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

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 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.

3 Market Overview : International Visitor Arrival to Thailand Airline Industry Trend (6M-17) Global APAC RPK +8% +11% ASK +6% +8% Fare* -5% n.a. International Visitor Arrival to Thailand *Remarks : May-Jun 2017 Data Source : IATA (All Modes of Transportation) Unit: Million %Change +14% +9% (6M2016 vs 6M2017) 37.2 Region 32.6 Bangkok 29.9 IVA* to Thailand Airways +4% +12% APAC + Australasia +3% +3% 17.3 16.6 China -4% +43% 14.8 Europe + ME +8% +12% Grand Total +4% +4% *Remarks : IVA = International Visitor Arrival Source : Department of Tourism Y2015 Y2016 1H15 1H16 1H17 Y2017E Source : Department of Tourism Y2013-Jan-Jun2017 Fiscal Policy Office, Y2016-Y2017

4 Operating Statistics 2Q & 6M 2017 Passenger (Thousand) RASK (THB/ASK) Consol. Revenue (MB) 1,295 2,918 2.92 3.34 5,982 13,451 (+5%) (+4%) (-12%) (-14%) (-1%) (-3%) 2Q-16 : 1,239 2Q-16 : 1,239 6M-16 : 2,819 6M-16 : 2,819 2Q-16 : 3.33 2Q-16 : 3.33 6M-16 : 3.89 6M-16 : 3.89 2Q-16 : 6,055 2Q-16 : 6,055 6M-16 : 13,830 6M-16 : 13,830 RPK (Mil. Seat-Km.) CASK (THB/ASK) EBITDAR (MB) 1,026 2,258 3.36 3.36 411 2,402 (+8%) (+8%) (+5%) (+3%) (-65%) (-40%) 2Q-16 : 946 6M-16 : 2,100 2Q-16 : 3.20 6M-16 : 3.25 2Q-16 : 1,163 6M-16 : 4,013 ASK (Mil. Seat-Km.) Unit Margin (THB/ASK) Net Profit (MB) 1,637 3,364 (0.45) (0.02) (521) 44 (+12%) (+12%) (-446%) (-103%) (-365%) (-97%) 2Q-16 : 1,466 6M-16 : 3,017 2Q-16 : 0.13 6M-16 : 0.64 2Q-16 : (112) 6M-16 : 1,463

5 1 3 Airport Related Services at BKK Airport

6 BAC : Starts to Operate Catering in Phuket 2,600 35.0% 2,400 29.6% 29.2% 28.8% 2,200 30.0% 2,000 25.9% 25.2% 1,800 1,456 1,456 1,600 25.0% 1,400 20.5% 1,200 20.0% 1,000 795 709 800 432 419 600 352 323 15.0% 285 276 260 250 207 205 400 133 133 81 72 48 42 200 0 10.0% 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) BAC Key Highlight : 6M-2017  Developments : 25%  BA holds 90% in BAC 1. BAC Phuket – Starts operation in July 2017 Others 75%  No. of airline customer = 21 (Capacity : 2,140 Meals/Day)  Market Share Meal Uplift : 5.3 Million (+4%YoY) 2. Gourmet Primo – Expected to operate in 4Q2017  AVG Meal per day : 29,128 Meals (+4%YoY) 3. BAC Chiang Mai – Expected to operate in Y2018 BAC-BKK Major Customers : BAC-Phuket Current Airline Customers :

7 BFS Ground : Steady Growth with Strong Performance 2,600 25.0% 2,400 19.8% 2,200 18.6% 20.0% 17.3% 16.9% 2,000 16.4% 1,800 14.3% 1,600 15.0% 1,400 1,200 10.0% 1,000 800 568 600 405 5.0% 305 255 244 215 400 201 148 146 117 123 117 95 97 101 53 52 200 0 0.0% 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Major Customers : 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  Other Net Profit +14%YoY BFS New Customers : 44% Ground 56% Market Share

8 BFS Cargo : Strong Profit from New Services & Pricing Adjustment 2,600 48.0% 50.0% 47.0% 2,400 46.1% 48.0% 45.2% 2,200 46.0% 43.8% 2,000 42.9% 1,702 44.0% 1,800 1,568 1,600 42.0% 1,400 40.0% 1,200 917 38.0% 812 1,000 773 672 800 36.0% 527 464 465 444 430 411 405 600 355 34.0% 300 235 223 225 225 400 185 156 124 32.0% 200 0 30.0% 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 6M-2017 Major Customers :  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 BFS Other New Customers : Cargo 51% 49% Market Share

