Airports of Thailand Plc. Airports of Thailand Plc. Corporate - - PDF document

Airports of Thailand Plc. Airports of Thailand Plc.

Corporate Presentation Corporate Presentation – – Q2_FY08 Q2_FY08

(January 2008 (January 2008 – – March 2008) March 2008)

Investor Relations Center, Email: aotir@airportthai.co.th, Tel: (662) 535-5900, Fax (662) 535-5909

Disclaimer

This presentation is intended to assist investors to better understanding the company’s business and financial status. This presentation may contain forward looking statements relate to analysis and other information which are based on forecast of future results and estimates of amounts not yet determinable. These statements reflect our current views with respect to future events which relate to

• ur future prospects, developments and business strategies and are not guarantee of

future performance. Such forward looking statements involve know and unknown risks and uncertainties. The Actual result may differ materially from information contained in these statements.

1

• Business Overview
• Air Traffic Statistics
• Financial Highlights
• Q & A

Agenda

2

Royal Thai Navy Airport

Sukhothai

Bangkok Airways Airports DCA Airports AOT Airports

Ubon Ratchathani Buri Ram Nakhon Ratchasima Nakhon Phanom Sakon Nakhorn Roi Et Khon Kaen Udon Thani Loei Phetchabun Phitsanulok Lampang Phrae Nan Mae Hong Son Tak Mae Sot U-Tapao Hua Hin Chumpon Samui Nakhon Si Thammarat Ranong Krabi Trang Pattani Narathiwat Trad Surattani

Total of 37 airports

• Airports of Thailand Public Company Limited *

2 in Bangkok and perimeter

• Suvarnabhumi Airport (BKK)
• Don Muang International Airport (DMK)

4 international airports at regional sites

• Chiang Rai International Airport (CEI)
• Chiang Mai International Airport (CNX)
• Phuket International Airport (HKT)
• Hat Yai International Airport (HDY)
• Department of Civil Aviation (DCA)
• 27 regional airports
• Royal Thai Navy
• U-Tapao Airport
• Bangkok Airways Company
• Sukhothai Airport
• Samui Airport
• Trad Airport

PHUKET INTERNATIONAL AIRPORT CHIANG RAI INTERNATIONAL AIRPORT CHIANG MAI INTERNATIONAL AIRPORT DON MUANG INTERNATIONAL AIRPORT HAT YAI INTERNATIONAL AIRPORT SUVARNABHUMI SUVARNABHUMI AIRPORT AIRPORT

* Note: AOT’s traffics account for more than 90% of Thailand’s air traffics.

Airports in Thailand

3

Pai

Fact Sheet

Airports of Thailand PLC Listed on 11 March 2004 Shares outstanding 1,428.57million Shareholders

• Ministry Of Finance

70%

• Free Float

30% Average Daily Market Cap (Jan – Mar 07)

• BHT

79,444.37M

• US$

2,503.76M

Business Overview

Ministry of Finance 70.84% State Street Bank and Trust Company For Australia 2.59% State Street Bank and Trust Company 2.31% HSBC (Singapore) Nominees Pte Ltd. 2.31% Goldman Sachs International 1.3% Nortrust Nominees Ltd. 4.22% Chase Nominees Limited 4.59% Thai NDVR 0.94% Others 11.74%

Shareholders Information Dividend Policy

Not less than 25% of net profit of the company for each year after deduction of all specified reserves, subject to our investment plans and other considerations that our Board of Directors deems appropriate 2.41% 37.83% 1.20 3.85 2004 3.40% 37.89 % 1.70 5.19 2005 51.95% 37.85 % Dividend payout ratio 0.64% 0.40 0.77 2007 4.74% 2.75 7.26 2006 Dividend Yield

(Year End)

Dividend per share

(Baht)

EPS (Baht) Fiscal Year *

As at January 2008

4

*Note: In FY2006 AOT paid dividend twice:

