Economics degree from the London School of Economics and Political Science, and an M.A. in Economics from New York University.

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Conor Mc Carthy, Irish, aged 51, was appointed Non-Executive Director of the Company on 21 June 2004. He heads the Safety Review Board of the Company and is also a member of the Safety Review Board of AirAsia X Berhad. He is the Managing Director of PlaneConsult, a leading aviation business solutions provider which he set up in 2000. Prior to establishing PlaneConsult, Conor was the Director of Group Operations at Ryanair from 1996 to

2000. Before joining Ryanair, he was the CEO of Aer Lingus Commuter. Prior to that, he was General Manager/SVP for Aer Lingus in the Marketing and Strategic Planning divisions. He spent 18 years with Aer Lingus in all areas of the airline business from Engineering, Operations and Maintenance to Commercial Planning, Marketing and Route Economics to Finance, Strategic Management, Fleet Planning and

General Management. He is a qualied Avionics Engineer and holds a First Class Honours degree in Engineering from Trinity College Dublin. Conor is currently the Chairman of Dublin Aerospace, an MRO based in Ireland, and also a Non-Executive Director of Pegasus Airlines in Turkey.

R den epen ector CONO d n I n ir

D No cutive e x E Non

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G SEON E E tor c H e GK e Dir

Dato Leong Khee Seong, Malaysian, aged 74, was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is Chairman of the Audit Committee and a member of the Remuneration Committee of the Board. He was Deputy Minister of Primary Industries from 1974 to 1978, Minister of Primary Industries from 1978 to 1986 and a Member of Parliament from 1974 to 1990. Prior to this, he was a substantial shareholder of his familys private limited companies, which were principally involved in general trading. He was the Chairman of the General Agreement on Tariffs and Trades Negotiating Committee on Tropical Products (1986 to 1990) and was the Chairman of the Group of 14 on ASEAN Economic Cooperation and Integration (1986 to 1987). He graduated with a degree in Chemical Engineering in 1964 from the University of New South Wales, Australia. He is an Independent Non-Executive Director of TSH Resources Berhad and Industrial and Commercial Bank of China (Malaysia) Berhad. Dato Leong is also the First Chancellor of HELP University.

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Dato Fam Lee Ee, Malaysian, aged 52, was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is also a member of the Audit, Remuneration and Nomination Committees of the Board. He received his B.A. (Hons) from the University of Malaya in 1986 and an L.L.B. (Hons) from the University of Liverpool, England in 1989. He obtained his Certicate of Legal Practice in 1990 and has been practising law since 1991 and is currently a senior partner at Messrs YF Chun, Fam & Yeo. Dato Fam also serves as a Non-Independent Non-Executive Director of AirAsia X Berhad.

Indep

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Dato Mohamed Khadar Bin Merican, Malaysian, aged 57, was appointed an Independent Non-Executive Director of the Company on 10 September 2007. He is also the Chairman of the Nomination Committee, a member of the Safety Review Board and Audit Committee of the Board. He has had more than 30 years experience in nancial and general management. He has been an auditor and a management consultant with an international accounting rm, before joining a nancial services group in 1986. Between 1988 and April, 2003, Dato Khadar held several senior management positions in Pernas International Holdings Berhad (now known as Tradewinds Corporation Berhad), a company listed on the Main Market of Bursa Malaysia Securities Berhad, including as President and Chief Operating Officer. He is a member of both the Institute of Chartered Accountants in England and Wales and the Malaysian Institute of Accountants. He is also presently a Director of Rashid Hussain Berhad (In Members Voluntary Liquidation), RHB Capital Berhad, RHB Bank Berhad, RHB Investment Berhad (formerly known as RHB Sakura Merchant Bankers Berhad), Astro Malaysia Holding Berhad and Sona Petroleum Berhad (formerly known as Titanium Windfall Sdn Bhd).

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Datuk Mohd Omar Bin Mustapha, Malaysian, aged 41, was appointed as an Independent Non-Executive Director of the Company on 16 March 2011. He is Chairman of the Remuneration Committee and a member of the Nomination Committee of the Board. He co-founded Ethos & Company in June 2002. He led Ethos as Managing Partner from 2002 to 2010, and became Chairman of the rm in January 2011. As Chairman, he provides overall stewardship for the partnership group and associates, and guides the thought leadership and client development agenda of the rm. In 2004, he took a sabbatical from Ethos to serve as Special Assistant to Deputy Prime Minister Dato Sri Najib Tun Razak for economic, corporate sector and foreign policy issues. He re-joined Ethos as Managing Partner in 2006 upon the untimely passing of his partner and co-founder Dr.

