Bangkok Airways 3Q-2017 2 Disclaimer Information contained in our - PowerPoint PPT Presentation

Bangkok Airways 3Q-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 International Visitor Arrival to Thailand International Visitor Arrival Comparison (All Modes of Transportation) Unit: Million +9% %Change +9% 9M16 vs 9M17 35.4 Region 32.6 +5% +12% Bangkok 29.9 IVA* to Thailand 26.1 Airways 24.8 22.1 APAC + Australasia +5% +6% China +1% +57% Europe + ME +6% +13% *Remarks : IVA = International Visitor Arrival Source : Department of Tourism Y2015 Y2016 9M15 9M16 9M17 Y2017E Source : Department of Tourism Y2013-Jan-Sep2017 Fiscal Policy Office, Y2016-Y2017

4 Operating Statistics 3Q & 9M 2017 Passenger (Thousand) RASK (THB/ASK) Consol. Revenue (MB) 1,527 4,445 3.35 3.34 6,871 20,252 (+7%) (+5%) (-10%) (-13%) (+3%) (-1%) 2Q-16 : 1,239 3Q-16 : 1,428 6M-16 : 2,819 9M-16 : 4,247 2Q-16 : 3.33 3Q-16 : 3.74 6M-16 : 3.89 9M-16 : 3.84 2Q-16 : 6,055 3Q-16 : 6,698 6M-16 : 13,830 9M-16 : 20,528 RPK (Mil. Seat-Km.) CASK (THB/ASK) EBITDAR (MB) 1,196 3,453 3.51 3.40 1,057 3,459 (+12%) (+9%) (+6%) (+4%) (-39%) (-40%) 3Q-16 : 1,070 9M-16 : 3,169 3Q-16 : 3.30 9M-16 : 3.26 3Q-16 : 1,745 9M-16 : 5,758 ASK (Mil. Seat-Km.) Unit Margin (THB/ASK) Net Profit (MB) 1,723 5,088 (0.16) (0.06) (142) (98) (+13%) (+12%) (-136%) (-110%) (-121%) (-105%) 3Q-16 : 1,522 9M-16 : 4,540 3Q-16 : 0.45 9M-16 : 0.58 3Q-16 : 681 9M-16 : 2,144

5 1 3 Airport Related Services at BKK Airport

6 BAC : Starts to Operate Catering in Phuket 2600 35.0% 2400 30.0% 29.6% 29.5% 28.8% 2200 30.0% 26.6% 2000 26.1% 1800 1,456 1,456 1600 25.0% 1,186 1400 1,070 1200 20.0% 1000 800 432 419 392 360 600 316 310 285 260 276 250 15.0% 202 200 400 108 104 69 67 200 0 10.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) BAC Key Highlight : 9M-2017  Developments : 25%  BA holds 90% in BAC 1. BAC Phuket – Starts operation in July 2017 Others 75%  No. of airline customer = 24 (+5YoY) (Capacity : 2,140 Meals/Day)  Market Share Meal Uplift : 7.9 Million (+3%YoY) 2. Gourmet Primo – Starts operation in October 2017  AVG Meal per day : 28,750 Meals (+3%YoY) 3. BAC Chiang Mai – Expected to operate in Y2019 Gourmet Primo Customers : BAC-BKK Major Customers : BAC-Phuket Customers : Lounge Bakery

7 Update : New Catering Facilities Bangkok Air Catering at Phuket Gourmet Primo “Specialist Manufacturer of the Highest Quality Semi- Finished Food Products”

8 BFS Ground : Steady Growth with Strong Performance 2,600 2,383 25.0% 2,400 2,130 2,200 18.4% 17.6% 1,854 17.3% 20.0% 2,000 1,732 15.7% 15.6% 1,800 14.3% 1,600 15.0% 1,400 1,200 10.0% 1,000 614 800 565 405 600 340 305 303 5.0% 255 199 201 400 166 146 117 117 88 96 101 43 51 200 0 0.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Major Customers : Key Highlight : 9M-2017  BA holds 98.88% in BFS Ground  No. of customer = 74 (+4YoY)  The first & only ISAGO certified operator in BKK airport  No. of flights serviced : 50,990 Flights (+10%YoY)  Revenue +7%YoY  Other Net Profit +20%YoY BFS New Customers : 44% Ground 56% Market Share