• On 12 Oct 2006 (Baht 0.95 per share)
• On 23 Feb 2007(Baht 1.80 per share)

45 x 3,000 1 0.036 6.5 20 23,369 47 HKT 60 x 4,000 60 x 4,000 2 2.00 68.7 n/a 1,043,020 3,212 Changi 60 x 3,800 2 3.00 48 55 710,000 3,101 Chek Lap Kok 45 x 3,000 1 0.005 1.7 12 16,650 15 CEI 45 x 3,050 1 0.013 1.9 20 14,656 28 HDY 2 1 2 2 Runways (Meters) Capacity Area 60 x 3,700 60 x 4,000 3.00 45 76 563,000 8,000 BKK Cargo (Million Metric Tons/year) Passenger (Million/year) Aircraft (Flight/hour) Terminal Area (Sq.m.) Total Area (Acres) Airports 2.00 0.035 0.91 44 8 36.5 60 x 3,700 45 x 3,500 60 391,316 1,552 DMK 45 x 3,300 24 31,301 642 CNX 60 x 3,750 n/a 496,000 13,880 Incheon

Airport Capacities

5

15.8 18.9 26.3 6.3 7.4 43.5 59.4 78.9 19.5 22.8 2005 2006 2007 Q2_07 Q2_08 International Domestic

59.3 78.3 105.2 25.8 30.2 32.0% 34.3%

12.84% 4,051 3,590 HKT 18.91% 19,441 16,338 BKK + DMK

• 7.07%

2,089 2,248 HDY 75.20% 1,286 734 CEI 7,888 599 DMK 11,553 15,750 BKK 2,884 Q2_FY07 3,389 Q2_FY08 17.51% CNX YoY%

17.1%

(Unit: Thousand)

AOT Traffics

13.60% 12,126 10,674 HKT 4.89% 82,573 78,727 BKK + DMK

• 4.70%

2,796 2,934 HDY 36.61% 1,903 1,393 CEI 15,530 5,722 DMK 67,043 73,005 BKK 6,769 Q2_FY07 7,209 Q2_FY08 6.50% CNX YoY%

Aircraft Movement Statistics

• Domestic

Thai Air Asia Nok Air One Two Go Airlines

• International

Air Asia Tiger Airways Jetstar Asia Jetstar Airways CEBU Pacific Air Firefly Mahin Lanka Airlines Air India Express Indonesia AirAsia

Major LCCs Airline

(Unit: Thousand) 193.7 201.8 215.2 55.8 58.1 136.7 148.5 175.1 44.7 48.5 2005 2006 2007 Q2_07 Q2_08 International Domestic

330.4 350.3 390.3 100.5 106.6 6.0% 11.4% 6.1%

6

LCCs Traffics

* Note: Fiscal Year starting from October to September AOT Average Aircraft Movement Growth Rate for the last 6 year is 9.8%

Note

AOT Traffics LCCs Traffics

Passenger Movement Statistics

29.9 33.1 35.2 9.3 10.3 17.4 18.7 20.8 5.5 6.2 2005 2006 2007 Q2_07 Q2_08 International Domestic

16.50% 1,925,647 1,652,955 HKT 10.78% 13,061,436 11,790,652 BKK + DMK 17.72% 375,800 319,239 HDY 25.01% 234,719 187,767 CEI 1,692,505 125,644 DMK 11,368,931 11,665,008 BKK 879,175 Q2_FY07 937,718 Q2_FY08 6.66% CNX YoY% 1.6 2.2 2.9 0.7 0.9 5.5 7.0 9.1 2.3 2.8 2005 2006 2007 Q2_07 Q2_08 International Domestic 15.71% 504,358 435,884 HKT 23.97% 2,357,780 1,901,919 BKK + DMK 14.44% 277,076 242,116 HDY 48.63% 134,693 90,622 CEI 955,296 68,717 DMK 1,402,484 1,833,202 BKK 362,537 Q2_FY07 402,973 Q2_FY08 11.15% CNX YoY%