Liew Boon Horng. In 2007, he cofounded Ethos Capital, a Malaysian based private equity rm focused on providing equity capital and management support to growth companies in Southeast Asia. Ethos Capitals maiden fund is in excess of RM200 million. He has signicant experience in the Malaysian and international corporate and government sectors, where he has engaged with and advised top-level decision-makers on issues of business strategy, public policy and regulatory engagement, corporate governance and leadership, performance and talent management. Prior to establishing Ethos, he was a consultant with McKinsey & Company based in Kuala Lumpur and London. He has served multinational clients in the telecoms, energy, media, retail, banking and government sectors in Southeast Asia, the Middle East and Western Europe. He started his career as a

Corporate Planning Manager with Petronas and subsequently as a Vice President with the Multimedia Development Corporation. He was a member of the National Economic Council chaired by the Prime Minister. He was elected by the World Economic Forum as a 2007 Young Global Leader and is a 2008 Eisenhower Fellow. He is a founder of the Young Leaders Programme of the World Islamic Economic Forum. He graduated from Oxford University where he obtained his B.A. (Hons) and M.A. in Politics, Philosophy and Economics. He has attended advanced leadership studies at the Harvard Kennedy School of Government. Datuk Mohd Omar also serves as an independent Non-Executive Director on the boards of Petroliam Nasional Berhad and Symphony House Berhad.

Notes:

IN AR B M O HD r K MO APHA U T A irecto D MUST cutive D

Indep nt N ende e on-Ex

Family Relationship None of the Directors has any family relationship with any other Director and/ or major shareholder of AirAsia. Conict of Interest None of the Directors has any conict of interest with AirAsia Group. Conviction for Offences None of the Directors has been convicted for offences within the past 10 years other than traffic offences, if any. Attendance at Board Meetings The attendance of the Directors at Board of Directors meetings is disclosed in the Statement on Corporate Governance.

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Tan Sri Dr. TonY FErnandEs Group Chief Executive Officer Details of Tan Sri Dr. Tony Fernandes are disclosed in the Directors Prole on page 54 of this Annual Report. Dato KamarUdin bin MEranUn Deputy Group Chief Executive Officer Details of Dato Kamarudin Meranun are disclosed in the Directors Prole on page 57 of this Annual Report. Captain Dharmadi Chief Executive Officer Indonesia AirAsia Captain Dharmadi joined AirAsia Indonesia in 2007 as Chief Executive Officer. Prior to that, he spent more than 32 years at Garuda Indonesia Airlines, holding several managerial positions such as Flight Crew Training Manager, Training Centre Director, Senior Vice President Procurement, and Executive Vice President Operations. He also served as a Captain Pilot in the B747-400 Flight Crew of Asiana Airlines, Korea from 2005-2007. He holds a Bachelor of Technical Engineering from Indonesia, and a Master of Management (International Marketing Management) from PPM Business School, Indonesia. Yoshinori ODAGIRI Chief Executive Officer AirAsia Japan Yoshinori assumed the position of CEO of AirAsia Japan on 17 December 2012. He was part of the pioneering team of AirAsia Japan and in his initial position as COO & Safety General Manager of the airline, was engaged in setting up and subsequently launching its operations system. Before joining AirAsia Japan, he worked for 25 years at All Nippon Airways, where he held prominent positions in the operations eld such as in Operations Planning at the Fight Operations Department, Station Control of Narita International Airport and Haneda International Airport, Tokyo. His cherished motto is sincerity. He is a very amiable person and is called OD by all Allstars. He maximises the indepth knowledge and experience cultivated on the front-line of operations to set a goal to make AirAsia Japan the safest and most beloved LCC in Japan.

