Airports of Thailand Plc. (Opportunity Day 31 May 19) Investor - - PowerPoint PPT Presentation

Airports of Thailand Plc.

Investor Relations Department, E-mail: aotir@airportthai.co.th, Tel: (662) 535-5900, Fax (662) 535-5909

(Opportunity Day 31 May 19)

Agenda

• Business Overview
• Financial Performance for 6M FY2019
• AOT Investment Projects
• Key Development on Non-Aero Business

2

Business Overview

Fact Sheet

• Listed on

11 March 2004

• Shares outstanding

14,285.70 Million*

• Shareholders
• Ministry Of Finance

70%

• Free Float

30%

• Average Daily Market Cap (Oct 18 – Mar 19)
• 939,865.49 Million Baht

Stock Overview

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

(As of December 14, 2018)

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Note: 1. EPS using for calculating the dividend is from the company financial statements.

• 2. AOT’s Board of Directors approved the payment of interim dividend for the first half of accounting year 2015 from Oct. 1, 2014 to March 31, 2015.
• 1. MINISTRY OF FINANCE

70.00%

• 2. THAI NVDR COMPANY LIMITED

4.49%

• 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED

2.76%

• 4. STATE STREET EUROPE LIMITED

1.67%

• 5. SOCIAL SECURITY OFFICE

1.16%

• 6. THE BANK OF NEW YORK MELLON

0.45%

• 7. SOUTH EAST ASIA UK (TYPE A) NOMINEES LIMITED

0.45%

• 8. BNY MELLON NOMINEES LIMITED

0.40%

• 9. VAYUPAK FUND 1 BY MFC ASSET MANAGEMENT PLC.

0.35%

• 10. VAYUPAK FUND 1 BY KRUNG THAI ASSET MANAGEMENT

PLC. 0.35%

Fiscal Year EPS (Baht)1 (The Company) Dividend per share (Baht) Dividend payout ratio Dividend Yield

2012 4.54 1.80 39.65% 2.26% 2013 11.43 4.60 40.23% 2.44% 2014 8.51 3.40 39.95% 1.42% 20152 13.11 6.54 49.96% 2.33% 2016 13.67 6.83 49.96% 1.71% 2017 1.44 0.86 59.64% 1.46% 2018 1.76 1.05 59.66% 1.60%

Note : * Change in Par value of AOT share from 10 Baht per share to 1 Baht per share, effective since February 9, 2017.

Royal Thai Navy Airport

Sukhothai

Bangkok Airways Airports DCA Airports AOT Airports

Ubon Ratchathani Buri Ram Nakhon Ratchasima Nakhon Phanom Sakon Nakhorn Roi Ed 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 39 airports



Airports of Thailand Public Company Limited

• 2 in Bangkok and perimeter
• Suvarnabhumi Airport (BKK)
• Don Mueang International Airport (DMK)
• 4 international airports at regional sites
• Chiang Mai International Airport (CNX)
• Phuket International Airport (HKT)
• Hat Yai International Airport (HDY)
• Mae Fah Luang-Chiang Rai International Airport (CEI)*



Department of Airports (DOA)

• *29 regional airports



Royal Thai Navy

• U-Tapao Pattaya International Airport



Bangkok Airways Company

• Sukhothai Airport
• Samui Airport
• Trad Airport

PHUKET INTERNATIONAL AIRPORT MAE FAH LUANG-CHIANG RAI INTERNATIONAL AIRPORT CHIANG MAI INTERNATIONAL AIRPORT DON MUEANG INTERNATIONAL AIRPORT HAT YAI INTERNATIONAL AIRPORT SUVARNABHUMI AIRPORT

Note: * Changing from Chiang Rai International Airport to Mae Fah Luang–Chiang Rai International Airport since March 13, 2010.

Airports in Thailand

5

Pai Surin Yala

% Share – BY AIRPORTS (FY 2018)

Suvarnabhumi Don Mueang Phuket Chiang Mai Hat Yai Chiang Rai (Flights)

% share

41.61 30.85 13.31 8.64 3.34 2.25

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45.02

(Passengers)

29.07 13.09 7.75 3.06 2.01

Sources of Revenue

7

Airport Revenues (FY2018)

Landing & Parking Charges 20% increased on Jan 1st, 2005 15% increased on Apr 1st, 2007 Departure Passenger Service Charges (PSC) Effective on Feb 1st, 2007 THB 500 to THB 700 - International PSC THB 50 to THB 100 - Domestic PSC Aircraft Service Charges 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 Office & State Property Rents Rental tenants include airline, government agencies and concession tenants. Rents are determined based

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

Service Varies by activities such as Utilities, Check-in Counter Services, Airline Announcement Services, Hydrant System Services, Advance Passenger Processing System (APPS), etc. Concession Varies by activities such as Duty Free, Souvenirs, Food & Beverage, Airline Catering, Fueling Services, Car Parking, Advertising, Banking, etc.

