Bangkok Airways 2Q-2017 2 Disclaimer Information contained in our - - PowerPoint PPT Presentation

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Bangkok Airways 2Q-2017 2 Disclaimer Information contained in our - - PowerPoint PPT Presentation

Oct 24, 2022 109 likes •371 views

Bangkok Airways 2Q-2017 2 Disclaimer Information contained in our presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material

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Bangkok Airways

2Q-2017

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SLIDE 2

Information contained in our presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected.

Disclaimer

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SLIDE 3

Market Overview : International Visitor Arrival to Thailand

International Visitor Arrival to Thailand

(All Modes of Transportation)

Source : Department of Tourism Y2013-Jan-Jun2017 Fiscal Policy Office, Y2016-Y2017

Unit: Million

*Remarks : IVA = International Visitor Arrival Source : Department of Tourism

APAC + Australasia +3% +3% China

  • 4%

+43% Europe + ME +8% +12%

Grand Total +4% +4%

IVA* to Thailand Bangkok Airways %Change (6M2016 vs 6M2017) Region

29.9 32.6 14.8 16.6 17.3 37.2 Y2015 Y2016 1H15 1H16 1H17 Y2017E

+9% +12% +4% +14%

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Global APAC RPK +8% +11% ASK +6% +8% Fare*

  • 5%

n.a. Airline Industry Trend (6M-17)

*Remarks : May-Jun 2017 Data Source : IATA

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SLIDE 4

Operating Statistics 2Q & 6M 2017

1,295 (+5%)

2Q-16 : 1,239

1,026 (+8%)

2Q-16 : 946

1,637 (+12%)

2Q-16 : 1,466

2,918 (+4%)

6M-16 : 2,819

2,258 (+8%)

6M-16 : 2,100

3,364 (+12%)

6M-16 : 3,017

Passenger (Thousand) RPK (Mil. Seat-Km.) ASK (Mil. Seat-Km.) 2.92 (-12%)

2Q-16 : 3.33

3.36 (+5%)

2Q-16 : 3.20

(0.45) (-446%)

2Q-16 : 0.13

3.34 (-14%)

6M-16 : 3.89

3.36 (+3%)

6M-16 : 3.25

(0.02) (-103%)

6M-16 : 0.64

RASK (THB/ASK) CASK (THB/ASK) Unit Margin (THB/ASK) 5,982 (-1%)

2Q-16 : 6,055

411 (-65%)

2Q-16 : 1,163

(521) (-365%)

2Q-16 : (112)

13,451 (-3%)

6M-16 : 13,830

2,402 (-40%)

6M-16 : 4,013

44 (-97%)

6M-16 : 1,463

  • Consol. Revenue (MB)

EBITDAR (MB) Net Profit (MB)

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2Q-16 : 1,239 6M-16 : 2,819 2Q-16 : 3.33 6M-16 : 3.89 2Q-16 : 6,055 6M-16 : 13,830

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3 Airport Related Services at BKK Airport

1

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BAC : Starts to Operate Catering in Phuket

Key Highlight : 6M-2017

  • BA holds 90% in BAC
  • No. of airline customer = 21
  • Meal Uplift : 5.3 Million (+4%YoY)
  • AVG Meal per day : 29,128 Meals (+4%YoY)

BAC-BKK Major Customers :

BAC 25% Others 75% Market Share 6

  • Developments :

1. BAC Phuket – Starts operation in July 2017 (Capacity : 2,140 Meals/Day) 2. Gourmet Primo – Expected to operate in 4Q2017 3. BAC Chiang Mai – Expected to operate in Y2018 BAC-Phuket Current Airline Customers :

323 352 709 795 1,456 1,456 81 72 207 205 432 419 48 42 133 133 285 276 260 250 25.2% 20.5% 29.2% 25.9% 29.6% 28.8%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

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BFS Ground : Steady Growth with Strong Performance

Key Highlight : 6M-2017

  • BA holds 98.88% in BFS Ground
  • No. of customer = 72 (+1 Airline)
  • The first & only ISAGO certified operator in BKK airport
  • No. of flights serviced : 33,893 Flights (+9%YoY)
  • Revenue +6%YoY
  • Net Profit +14%YoY

Major Customers : New Customers :

BFS Ground 56% Other 44% Market Share 7 568 95 97 215 244 305 405 53 52 123 148 146 255 117 117 101 201 16.9% 16.4% 18.6% 19.8% 14.3% 17.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

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SLIDE 8

BFS Cargo : Strong Profit from New Services & Pricing Adjustment

Key Highlight : 6M-2017

  • BA holds 49% in BFS Cargo
  • No. of customer = 65 (+1 Airline)
  • The first & only ISAGO certified operator in BKK airport
  • Revenue +13%YoY
  • Net Profit +27%YoY

Major Customers : New Customers :