From

IRI ODAG cer ffi Yoshinori tive O Execu Chief Japan ia AirAs Dharmadi fficer ive O Captain t u c e Ex Chief sia AirAsia Un e MEran Director Indon bin e tiv Udin Execu Kamar t NonDato ependen Es r Ind Nonirecto FErnand ive D Y t u c on e T x . E ri Dr t Non Tan S ependen d In Non

left:

AR a N OM fficer AIREE xecutive O E Chief Berhad ia AirAs LD BIJLEVEcer N O ffi AP TASS xecutive O E Chief Asia ir S Thai A IVERO HONT cer E N N ffi A MARI xecutive O E Asia ir A Chief pines Philip

e Dire ecutiv x E d n

ctor

AIREEN OMAR Chief Executive Officer and Executive Director AirAsia Berhad Details of Aireen Omar are disclosed in the Directors Prole on page 58 of this Annual Report. TASSAPON BIJLEVELD Chief Executive Officer Thai AirAsia Tassapon joined Thai AirAsia as Chief Executive Officer when the airline took off in 2003. He is entrusted with overseeing all aspects of the airlines operations as well as boosting growth in Thailand. Prior to joining Thai AirAsia, Tassapon was Managing Director of Warner Music (Thailand) Co. Ltd. for ve years. Within three years, he managed to turnaround the company from bottom ranking among all international music companies to achieving the top position. Tassapon has more than 12 years experience in the consumer product industry. He worked in various countries in the region for two Fortune 500 companies - Adams (Thailand) Co. Ltd. and Monsanto (Thailand) Co. Ltd. He was a pioneer at Monsanto, setting up the division from scratch before building it into a multimillion dollar business in just a few years. Tassapon holds a Masters in Marketing, and is currently a part-time lecturer at several leading universities in Thailand. He is well-known for his leadership and team-building abilities. Thai AirAsias success is a result of a passionate, motivated team with strong rapport. MARIANNE HONTIVEROS Chief Executive Officer Philippines AirAsia Maan was appointed as Chief Executive Officer of Philippines AirAsia Inc in March 2011, becoming the rst female CEO in AirAsia Group. She is also a shareholder and Board Director of the company. As CEO, Maan took on the challenge of forming the pioneering team for the start-up company and of securing the air operators certicate and operating permits. Maan is responsible for overseeing all aspects of the airlines operations, including establishing domestic and regional routes and ensuring compliance with the governments civil aviation regulations. Her rich and varied experiences prior to AirAsia involved television broadcasting and production, corporate communications, computer graphics, arts management and music. She established Warner Music Philippines in 1992 and served as Managing Director for six years.

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KENNY WONG Country Head Commercial Kenny is responsible for Marketing, Sales & Distribution, Customer Relationship Management, Digital Services and Network Planning for all AirAsia routes. He has over 26 years experience in consumer-centric industries having worked with multinationals within the fast-moving consumer goods, telecommunications and entertainment (motion pictures and lm exhibition) industries. He has held senior marketing and top leadership roles across AsiaPacic, covering diverse markets including Thailand, Singapore, the Philippines, Cambodia, Myanmar and Malaysia with increasing nancial responsibilities within the last 10 years. A Penangite, Kenny is a 100% product of local education, and graduated with a Bachelor of Economics from Universiti Kebangsaan Malaysia many years ago. He is passionate about people, and seeks to inspire and to be inspired. AMIR FAEZAL BIN ZAKARIA Regional Head Legal and Compliance Amir provides the Group with legal support relating to aircraft purchase and nancing, corporate exercises and joint ventures, contracts for airline operations, commercial and procurement contracts as well as managing litigation matters. He also oversees regulatory and compliance for the AirAsia Group of Companies. He has a wide range of legal experience in areas of commercial law, corporate nance, banking and transport. Prior to joining AirAsia, Amir spent 13 years as a legal practitioner in a number of Malaysian legal rms including Rashid & Lee (now Shahrizat Rashid & Lee) and Zaid Ibrahim. Amir graduated with an L.L.B. (Hons) from Leeds Metropolitan University, UK, is a member of the Honourable Society of Lincolns Inn since 1992 and was called to the Malaysian Bar in 1993. ANAZ BIN AHMAD TAJUDDIN Regional Head Engineering Anaz qualied as an Avionics Aircraft Engineer at the age of 21. Over the next 20 years, his work in the aviation industry took him around the world. He was with Malaysia Airlines, Jet Airways in Mumbai, Monarch Airlines Engineering in London, and Bahrain Airport Services. Anaz joined AirAsia in 2003, and was instrumental in planning the entry into service of AirAsias Airbus A320 eet, as well as setting up the Warranty & Contracts Department. In 2007, he moved to AirAsia X, joining the airlines pioneering management team. Anaz is now responsible for the engineering department within the AirAsia Group.

