Annual Report 2020

ABOUT THISREPORT Change is one of the few constants at AirAsia, and has marked our evolution from a Malaysian low-cost carrier to a regional low-cost carrier and, now, a digital company anchored on travel and lifestyle. Along with this transformation, it has become even more imperative to report on our business, strategies and performance in a manner that is clear, concise and comprehensive. We recognise that the Integrated Reporting (IR) Framework provides an excellent platform to do so, hence have made the decision to adopt this form of reporting from this year onwards. In this annual report, stakeholders will find the most essential elements of integrated reporting, namely our business model in which we clearly indicate what our resources (or capitals) are, and how these are leveraged to create value for our various stakeholders. In future reports, we will adopt increasingly more elements of the IR Framework until the ultimate objective of presenting a complete IR is achieved. MATERIALITY Information disclosed is relevant to our material matters, which have been determined by extensive stakeholder engagement as well as internal evaluation. These material matters reflect existing and emerging risks and opportunities, which could affect our ability to create value in the short, medium and long term. REPORTING FRAMEWORK In presenting this report, we have been guided by the principles and requirements of the Integrated Reporting Framework issued by the International Integrated Reporting Council (IIRC), the Main Market Listing Requirements (MMLR) and Corporate Governance Guide (3rd Edition) issued by Bursa Malaysia, the Malaysian Code on Corporate Governance (MCCG) 2017, the Global Reporting Initiative (GRI) Standard and the Companies Act 2016 (CA 2016). SCOPE AND BOUNDARY We disclose material information relating to the AirAsia Group – comprising our Airlines and Digital businesses – covering the year from 1 January 2020 to 31 December 2020. Material events that take place up to the Board’s approval date of 30 April 2021 are also included. COMBINED ASSURANCE Contents of the report have been approved by our Board of Directors, our internal auditors, and Ernst & Young PLT in its capacity as our external auditor. FORWARD- LOOKING STATEMENTS This report contains certain forward-looking statements relating to future performance. Such statements are premised on current assumptions and circumstances, which could change, hence they necessarily involve uncertainty. Various factors could cause actual results to differ materially from those expressed or implied by these forward-looking statements.