For consistency purposes, abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the announcements made by the Company on 5 February 2020 and 11 February 2020.

Reference is made to the Company’s announcements on 5 February 2020 and 11 February 2020 on the formation of the Board Committee comprising of the Non-executive members of the Board (“Committee”) and the appointment of BDO Governance Advisory Sdn. Bhd. (“BDO”) as the independent expert in assisting the Committee in undertaking the independent review.

As an update, the Company wishes to announce that BDO has on 16 March 2020 presented their report on the findings of the independent internal inquiry conducted by BDO to the Committee and circulated the final report to the Committee on 20 March 2020.  The Committee has, upon review of the said report from BDO, accepted the final report issued by BDO. In summary, the findings of BDO are as follows:

• The Company has a robust aircraft procurement process. The process was complied with and the Company’s aircraft acquisition was justifiable and at prices favourable to the Company.

• The Company’s sponsorship of the sports team was approved in compliance with its procedures.

• The sponsorship of the sports team by Airbus was disclosed to and supported by the Board at the relevant time. The sponsorship showed demonstrable benefits to the AirAsia Group and was not linked to any purchase decisions by the Company.

• Tan Sri Anthony Francis Fernandes and Datuk Kamarudin bin Meranun had properly disclosed their interests to the Board and abstained from discussions and/or decisions relating to the said sponsorships.

The report has now been circulated to and accepted by the Board (excluding Tan Sri Anthony Francis Fernandes and Datuk Kamarudin bin Meranun).

This announcement is dated 20 March 2020.