From

left:

NG Y WO KENN ad try He Coun rcial e Comm

A KARI N ZA I B L A FAEZ AMIR al Head n ance Regio nd Compli a N l a g Le UDDI D TAJ A M H BIN A ANAZ al Head n io Reg g eerin Engin

E EDAL LITTL r e W c E ffi R AND inancial O F f ie Ch BIN ce Finan WAN RIDZ D A HM AIN A CAPT SALLEH D MOH r to s Direc ration t Ope h g li F

ANDREW LITTLEDALE Chief Financial Officer Finance Andrew was appointed to his current role on 14 February 2012. Prior to joining AirAsia in 2010, he was the Chief Financial Officer for AirAsia X, a position he had held since the airlines inception in 2007. He has over 20 years experience in the banking and aviation sectors and has worked in Chile, Egypt, the UK and Malaysia. His earlier appointments include Group Reporting Manager of Cookson plc, Group Management Accountant of FKI plc in London and Group Financial Accountant with Blue Circle Industries plc, London. Andrew holds a B.Sc. in Zoology from the University of London, UK and is an FCMA qualied accountant. He also has a JAA Private Pilots License. CAPTAIN AHMAD RIDZWAN BIN MOHD SALLEH Director Flight Operations Captain Ridzwan is responsible for the efficient and safe operation of AirAsias aircraft by its pilots and cabin crew, and for ensuring compliance with national and international regulatory requirements and procedures. He joined AirAsia in October 2004 and, following a stint at AirAsia X from 2010, returned to AirAsia in 2013. In his 43year career, he has served the Royal Malaysian Air Force as Director of Air Plans and the Department of Civil Aviation Malaysia as Director of Flight Operations and Airworthiness. Capt Ridzwan has attended numerous courses including Flight Instructions (RAAF East Sale), Test Pilot (ETPS Boscombe Down), Aircraft Accident Investigation (FAA Academy, Oklahoma), Operations Surveillance and Inspection (FAA Academy, Oklahoma), Simulator Certication (FAA Academy Oklahoma), Safety Management System (ICAO/ DCA Malaysia), Initial Aircraft Certication (FAA/NTPS Mojave), Advanced Management Program (Staff Management College, Mt Eliza, Melbourne) and Military Operations Research and Analysis (RMCS Shrivenham).

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FRANCIS LOH Head Guest Services Francis joined AirAsia in 2013 He has over 27 years of experience in various organisations and industries, starting with the Star Publications, then venturing into nancial services with corporate organisations such as Citibank, Standard Chartered Bank and Diners Club. He has held senior roles in managing products, growing new businesses, improving processes and managing customer service. Francis is well-equipped to understand, analyse and ultimately bring about positive change in offering great, consistent customer service that will be a differentiator during these competitive times. He holds a B.Sc. in Systems Management from the University of South Alabama, US and an Associate Business Administration from the Institute of Business Administration, New South Wales, Australia. He has also attended the Said Business School at Oxford University. PAUL CARROL Head Route Revenue Paul joined AirAsia in 2011 and currently oversees all aspects of the Companys pricing and inventory management function while tactically managing capacity appropriately with corresponding demand to maximise revenue performance. He spent the early part of his career working in a number of analytical roles within the industry, starting off with the Revenue Management team at the Aer Lingus Group based in Dublin. He then joined the start-up team at ydubai, the UAEs rst low-cost airline, with responsibility for the integration of network, schedules planning and capacity management. Paul is a graduate of Craneld University, UK and holds an M.Sc. in Air Transport Management. TERRI CHIN Regional Head Quality and Assurance Terri is responsible for corporate quality, customer care, continuous improvement and assurance, in support of AirAsias growth. The objective of the department she heads is to ensure the Companys internal processes are efficient, effective and adequately controlled. Terri also drives process reengineering via the Continuous Improvement Programme by initiating and coordinating strategic projects. Upon joining AirAsia in 2004, she established and headed the Internal Audit department. Between 2008 and 2011, she was with Deutsche Post DHL in Germany overseeing audits in the Asia-Pacic, Middle East, Eastern Europe and Africa regions. She was also involved in implementing aviation audits across the group globally. Terri holds a B.Sc. in Economics from the University of London, UK and an MBA in International Management from RMIT University, Australia. She is a Certied Information Systems Auditor, Certied Internal Auditor and Certied Fraud Examiner.