9 2 Boutique Airlines

10 Fare Pressure due to high competition affected Revenue +6% Passenger Revenue Unit: MB & %Proportion 20,761 19,517 7% -2% 6% 24% 10,661 26% 10,398 -1% 22% 22% 4,382 4,357 6% 6% 25% 25% 8% 8% 47% 22% 46% 20% 23% 24% 22% 19% 47% 49% 47% 49% 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Samui Indochina Domestic (excl. Samui & Indochina) International (Others) 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)

11 International Point of Sale (POS) was main Revenue Contribution Thailand Only Top 3 Europe POS (6M-17) Europe + Middle East 2Q-17 : 18% (-5%YoY)  UK 2Q-17 : 27% (+7%YoY)  Germany 6M-17 : 16% (-9%YoY) 6M-17 : 25% (+3%YoY)  France Top 3 Asia POS (6M-17)  China  Cambodia  Hong Kong www.bangkokair.com APAC + Australasia (exclude Thailand) 2Q-17 : 20% (-5%YoY) 2Q-17 : 30% (-4%YoY) 6M-17 : 19% (-8%YoY) 6M-17 : 28% (-4%YoY) >70% Booking from Abroad

12 Reach more passengers through Codeshare Partners % of Passenger Revenue (Codeshare & Interline) New Codeshare Partners in Y2017 Unit: % 23% 23% 23% 22% 21% 20% Non Alliances 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Codeshare Partners : Currently 23 partners  Hub: Hong Kong Int’l Airport  Parent: Hainan Air  Fleets: 33 Aircrafts  Destination Network: Cover >30 Cities in Asia Interline Partners Updates : Currently 70+ partners Top Interline Partners (Passenger Revenue Contribution)

13 Tapped Chinese FITs through Direct Flights & Interline Partners  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 Interline Partners from China 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 % 2Q-16 2Q-17 6M-16 6M-17 Passenger Revenue from Point of Sales in China 4 % 6 % 5% 7% *Source: Department of Tourism

14 Network Plan to Capture Demand & China Market Capture More Demand Bangkok-Danang 4  7 Flights Weekly Chiang Mai-Mae Hong Son 10  14 Flights Weekly 1Q-17 Increase Chiang Mai-Mandalay 4  7 Flight Weekly Frequency Bangkok-Chiang Mai 7  8 Flights Daily Bangkok-Vientiane* 7  14 Flights Weekly Y2017 Chiang Mai-Samui 1  2 Flights Daily China Market Samui-Chengdu 4 Flights Weekly 3Q-16 Current 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

15 Fleet Status & Plan Average of 3-4 aircrafts per year 39 38 34 31 ATR 72-600 4 7 9 9 7-FL 9-FL 9-FL ATR 72-500 8 6 6 6 6-Owned 6-Owned 6-Owned A320 8 9 9 9 9-OL 9-OL 9-OL A319 11 12 14 15 14-OL 15-OL 12-OL FL = Financial Lease 2015 2016 Aug-17 2017E OL = Operating Lease ATR72-500 Airbus A320 ATR72-600 Airbus A319

16 Advanced Booking +5%YoY Advanced Booking Traveling within 2H2017 : Segmented by Region Other - International 3% Others - Domestic Samui - Myanmar Domestic 38% 5% 35% Vietnam 2% Samui Indochina 17% 42% Samui - Cambodia International 8% Laos 7% 2%

17 3 Own & Operate 3 Resort-Style Airports

18 Create Strategic Route Network Through Boutiques Airports Samui Airport Update : Samui Passengers (All Airlines)  Approved to operate 50 flights per day* Unit: Thousand +14%  Submitted EIA report to Office of Natural Resources & 2,234 2,554 +2% Environmental Policy and Planning for 70+ flights approval -2% *Approved by CAAT in November 2014 1,292 1,317 730 718 AVG Flight/Day Y2015 Y2016 Y2017E 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 All Airlines 38 40 42 Sukhothai Passengers Unit: Thousand BA only 32 34 37 +38% 74 +24% Other Airlines AVG Flight/Day 54 +13% 40 2 32 16 18 2 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016 Scheduled Charter 1 Trat Passengers Unit: Thousand +24% 91 -1% 73 49 48 -3% 18 17 2Q-16 2Q-17 6M-16 6M-17 Y2015 Y2016

19 Financial Highlight