9.5% 11.5% 8.1% 29.5% 30.4% 21.2% 51.8 47.3 56.0 14.8 16.5 7.1 9.2 12.0 3.0 3.7

(Unit: Million) (Unit: Million)

7

2004

• Bird Flu
• Southern Violence

2005

• Tsunami

2006

• Coup D’etat
• Southern Violence

AOT Average Passenger Movement Growth Rate for the last 6 year is 8.4% Major Events Note

Airport Revenues

Fees paid by airlines for use of boarding bridges, varies by maximum take off weight of the aircraft and length of time at a gate Aircraft Service Charges Effective on Feb 1st, 2007 THB 500 to THB 700 - International PSC THB 50 to THB 100 - Domestic PSC Passenger Service Charges (PSC) 20% increased on Jan 1st, 2005 15% increased on Apr 1st, 2007 Landing & Parking Charges Varies by activities such as Duty Free, Souvenirs, Food & Beverage, Airline Catering, Fueling Services, Car Parking, Advertising, Banking, etc. Concession Varies by activities such as Utilities, Check-in Counter Services, Airline Announcement Services, Hydrant System Services, etc. Service Rental tenants include airline, government agencies and concession tenants. Rents are determined based

• n the tenants’ business use at each of our airports.

Office & State Property Rental

70.06%

(End of Q2_08)

Aeronautical 29.94%

(End of Q2_08)

Non-Aeronautical

8

2005 2006 2007 Q2_07 Q2_08

Landing & Parking charges (LPC) Passenger service charges (PSC) A/C Service charges (ASC) Office and state property rents (OPR) Service revenues (SVR) Concession revenue (CCR) 2.23% 4.83% 5.91% 18.70% 53.61% 14.72% 1.91% 7.14% 8.72% 18.06% 50.08% 14.09%

Total Revenue By proportion

2,012.28 2,818.54 1,524.61 427.10 8,781.48 3,937.40 FY2007 (50.97)% 202.18% 58.36% 36.46% 35.95% 13.52% YoY(%) 240.33 732.31 293.91 110.95 2,665.92 930.19 Q2_07 16.60% 853.86 932.72 SVR 119.83% 528.31 4,104.49 CCR 13.87% 3,035.73 6,459.46 PSC 17.70% 1,094.80 3,468.48 LPC 962.72 312.98 FY2006 432.94 116.01 Q2_08 47.31% OPR 4.56% ASC YoY(%)

By Growth

14,894.40 16,240.73 9.04%

Revenue Breakdown

(Unit: Million) (Unit: Million)

19,501.41 20.07% 21.88% 4,973.61 6,061.66

Q2_FY07 Q2_FY08 9

* Note: Fiscal Year starting from October to September

Airport Expenses

Consists of rental payments made to the Ministry of Finance under the airport land leases State Properties Rental Consist of repair and maintenance of runways and taxiways, elevators, escalators and cover walkways, air conditioning systems, conveyor belts, transportation equipment and construction and electrical appliances Repair and Maintenance Consist of depreciation charges in respect of the property, plant and equipment as well as amortization in respect of the intangible assets. Calculating on a straight-line basis over the assets’ useful lives (between 5 and 50 years) Depreciation and Amortization Consist of electricity charges, costs related to outsourced workers, property taxes, consultant fees, telephone, advertising and public relations costs, water, insurance premium costs and etc. Operating Expenses Consist of employee salaries and bonuses, employee benefits, retirement payments and contributions to employee provident fund Personnel Expenses 10

2005 2006 2007 Q2_07 Q2_08

Personnel expenses Operating expenses Repair and maintenance (R&M) State property rental (SPR) Depreciation and amortization (D&M) 3.78% 46.63% 29.67% 14.69% 5.22% 3.94% 6.20% 15.29% 28.79% 45.78%