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OH CIS L FRAN Head ervices tS Gues OL CARR PAUL ue Head Reven Route

N I CHI TERR al Head n rance Regio and Assu y t li a Qu

MAIL AH IS R M A Z ad nt try He Coun Departme le p o e P t AR pmen K KUM evelo D e r ASHO al Head u t struc n Regio s and Infra t r o Airp RTER N HE JASO al Head ntre n ol Ce Regio ions Contr at ZAMRAH ISMAIL Oper Country Head People Department Zamrahs focus is on driving and managing the entire gamut of Human Resources, namely Resourcing, Rewards & Benets, Industrial Relations & Compliance, People Engagement, Performance & Talent Management and People & General Services. She is responsible for driving aggressive growth plans in human resources aligned with AirAsias overall vision as well as implementing a culture to attract new talent from outside and retain internal talent. Her ultimate goal is to ensure AirAsias corporate culture serves as our competitive advantage. Zamrah joined AirAsia two years ago as Head of Resourcing & Talent Management, and assumed her current role in August 2012. She was with Standard Chartered Bank Malaysia for many years prior to joining AirAsia, most of her time spent in Consumer Banking with stints in Branch Banking, Money Market Operations, Trade Finance and Human Resources. Zamrah was instrumental in establishing and implementing a Sales & Service culture in Standard Chartered Bank Malaysia. In her last role with Standard Chartered, she was Head of the 100-seat Contact Centre for Consumer Banking, which she was instrumental in establishing. Zamrah holds a B.A. (Hons) in Geography and an M.Sc. in Urban & Regional Planning from the University of Strathclyde, UK. She indulges in extreme sports such as driving fast cars and ying high in hot air balloons.
ASHOK KUMAR Regional Head Airports and Infrastructure Development Ashok was the Regional Head of Strategy, Airports and Planning from January 2005 until being re-designated to his current position in November 2011. His portfolio includes coordinating AirAsia Groups infrastructure developments and managing airport charges. He has more than 40 years experience in the airline industry, having worked from 1970 to 1972 at Malaysia-Singapore Airlines and from 1972 to 2003 at Malaysia Airlines, where he held various key positions, including Assistant General Manager, Operations Planning, before joining AirAsia in 2003 as Senior Manager, commercial Planning and Strategy. Ashok obtained a Bachelor of Applied Economics (Hons) from the University of Malaya. JASON HERTER Regional Head Operations Control Centre Jason joined AirAsia in 2010 and is currently responsible for calculating ight and cabin crew manpower needs, crew training and roster planning as head of the Flight Dispatch and Crew Control Departments. He is also Chairman of the On-time Performance Committee for the Group. Jasons career in aviation began in 1999 upon his graduation from the Sheffield Academy in Florida as a Flight Dispatcher. He served at Amerijet International in South Florida until 2006, when he joined the start-up Sama Airlines in Saudi Arabia. In 2007, he moved on to airline operations software solutions provider Navitaire Inc as a Business Analyst. His role entailed identifying problems and implementing software solutions for numerous airlines throughout the world such as Avianca, Frontier, Skybus, Viva Aerobus, Alma, Astraeus and Air Madagascar. That led him to AirAsia, where he was introduced to Tan Sri Tonys vision to expand and grow throughout Asia. Jason feels fortunate to have been with AirAsia ever since.