BFS Cargo 49% Other 51% Market Share 8 411 464 812 917 1,568 1,702 185 223 355 430 672 773 124 156 235 300 444 527 225 225 405 465 45.2% 48.0% 43.8% 47.0% 42.9% 46.1%

30.0% 32.0% 34.0% 36.0% 38.0% 40.0% 42.0% 44.0% 46.0% 48.0% 50.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

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Boutique Airlines

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2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

Fare Pressure due to high competition affected Revenue

Passenger Revenue

Unit: MB & %Proportion

Key Highlight : All Routes (6M-2017)

  • Passenger Revenue : -2%YoY (Mainly from Indochina)
  • Average Fare : -6%YoY due to high competition
  • Passenger : +4%YoY (All routes)

4,382 4,357 10,661 10,398 19,517 20,761

47% 22% 23% 8% 49% 19% 24% 8% 47% 22% 25% 6% 49% 20% 25% 6% 46% 22% 26% 6% 47% 22% 24% 7% +6%

  • 1%
  • 2%

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Samui Indochina Domestic (excl. Samui & Indochina) International (Others)

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SLIDE 11

International Point of Sale (POS) was main Revenue Contribution

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Europe + Middle East

2Q-17 : 27% (+7%YoY) 6M-17 : 25% (+3%YoY)

APAC + Australasia

(exclude Thailand)

2Q-17 : 30% (-4%YoY) 6M-17 : 28% (-4%YoY)

Thailand Only

2Q-17 : 18% (-5%YoY) 6M-17 : 16% (-9%YoY)

www.bangkokair.com

2Q-17 : 20% (-5%YoY) 6M-17 : 19% (-8%YoY)

>70% Booking from Abroad

Top 3 Europe POS (6M-17)

  • UK
  • Germany
  • France

Top 3 Asia POS (6M-17)

  • China
  • Cambodia
  • Hong Kong
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SLIDE 12

22% 21% 23% 23% 20% 23%

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

Reach more passengers through Codeshare Partners

Codeshare Partners : Currently 23 partners

  • Hub: Hong Kong Int’l Airport
  • Parent: Hainan Air
  • Fleets: 33 Aircrafts
  • Destination Network: Cover >30 Cities in Asia

% of Passenger Revenue (Codeshare & Interline)

Interline Partners Updates : Currently 70+ partners Top Interline Partners (Passenger Revenue Contribution)

Unit: %

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New Codeshare Partners in Y2017

Non Alliances

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SLIDE 13

Tapped Chinese FITs through Direct Flights & Interline Partners

*Source: Department of Tourism

  • BA’s direct flights from Samui to China :
  • Samui-Chengdu started in July 2016
  • Samui-Guangzhou started in January 2017
  • Samui-Chongqing started in July 2017

have potential growth by increasing both passenger & revenue from China POS, while Market drops

%Change 2Q-16 vs 17 6M-16 vs 17 Chinese Visitors to Thailand* +0.1%

  • 4%

Bangkok Airways +59% +43%

Passenger Revenue from Point of Sales in China

2Q-16 2Q-17 6M-16 6M-17 4% 6% 5% 7%

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Interline Partners from China

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SLIDE 14

Network Plan to Capture Demand & China Market

Capture More Demand

Increase Frequency

Bangkok-Danang 4  7 Flights Weekly 1Q-17 Chiang Mai-Mae Hong Son 10  14 Flights Weekly Chiang Mai-Mandalay 4  7 Flight Weekly Bangkok-Chiang Mai 7  8 Flights Daily Y2017 Bangkok-Vientiane* 7  14 Flights Weekly Chiang Mai-Samui 1  2 Flights Daily

China Market

Current

Samui-Chengdu 4 Flights Weekly 3Q-16 Samui-Guangzhou Daily Flight 1Q-17

New Route Samui-Chongqing 3 Flights Weekly

July 17

First Move to Untried & Unfound Destinations

New Route Phu Quoc in Vietnam 4 Flights Weekly (Oct 2017)

Y2017

*Subjected to Government Approval 14

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Fleet Status & Plan

Average of 3-4 aircrafts per year

6-Owned 7-FL 9-OL 12-OL 6-Owned 9-FL 9-OL 14-OL 6-Owned 9-FL 9-OL 15-OL

ATR 72-600 4 7 9 9 ATR 72-500 8 6 6 6 A320 8 9 9 9 A319 11 12 14 15 2015 2016 Aug-17 2017E

31 34 38 39

FL = Financial Lease OL = Operating Lease

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Airbus A319 Airbus A320 ATR72-600 ATR72-500

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Advanced Booking

Advanced Booking Traveling within 2H2017 : Segmented by Region

Samui-

Domestic

35%

Cambodia

8%

Myanmar

5%

Vietnam

2%

Samui-

International

7%

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Samui 42% Indochina 17% Others - Domestic 38% Other - International 3%