Total Cost By proportion

1,400.04 740.32 278.38 3,626.77 3,374.57 FY2006 7,759.50 846.32 732.38 5,730.13 2,927.84 FY2007 454.24% 14.32% 163.09% 58.00% (13.24)% YoY(%) 1.64% 1,933.32 1,902.08 D&M 0.45% 1,215.69 1,210.30 Operating 7.75% 645.75 599.28 Personnel 212.75 154.31 Q2_07 261.94 166.31 Q2_08 23.12% SPR 7.78% R&M YoY(%)

By Growth

7,251.71 9,420.08 29.90%

Expense Breakdown

(Unit: Million) (Unit: Million)

91.04% 3.54% 17,996.17 4,078.71 4,223.00

Q2_FY07 Q2_ FY08 11

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 FY2005 FY2006 FY2007 Q2_07 Q2_08

Margin & Growth

Total Revenue EBITDA EBIT Net Profit

Q2_FY07

2,796.98 (56.24%) 894.90 (17.99%) 839.33 (16.88%)

Q2_FY08

3,771.97 (62.23%) 1,838.65 (30.33%) 3,157.97 (52.10%) 34.86% 2 7 6 . 2 5 % 105.46%

YoY comparison

Performance Highlight

(Unit: Million)

12

(Unit: Million)

Growth

Note: Q2_08 Net profit was high because of the compensation from private company as a result of the temporary injunction. 0.76% 1.57% 0.63 0.78 0.64% 51.95% 80.51 0.77 1.27 48.78 62.00 10.00 30 Sep 2007 n/a 4.74% 3.40% Dividend Yield n/a 7.98 9.63 P/E n/a 37.85% 37.89% Dividend Payout 0.80 0.80 0.86 Gearing (%) 0.69 0.52 0.55 Net Gearing (%) n/a 14.72% 11.48% ROE n/a 6.96% 5.5% ROA 31 Mar 2008 30 Sep 2006 30 Sep 2005 10.00 10.00 10.00 Par Value (THB) 57.00 58.00 50.00 Market Price (THB) 50.82 49.81 45.13 BV/share 1.12 1.16 1.10 P/BV 5.19 2.21 7.26 EPS

Financial Ratios

13

Note: Gearing = Total Debt / Total Equity, Net Gearing = Net Debt / Total Equity Total Debt = Total Interest Baring Debt

Appendix A: Consolidated Balance Sheet

143,476.91 69,687.16 73,789.75 9,951.33 52,840.03 10,998.39 143,476.91 124,334.42 8,911.10 10,231.38

30 Sep 2007

69,624.20 79,341.54 70,039.28

Total Liabilities

56,459.40 55,942.02 54,299.38

Long Term Loan

4,780.15 9,406.29 6,244.99

Other Non Current Liabilities

72,306.58 71,163.52 64,481.49

Shareholder’s Equity

142,226.06 150,505.05 134,520.78

Total Liabilities & Shareholder’s Equity 31 Mar 2008 30 Sep 2006 30 Sep 2005

7,863.69 19,759.67 19,416.86

Cash

11,255.68 3,779.38 9,282.14

Other Current Asset

123,106.68 126,966.00 105,821.78

Non Current Asset

142,226.05 150,505.05 134,520.78

Total Assets

9,494.91 8,384.65 13,993.23

Current Liabilities Unit: Million Baht

14

Fuel 1.38 Fuel Pipeline Transportation Co., Ltd. Commercial 5.00 King Power Duty Free co., Ltd. Hotel 9.00 Don Muang International Airport Hotel Co., Ltd

Business Type Percentage of shareholding (%) Name

Hotel 60.00

Subsidiaries

Suvarnabhumi Airport Hotel Co., Ltd Airport Ground Handling Services 28.50

Associated Companies

Thai Airports Ground Services Co., Ltd Commercial 10.00 Airport Duty Free Co., Ltd Catering 10.00 Phuket Air Catering Co., Ltd. Transportation 10.00 Airport Associated Co., Ltd Fuel 4.94 Bangkok Aviation Fuel Services Plc Fuel 10.00 Thai Aviation Refueling Co., Ltd EDI Services 1.50 Trade Siam Co., Ltd.