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SHAHRUDIN KASSIM Head Government Business Development & Charter Shah is the driving force in AirAsias Government and Chartered sales strategy, leading in the development and growth of new business while maintaining relationships with executive clients. The Government department recently introduced the Waran Perjalanan Udara Awam (WPUA), a customised product for all government officials travelling on duty. The team was also able to serve the nation when, in 2013, it was involved in the National Charter Mission to Lahad Datu, Sabah. Shah joined AirAsia in 2002 and was involved in the LCC Call Centre set-up in early 2006, following which, in 2008, he was part of the team that established the Government Business. Before joining AirAsia, Shah was an auditor in several corporate organisations. He is passionate about singing, which he nds very therapeutic. CHIA YONG WEI Head Innovation, Commercial & Technology Yong Wei is responsible for AirAsias day-to-day operational systems, ensuring that all Innovation, Commercial and Technology infrastructure and networks are optimised and secured. He is a key driver of our rich customer relationship management (CRM) analytics repository, and sees to the continuous development of new features and functions to improve the customer experience. Yong Wei also oversees the strategising, design and deployment of new system capabilities to drive Allstar productivity, allowing for more efficient collaboration and engagement as the Company continues to grow across the Asean region and beyond. Prior to joining AirAsia in June 2011, Yong Wei was with Accenture for 12 years, working in the Communications and High Tech industry, responsible for business solutioning, followed by execution of project delivery. Yong Wei has a degree in Civil Engineering from the University of London, Queen Mary & Westeld College, UK and a Graduate Diploma from the Royal Melbourne Institute of Technology, Australia. A keen sportsman, Yong Wei was a National Junior Badminton Player and played competitive tennis and golf until he joined AirAsia, where he is now working on trying to outrun and outswim the CEO of AirAsia X, Azran. SATHIS MANOHAREN Regional Head Cargo Sathis manages the AirAsia Group Cargo business, which involves purely belly-space cargo. Prior to joining AirAsia, Sathis spent 10 years in the oil and gas industry, starting off at Foster Wheeler, then moving on to ConocoPhillips before joining Accenture, where he was engaged in management consulting projects for clients such as Halliburton in Singapore, Shell in Brunei, Petronas in Malaysia and China National Offshore Oil Corporation (CNOOC) in Beijing. Sathis holds a B.Sc. from Universiti Sains Malaysia and obtained the Six Sigma Black Belt from the ConocoPhillips Six Sigma training programme in the UK. Under his leadership, AirAsia Cargo has won three world awards and three Asian-level awards in the last four years. AirAsia is the only airline to win Air Cargo Weeks World Best Customer Care award for cargo for two consecutive years and the rst low-cost airline to have ever won this award.

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CAPTAIN SAIFUL JOHAR ABDUL LATIFF Director Safety Captain Saiful was appointed Director of Safety at AirAsia on 1 December 2012, entrusted with improving safety awareness within the Company and ensuring that the Safety Management System (SMS) is integral to the work culture. He joined AirAsia on 1 February 2002 as a First Officer on the Boeing 737 eet and was promoted to Captain on the same eet on 10 August 2003. In 2006, he was appointed as Assistant Chief Pilot of Operations, before taking over as Chief Pilot of Operations on 15 January 2007. He transferred to the Safety Department on 1 August 2009 to take on the position of Chief Pilot for Flight Safety. TAN ENG ENG Group Head Internal Audit Eng Eng is responsible for providing independent and objective assurance on the adequacy and effectiveness of the Groups overall system of internal controls, risk management and governance, reporting to the Audit Committee and to the Group CEO. She has 14 years of audit experience in various industries including nancial institutions, manufacturing, automotive, construction and property and broadcasting. Prior to joining Air Asia, she led the Astro Group Corporate Assurances Regional Operations and Special Projects team from 2008 to 2012. Eng Eng has a B.A. in Economics (Hons) from the University of Malaya, and an M.B.A. from the University of Strathclyde, UK. She is a member of the Association of Chartered Certied Accountants (ACCA) and the Institute of Internal Auditors Malaysia (IIAM). CHAN SUIT FONG Group Head Global Shared Services Since joining AirAsia in September 2012, Suit Fong has been overseeing all Finance, ICT and People Department Operations across the Group. She was previously with the Shell Group of Companies holding various positions across the value chain of oil and gas activity from managing the downstream manufacturing and marketing businesses to business development and negotiating production sharing contracts as well as mergers and acquisitions in the upstream business, based in Malaysia, the UK and Singapore. Prior to Shell, she was an investment banker. Suit Fong holds an M.B.A. and is a Certied Public and Chartered Accountant. She has two wonderful children who teach her new perspectives every day, and counts herself additionally privileged to have met the Dalai Lama twice, received his personal blessings and shook his hand, which was softer than a babys!