Aeronautical 56% Non-Aeronautical 44%

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12.07% 42.70% 1.38% 3.74% 12.51% 27.60%

Note: Fiscal Year starting from October to September Landing & Parking charges (LPC) Departure Passenger service charges (PSC) A/C Service charges (ASC) Office and state property rents (OPR) Service revenues (SVR) Concession revenues (CCR)

Revenues Breakdown (FY2018)

By Proportion

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Airport Operating Expenses

Employee Benefit Expenses Consisting of :

• employee salaries and bonuses, employee benefits, retirement

payments and contributions to employee provident fund .

• the remuneration of AOT’s board of directors and executives as

stated in the notice of Capital Market Supervisory Board. Utilities Expenses Consisting of electricity charges, cooling water system and water supply. Outsourcing Expenses Consisting of security, limousine service, cleaner, gardener, trolley, Advance Passenger Processing System (APPS), etc. Repairs and Maintenance Consisting 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. State Property Rental Consisting of rental payments made to the Ministry of Finance under the airport land leases. Depreciation and Amortization Consisting 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).

10

25.71% 9.56% 20.65% 9.13% 14.23% 20.72%

11

Expenses Breakdown (FY2018)

Employee Benefit expenses Utilities expenses Repairs and maintenance (R&M) State property rental (SPR) Depreciation and amortization (D&M) Outsourcing expenses

By Proportion

Note: Fiscal Year starting from October to September

Nationality Passenger Traffic (FY2018)

74.8% Asia Pacific

• +15.2% PAX Growth

15.9% Europe

• +3.3% PAX Growth

2.3% Middle East

• -3.0% PAX Growth

4.0% America

• +4.3% PAX Growth

0.7% Africa

• +5.2% PAX Growth

2.4% Oceania

• +0.1% PAX Growth

Source : Corporate Strategy Department, AOT

12

Chinese Traffic Movement (FY2015-2019)

Remarks :

• 1. Government measure after the boat sinking tour (July 2018)
• Free VOA for 21 countries including China, India, Taiwan and Eastern Europe from Nov 15, 2018 - Oct 31, 2019
• 2. Government measure after crackdown on "zero-dollar" Chinese (Sep 2016) (Effective from Dec 1, 2016 - Aug 31, 2017)
• Free Visa at Thai Embassy
• Reduce VOA for 21 countries from 2,000 THB to 1,000 THB

13

International Domestic

AOT Air Traffic FY2019 (7 months : Oct 18 – Apr 19)

AOT Passenger Growth 7 months of FY2019

+2.2%

86.43 million passengers AOT

+4.1%

• 0.3%

BKK

(+4.4%) 533,886

+3.0% +5.4% DMK +8.2%

• 2.1%

(+1.8%) 24.43 M

CNX HDY HKT CEI +25.2% +1.0%

(+6.6%) 7.07 M

• 9.5%
• 2.7%

(-3.3%) 2.45 M

• 1.5%
• 4.5%

(-2.8%) 11.29 M

+47.5% +3.7%

(+6.9%) 1.84 M

AOT Aircraft Growth 7 months of FY2019

+4.4%

533,886 flight AOT

International Domestic

Aircraft Share by Airport

+6.6% +1.9%

BKK CNX DMK HDY HKT CEI +5.4% +5.3%

(+5.4%) 224,174

+8.8% +24.4%

• 24.5%

+2.9% +53.8%

• 0.6%

+7.8%

• 1.1%

+0.2% +2.2%

(+2.7%) 161,208 (+12.3%) 49,795 (-3.8%) 16,109 (+1.7%) 70,024 (+6.5%) 12,576 (+2.2%) 86.43 M (+3.4%) 39.34 M

Passenger Share by Airport

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Suvarnabhumi Airport (BKK) Don Mueang International Airport (DMK) Chiang Mai International Airport (CNX) Phuket International Airport (HKT) Hat Yai International Airport (HDY) Mae Fah Luang-Chiang Rai International Airport (CEI)

Nationality Passenger Traffic (Oct 18- Apr 19)