Appendix B: Subsidiaries & Associated Companies

15

AOT Top 10 Airlines Low Cost Carriers

Appendix C: Airlines Market Share (By Aircrafts) – FY2007

Emirates Bangkok Airw ay s Others JALW ay s Singapore Airlines Cathay Pacific Airw ay s China Airlines Indian Airlines Thai Airw ay s EVA Air Thai Air Asia Jetstar Airw ay s Nok Air CEBU Pacific Air Tiger Airw ay s Air Asia Jetstar Asia One Two Go Airlines Firefly Thai Air Asia Mahin Lanka Airlines 6.96% Thai Air Asia 5.57% Bangkok Airways 2.05% JALWays 2.00% Indian Airlines 2.12% Emirates 1.87% 2.83% 2.98% 3.18% 33.03% EVA Air China Airlines Cathay Pacific Airways Singapore Airlines Thai Airways International 0.38% Firefly 4.63% Tiger Airways 4.45% Air Asia 0.57% CEBU Pacific Air 0.57% Jetstar Airways 2.48% Jetstar Asia 0.12% 19.67% 26.40% 40.74% Mahin Lanka Airlines One Two Go Airlines Nok Air Thai Air Asia

16

AOT Top 10 Airlines Low Cost Carriers

Appendix D: Airlines Market Share (By Passengers) – FY2007

4.02% Cathay Pacific Airways 2.40% JALWays 2.05% EVA Air 3.03% Emirates 1.98% 2.03% 3.30% 3.65% 3.73% 40.95% Korean Airlines Bangkok Airways China Airlines Singapore Airlines Thai Air Asia Thai Airways International 4.88% Tiger Airways 4.80% Air Asia 0.60% CEBU Pacific Air 1.18% Jetstar Airways 2.33% Jetstar Asia 0.07% 0.12% 20.39% 26.69% 38.94% Firefly Mahin Lanka Airlines One Two Go Airlines Nok Air Thai Air Asia

17

JALW ay s Thai Air Asia Others EVA Air Singapore Airlines China Airlines Emirates Bangkok Airw ay s Thai Airw ay s Korean Airlines Cathay Pacific Airw ay s Jetstar Airw ay s Nok Air CEBU Pacific Air Tiger Airw ay s Air Asia Jetstar Asia One Two Go Airlines Mahin Lanka Airlines Thai Air Asia Firefly

Appendix E: King Power Contract

On 20 April 04 AOT awarded the exclusive duty free concession to King Power Duty Free

• Plc. to operate duty free activities at 4 of its airports: Suvarnabhumi, Chiang Mai, Phuket

and Hat Yai International airports.

Duty free concession will have 10 years. On 25 March 05 AOT signed management contract with King Power International Plc. for

retail area at Suvarnabhumi approximately 20,000 m2

Management concession will have 10 years.

Note: (1) 15% for the first 5 years and increases by an increment of 1% for the following 5 years until it reaches 20% in 2015 (2) Example: Bt 32.12 mn for souvenirs in 2004 (3) Example: 15% for books and magazines Duty Free Other Commercial Activities

Min Guarantee Bt (mn) Concession Fee (% of gross revenue) Min. Guarantee Bt (mn) Concession Fee (% of gross revenue) Additional

Duty Free 4,855 (5 years) 15% 16,736 (10 years) 15% - 20% (1) Prepaid Bt2,460 mn (2yrs min. guarantee) at signing of contract Other Commercial Activities Varies by contracts(2) Varies by contracts(3) 1,431 / year 15% Prepaid Bt2,000 mn at signing of contract

Previous Terms Current Terms for Awarded Concessions