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n ork o w o t k d or ar use in New Yives m O r n t Airee ading oond deriva ole the tr equities a ay, her wh s e d e wher er life. Tonged as sh of n h a was d has ch e positio om worl ed into th erhad. Fr , she es stepp f AirAsia B g pric se to n i t o a CEO ing uctu am of clo f 66 te to tor moni anaging a and a ee routes is m Allstars rates 82 e 6,000 at op countries. h t t f aircra across 15

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On 1 July to be precise. For this is the day when AirAsia created history yet again this time with the appointment of Aireen Omar as our new Malaysia Chief Executive Officer. The move was to free up Tan Sri Dr. Tony Fernandes to focus more closely on his role as Group head, but also meant we now have two women CEOs organisation-wide, not forgetting Marianne Hontiveros in the Philippines. No other airline group in the region can lay claim to this distinction. Aireens appointment on its own was special, validating our philosophy of grooming our own leaders. An Allstar for six years, she has demonstrated her leadership and management qualities throughout her time here, thus truly deserves this promotion. On behalf of the Board of Directors and, if I may take the liberty, on behalf of all of you, I would like to congratulate Aireen on her appointment and look forward to working closely with her to take AirAsia to new heights. I would also like to take this opportunity to record the sincere and deep appreciation of everyone associated with AirAsia for all that Tony has done, and continues to do. The leadership duo of Tony and Dato Kamarudin Meranun, our co-founder and Deputy Group CEO, forms the tag team par excellence in the Malaysian corporate sector. It is hard to think of any other team that could do what they have done for AirAsia, namely grow this Company from a Malaysian, to an Asean and, now, an Asian airline. All within the short space of 11 years.

, oUR n U Ran In Me M PaR d U R a KaM tag tea Rd to R Dato RMS tHe . It IS Ha done fo and O, fo R Sean aVe ony of T RoUP CE Rate Secto tHey H , to an A RS. o U G Hat Pd yea Ian RPo RSHI ePUty SIan co ULd do W MaLayS of 11 D eade ace a L P ay M S co L R and THe tHat Pany fRo e SHoRt Unde In tHe Ma M fo H oM co R tea nt LLence otHe W tHIS C LL WItHI ce X e any y gRo Ine. A K of L tHIn Ia, naMe SIan aIRL S A AIRA , an noW , and

When we rst started out with two aircraft, based in the old Subang Airport, we promised Now everyone can y. Our vision from the start was to be an Asean airline, hence everyone referred to the approximately 600 million people who live within this network of 10 countries. This vision materialised fairly quickly for a low-cost carrier, seen to be something of an experiment at the time. We signed on with our Thai partners to establish Thai AirAsia in November 2003, and a year-and-a-half later formed AWAIR (now Indonesia AirAsia). From 2005, when the rst Indonesia AirAsia ight took off from Jakarta to Singapore, we have been building more hubs in Malaysia, Thailand and Indonesia, and growing our route network so that more people would have easy access to our affordable service. In 2012, we achieved two further milestones when Philippines AirAsia and AirAsia Japan spread their wings allowing the Group to cater more fully to the populations of the Philippines and Japan, which stand at around 105 million and 127 million respectively.

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Philippines AirAsia, moreover, provides us with greater connectivity within Asean from a base at the north-eastern boundary of the region and, with ights from Clark to Hong Kong and Macau, also enhances our links with Greater China. AirAsia Japan creates further opportunities to develop the northern frontiers of Asia. Whats more, with our operations in Japan and, soon, India we are now AirAsia not just in name, but in fact. And what an exciting fact this is indulge me as I expound on the numbers. As we expand our footprint to encompass North Asia and South Asia, we are edging ourselves into a position where we will be able to make the dreams of some 3 billion people come true. This is no less than 43% of the worlds population. For a low-cost carrier that began with two aircraft ying to six destinations in Malaysia slightly over a decade ago, that is simply out of the world! FOUNDATION FOR COMMUNITY OUTREACH Another very exciting development in 2012 was the setting up of the AirAsia Foundation. We have over the years been serving the local communities in destinations we y to in various different ways. With our Foundation, our outreach programmes will be more structured, targeting three areas in which we believe we are able to make meaningful