Laos

2%

+5%YoY

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SLIDE 17

Own & Operate 3 Resort-Style Airports

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18 17 49 48 73 91

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

16 18 32 40 54 74

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

730 718 1,292 1,317 2,234 2,554

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

Samui Airport Update :

  • Approved to operate 50 flights per day*
  • Submitted EIA report to Office of Natural Resources &

Environmental Policy and Planning for 70+ flights approval

Create Strategic Route Network Through Boutiques Airports

Other Airlines AVG Flight/Day 2 2 Scheduled Charter 1

*Approved by CAAT in November 2014

AVG Flight/Day Y2015 Y2016 Y2017E All Airlines 38 40 42 BA only 32 34 37

Samui Passengers (All Airlines)

Unit: Thousand

Sukhothai Passengers

Unit: Thousand

Trat Passengers

Unit: Thousand

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+13% +24% +38% +24%

  • 3%
  • 1%

+14%

  • 2%

+2%

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SLIDE 19

Financial Highlight

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1,163 411 4,013 2,402 5,293 6,570 (112) (521) 1,463 44 1,849 1,837 20.6% 7.3% 30.2% 18.4% 22.0% 25.3%

0% 5% 10% 15% 20% 25% 30% 35% 40%

  • 1,000
  • 500
  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 EBITDAR Net Profit EBITDAR Margin

17% 19% 16% 20% 24% 16% 15% 14% 16% 14% 12% 16% 9% 9% 9% 10% 9% 9% 17% 15% 17% 16% 17% 17% 16% 16% 16% 15% 15% 17% 25% 26% 25% 25% 23% 25%

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

Fuel AC Maintenance AC Lease Passenger Service Salary & Wages Others

4,345 4,259 10,484 10,182 19,104 20,431

801 899 1,680 1,882 3,148 3,415 909 825 1,667 1,388 2,651 2,920 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

Passenger Sales & Services Others

Financial Overview

Revenue EBITDAR & Net Profit

Unit: MB & EBITDAR Margin (%)

Major Expenses (% of COGS)

Unit: % Unit: MB

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26,766 24,903 +7%

  • 3%
  • 1%

13,452 13,831 5,983 6,055

506 Additional Corporate Income Tax (one off)

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3.2 3.36 3.25 3.36 3.30 3.36

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

RASK vs CASK & Unit Margin

CASK Fuel

RASK (THB per ASK) CASK (THB per ASK)

Salary & Wage Maintenance

Cost per ASK (6M-16 vs 6M-17)

  • Fuel : +28%YoY
  • Maintenance : -21%YoY

Unit Margin RASK-CASK (THB per ASK)

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3.33 2.92 3.89 3.34 3.60 3.69

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

0.13 (0.44) 0.64 (0.02) 0.30 0.33

2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 0.49 0.51 0.46 0.50 0.50 0.62 0.47 0.50 0.48 0.50 0.50 0.52 0.48 0.64 0.44 0.52 0.47 0.75 0.38 0.52

Passenger Service Fee

0.52 0.50 0.48 0.53

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Effective Fuel Hedging

Hedging Policy 50-70% of Fuel Consumption

*Indicative price provided by PTT as of 26th June 2017 23

30.000 35.000 40.000 45.000 50.000 55.000 60.000 65.000 70.000 Jan/17 Feb/17 Mar/17 Apr/17 May/17 Jun/17 Jul/17 Aug/17 Sep/17 Oct/17 Nov/17 Dec/17 Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

  • Avg. MOPS

BA's fuel price Hedged cost (LHS) Indicative price % Hedged (RHS)

2017 1Q 2Q 3Q 4Q 1Q 2Q Hedge Ratio 53% 61% 65% 65% 65% 66% Average Hedge Cost 59 60 61 65 65 65 Average Hedge Cost Average Effective Cost 62 61 60 62 63 63 Average Effective Cost 61 61 BA 2018 65 63

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SLIDE 23

Thank You

Email: ir@bangkokair.com

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SLIDE 24

Appendix: News Update

Skytrax Awards :

  • World Best Regional Airline 2017
  • Best Regional Airline in Asia 2017

Smart Travel Asia Awards :

  • Top 10 Airlines Worldwide 2017
  • Top 10 Airlines Cabin Service Worldwide 2017
  • Top 10 Airports Worldwide for Samui Airport 2017

Air Transport Award :

  • Best Full-Service Boutique Airline – APAC 2017

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Boutique Airline

  • Lounges for all

passengers

  • Meals on board
  • Unique network

covering 25+ tourist destinations Own & Operate 3 Resort Style Airports

  • Samui
  • Sukhothai
  • Trat

3 Airport Related Services at BKK Airport

  • Catering Service
  • Ramp & Ground

Service

  • Cargo Terminal

Strategic Investment

  • 7.83% in BDMS
  • 33.03% in SPF

Appendix: 4 Key Components to Support Sustainable Growth

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