Nationality % Change % Share

Chinese

• 3.24

24.25% Thai 11.12% 18.40% South Korean 6.86% 4.77% Indian 22.62% 4.38% Japanese 10.41% 4.37% Russian 3.14% 3.95% Malaysian 8.17% 3.19% American 6.57% 2.97% British 0.96% 2.49% Singaporean 1.85% 2.44%

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Financial Performance

(6M FY 2019)

11.90% 42.90% 1.33% 3.56% 12.58% 27.73% 11.90% 43.52% 1.31% 3.64% 12.52% 27.11% 2016 2017 2018 6M 2018 6M 2019

FY2016 FY2017 FY2018 6M FY18 6M FY19 YoY LPC 6,433.26 6,731.61 7,303.66 3,682.32 3,868.68 5.06% PSC 21,968.21 23,285.00 25,850.04 13,461.02 13,949.72 3.63% ASC 786.20 808.80 832.56 404.17 434.01 7.38% OPR 1,992.80 2,264.83 2,264.96 1,124.51 1,156.12 2.81% SVR 6,161.45 7,059.20 7,575.76 3,871.73 4,091.87 5.69% CCR 13,620.03 14,751.72 16,710.43 8,385.47 9,017.47 7.54% Total 50,961.95 54,901.16 60,537.41 30,929.22 32,517.87 5.14%

(Unit: Million Baht) (Unit: Million Baht)

6M FY2018 6M FY2019

Note: Fiscal Year starting from October to September Landing & Parking charges (LPC) Departure Passenger service charges (PSC) A/C Service charges (ASC) Office and state property rents (OPR) Service revenues (SVR) Concession revenues (CCR)

Revenues Breakdown (6M FY2019)

FY

30,929.22 50,961.95

Total Revenue By Proportion By Growth

54,901.16

17

60,537.41 32,517.87

24.70% 9.56% 21.51% 8.77% 14.81% 20.65% 23.79% 9.66% 21.95% 8.56% 15.04% 21.00% 2016 2017 2018 6M 2018 6M 2019

FY2016 FY2017 FY2018 6M FY18 6M FY19 YoY Employee 5,934.09 6,499.04 7,001.73 3,113.37 3,407.85 9.46% Utilities 2,562.26 2,520.66 2,603.19 1,263.73 1,319.94 4.45% Outsourcing 4,613.86 5,328.44 5,623.03 2,873.25 2,967.81 3.29% R&M 2,474.91 2,545.31 2,486.74 1,120.85 1,210.00 7.95% SPR 2,459.69 4,099.31 3,875.62 1,968.20 2,043.80 3.84% D&M 6,404.05 5,644.51 5,641.67 2,748.11 2,849.36 3.68% Total 24,448.86 26,637.27 27,231.98 13,087.51 13,798.76 5.43%

(Unit: Million Baht) (Unit: Million Baht)

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Expenses Breakdown (6M FY2019)

6M FY2018 6M FY2019

FY

13,087.51 24,448.86

Employee Benefit expenses Utilities expenses Repairs and maintenance (R&M) State property rental (SPR) Depreciation and amortization (D&M) Outsourcing expenses

26,637.27

Expenses By Proportion By Growth

27,231.98 13,798.76

(Unit: Million Baht)

Statements of Income (6M FY2019)

19 FY2016 FY2017 FY2018 6M FY2018 6M FY2019 YoY Total revenues 52,598.54 56,690.96 62,135.93 31,735.78 33,344.79 5.07% Revenues from sales or services 50,961.95 54,901.16 60,537.41 30,929.22 32,517.87 5.14% Other incomes 1,636.59 1,789.80 1,598.52 806.56 826.92 2.52% Total expenses 28,427.21 30,505.99 31,008.56 14,859.23 15,707.11 5.71% Profit before income tax expense 24,171.34 26,184.97 31,127.37 16,876.56 17,637.68 4.51% Income tax expense 4,820.92 5,445.40 5,902.71 3,351.32 3,585.52 6.99% Net Profit 19,318.31 20,683.60 25,170.76 13,489.28 14,022.13 3.95% EBIT 24,038.26 25,786.88 30,710.55 16,669.67 17,434.82 4.59% EBITDA 30,442.32 31,431.39 36,352.22 19,417.78 20,284.18 4.46%

Note : 1. The reversal of accrued property tax at DMK of Baht 3,059.17 million in FY2015

• 2. AOT received compensation for damages from flooding at DMK during the end of 2011 of Baht 100 million on September 2013

and Baht 464.83 million in the third quarter, 2016.