and signicant contributions. These are: social enterprise, heritage & conservation and anti-human trafficking initiatives. Our Foundation is led by a Council of Trustees comprising six high-prole and inspiring leaders from the region who truly believe in the future of an Asean Community and who are committed to guiding the Foundation in carrying out its projects. Among the Trustees are our very own founders Tony and Kamarudin, who will contribute towards the nurturing of enterprise among the disenfranchised. Joining them are Council Chairman, Atty Katrina Legarda, a well-known advocate of womens and childrens rights in the Philippines; Dr Anies Baswedan, head of the Paramadina University in Jakarta and founder of a movement that deploys university graduates to teach in remote areas; Youk Chhang, the Executive Director of the Documentation Center of Cambodia and a survivor of the Khmer Rouges killing elds; and Dr Veerathai Santiprabhob, one of Thailands top economists. The Foundation has already begun to support a number of initiatives, which are described in greater detail in the Sustainability Report of this annual report. This report is another rst for us and underlines our commitment both to adding value to our stakeholders by balancing our nancial

performance with social and environmental considerations, as well as to enhancing transparency in all areas of our operations. FINANCIAL PERFORMANCE While we have continued to expand, the year was exceptionally remarkable in that we also managed to grow both our revenue as well as prots. Group revenue for the nancial year ended 31 December 2012 was RM4.95 billion, a 10% increase from 2011, while our prot after tax surged by 230% to close at RM1.83 billion as compared to RM555 million in 2011. Net operating prot stood at RM729 million. As a result of this outstanding performance, the Board of Directors has agreed to a special dividend of 18 sen per share and ordinary nal dividend of 6 sen per share, subject to approval at the 2012 AGM. We feel privileged to be able to offer this dividend as our way of acknowledging the many shareholders who have stood by us during the tough and challenging early years. I am also pleased to announce that the Company has formalised a dividend policy of paying out 20% of our annual net operating prot in the form of dividends as of 2012 onwards.

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OUTLOOK & ACKNOWLEDGEMENTS AirAsia is at a very exciting space in our ongoing journey in the thick of our Asean expansion while having just embarked on integrating our operations within the wider Asian continent. There is a general trend towards greater relaxation of aviation regulations in the region, which has served our purpose well in the past, and promises to continue to do so in the near future. Our recently announced Indian venture, for example, was only made feasible after the Indian Government announced in September 2012 that foreign companies can now own up to 49% (from 16%) equity in domestic airlines. As we approach 2015, when Asean nations are to implement an Open Skies policy for international travel, we expect increasingly more liberalisation within the industry, making it easier for us to expand our network of associates, hubs and destinations. Within the AirAsia Group itself, 2013 will see our associate Indonesia AirAsia and sister company AirAsia X undergo their own initial public offerings (IPOs), which will signicantly strengthen these companies balance sheets and allow them to contribute more positively towards Group prot. At the same time, there will be no let-up on our

focus either on cost efficiencies, or on pleasing our guests with a consistently high level of service. In 2012, we managed to retain our title of being the Worlds Best Low-Cost Airline bestowed on us by London-based aviation consultant Skytrax for the fourth year running and we certainly dont intend to relinquish this recognition any time in the near future. Our Investor Relations team, including our Group CEO, also retained the titles of Best Investor Relations Company for Malaysia, Best CEO for Malaysia and Best Investor Relations Officer for Malaysia for the second year running, at the 2nd Asian Excellence Recognition Awards by Corporate Governance Asia. In addition, AirAsia was named Value Airline of the Year for 2012 by Air Transport World (ATW), the leading monthly magazine covering the global airline industry; Best Low-Cost Airline by Business Traveller Asia-Pacic, Best Managed Company Overall in Malaysia and Best Managed Company in Asia Airlines/Aviation by Euromoney magazine, among many others. Our growing collection of awards proves just one simple point that we offer true value to all our stakeholders from holiday-makers and business travellers to our shareholders and the larger investor community.

For this, I have our fantastic team to thank. I have already pre-empted my acknowledgements by singling out Tony, Kamarudin and Aireen, but the stellar cast of AirAsia comprises many, many more individuals. We are truly fortunate to have such a great group of people guiding AirAsia and making things happen. This group includes my colleagues on the Board of Directors, the regional team in Jakarta, and the senior management teams at AirAsia and each associate company. To everyone included in these teams, thank you. But most of all, I would like to express my sincere gratitude to our spirited and inspiring team of Allstars who really go all out to make us the wonder company that we are. In 2012, this amazing team has proven, yet again, that with passion and perseverance, we can turn all our dreams into reality.

Dato Abdel Aziz @ Abdul Aziz bin Abu Bakar Non-Independent Non-Executive Chairman

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