(As of Mar 29, 2019)

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30 Sep 2018 31 Mar 2019 Cash 8,602.10 5,587.47 Other Current Asset 68,465.99 65,925.16 Non Current Asset 110,640.46 109,631.36 Total Assets 187,708.55 181,143.99 Current Liabilities 23,202.73 19,273.58 Long Term Loan 13,684.89 11,976.83 Other Non Current Liabilities 6,551.81 6,392.59 Total Liabilities 43,439.43 37,643.00 Shareholder’s Equity 144,269.12 143,500.99 Total Liabilities & Shareholder’s Equity 187,708.55 181,143.99 Beginning Cash 8,602.10 Cash Flow from Operation 14,126.03 Cash Used in Investment 483.92 Cash Used in Financing (17,624.58) Ending Cash 5,587.47

(Unit: Million Baht) (Unit: Million Baht)

Financial Status

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CASH FLOW LONG-TERM LOANS

Total Loan (Million Yen) 199,243.00 Disbursed Amount (Million Yen) 194,409.73 Repayment Amount (Million Yen) (141,986.66) Outstanding Amount (Million Yen) 52,423.06 Outstanding Amount (Million Baht) 15,239.59 Hedged % of the remaining loan 99% Average Interest Rate 4.86%

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Financial Ratios

30 Sep 2015 (FY2015) 30 Sep 2016 (FY2016) 30 Sep 2017 (FY2017) 30 Sep 2018 (FY2018) 31 Mar 2019 (6M FY2019) Par Value (THB) 10.00 10.00 1.00* 1.00* 1.00* Market Price (THB) 281.00 399.00 59.00 65.50 68.00 BV/share 76.01 84.93 9.20 10.07 10.01 P/BV 3.70 4.70 6.42 6.50 6.80 EPS 13.11 13.70 1.45 1.76 0.98 P/E 21.43 29.12 40.69 37.22 37.78 D/E 0.47 0.42 0.35 0.30 0.26 ROA (%) 11.95 11.64 11.80 13.75 7.60 ROE (%) 18.22 16.97 16.45 18.29 9.78

Note : * Change in Par value of AOT’ share from 10 Baht per share to 1 Baht per share, effective since February 9, 2017.

AOT Investment Projects

(2017 - 2024)

Current = 10.81 MAP Capacity = 8.0 MAP Current = 18.26 MAP

Capacity = 6.5 MAP + 6 MAP = 12.5 MAP

(Complete 2017) Current = 4.27 MAP Capacity = 2.5 MAP Current = 2.81 MAP Capacity = 3.0 MAP Current = 62.81 MAP Capacity = 45.0 MAP

TOTAL

Current = 139.52 MAP (FY2018) Capacity = 83.5 MAP + 11.5 MAP + 6 MAP = 101 MAP (DMK) (HKT) Suvarnabhumi Airport & Don Mueang Int. Airport Mae Fah Luang Chiang Rai Int. Airport Hat Yai Int. Airport Phuket Int. Airport Chiang Mai Int. Airport Current = 40.56 MAP Capacity = 18.5 MAP + 11.5 MAP = 30 MAP

(Complete 2016)

AOT Performance FY2018

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2038 2039 2040 2041

Airport Investment Projects

101 116 151.5 171.5

BKK Phase 2 = 62.50 Billion (2017 – 2020) BKK Terminal 2 = 42.08 Billion (2019 – 2022) DMK Phase 3 = 37.59 Billion (2020-2024) HKT Phase 2 = 6.21 Billion (2020 – 2022)

CNX Phase 1 = 15.82 Billion (2020 – 2023)

AOT Investment Projects 186 Billion (2017 – 2024) Capacity 171.5 MAP

161.5

BKK 3rd Runway = 21.80 Billion (2019 – 2021)

24

AOT Airports Network

Acquisition of Four Regional Airports Two New Airports

1

Udon Thani International Airport Sakon Nakhorn Airport Chumpon Airport Tak Airport

2 3 4

Chiang Mai Airport 2

2 1

Phuket Airport 2 AOT Future Airport

Lampa pang

Phuket Airport 2 Chiang Mai Airport 2 Chumpon Airport Tak Airport Udon Thani Airport Sakon Nakhorn Airport Phuket International Airport Hat Yai International Airport Don Mueang International Airport Suvarnabhumi International Airport Chiang Mai International Airport Mae Fah Luang -Chiang Rai International Airport AOT Airport AOT Future Airport 25

Key Development on Non - Aeronautical Business

Airport City at BKK airport Certify Hub Digital Platform Subsidiary Company

• Ground Service Equipment (AOTGA) : AOT 49%

26

Thank You