9 BFS Cargo : Strong Profit from New Services & Pricing Adjustment 48.0% 2,600 50.0% 47.3% 2,400 46.1% 48.0% 2,200 44.3% 44.0% 46.0% 2,000 42.9% 1,702 44.0% 1,568 1,800 1,397 1,600 42.0% 1,229 1,400 40.0% 1,200 38.0% 773 1,000 672 661 800 540 36.0% 527 480 465 461 444 418 405 600 359 34.0% 230 225 225 185 400 162 123 32.0% 200 0 30.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 9M-2017 Major Customers :  BA holds 49% in BFS Cargo  No. of customer = 67 (+3YoY)  The first & only ISAGO certified operator in BKK airport  Revenue +14%YoY  Net Profit +29%YoY BFS Other New Customers : Cargo 51% 49% Market Share

10 2 Boutique Airlines

11 Fare Pressure due to high competition affected Revenue Passenger Revenue +6% Unit: MB & %Proportion 20,761 -2% 19,517 7% 6% 20,761 15,819 15,581 19,517 24% +0.5% 26% 6% 7% 15,892 15,581 24% 22% 24% 22% 5,158 5,182 21% 18% 6% 6% 22% 47% 23% 46% 5,232 51% 18% 5,182 49% 16% 54% 55% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Samui Indochina Domestic (excl. Samui) International (Others) Key Highlight : All Routes (9M-2017)  Passenger Revenue : -2%YoY  Average Fare : -6%YoY due to high competition (Especially Indochina)  Passenger : +5YoY

12 International Point of Sale (POS) represent 67% of Passenger Revenue Thailand Only Top 3 Europe POS (9M-17) Europe + Middle East 3Q-17 : 19% (-5%YoY) (Includes Russia)  UK 3Q-17 : 30% (+6%YoY) 9M-17 : 19% (-8%YoY)  Germany  9M-17 : 28% (+6%YoY) France Top 3 Asia POS (9M-17)  China  Cambodia  Hong Kong www.bangkokair.com APAC + Australasia (exclude Thailand) 3Q-17 : 18% (-7%YoY) 3Q-17 : 28% (-4%YoY) 9M-17 : 19% (-8%YoY) 9M-17 : 29% (0%YoY) >70% Booking from Abroad

13 Reach more Passengers through Codeshare Partners % of Passenger Revenue (Codeshare & Interline) New Codeshare Partners in Y2017 Unit: % 23% 23% 23% 22% 21% 20% Non Alliance 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Newest Codeshare Partners  Hub: Noi Bai International Airport (Hanoi) & Tan Son Nhat International Airport (Ho Chi Minh)  Fleets: 84 Aircrafts  Destination Network: 52 Destinations in 17 Countries  Alliance Member: Skyteam 70+ Interline Partners Top Interline Partners (Passenger Revenue Contribution)

14 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  Potential growth by increasing both passenger & revenue from China POS , while Market slightly increased %Change 3Q16 vs 17 9M16 vs 17 Chinese Visitors to Thailand* + 11 % +1 % Bangkok Airways + 25 % + 56 % 3Q16 3Q17 9M16 9M17 Passenger Revenue from Point of Sales in China 6 % 8 % 5% 8% *Source: Department of Tourism

15 Network Plan to Capture Demand & China Market Capture 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 Y2017 Chiang Mai-Samui 1  2 Flights Daily China Market Samui-Chengdu 4 Flights Weekly 3Q-16 Current Samui-Guangzhou Daily Flight 1Q-17 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

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

17 Advanced Booking +13%YoY Advanced Booking Traveling within 1Q2018 : Segmented by Region Other - International 2% Others - Domestic Samui- Myanmar 41% Domestic 27% 81% Vietnam 13% Samui 38% Samui- Cambodia Indochina Int’l 48% Laos 18% 19% 12%

18 3 Own & Operate 3 Resort-Style Airports

19 Create Strategic Route Network Through Boutiques Airports Samui Airport Update : Samui Passengers (All Airlines)  Approved to operate 50 flights per day* Unit: Thousand +14%  +2% Submitted EIA report to Office of Natural Resources & 2,554 2,234 2,008 2,049 Environmental Policy and Planning for 70+ flights approval +2% *Approved by CAAT in November 2014 716 732 AVG Y2015 Y2016 Y2017E 1H2018E 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Flight/Day Sukhothai Passengers All Airlines 38 40 41 42 Unit: Thousand BA only 32 34 36 37 +38% +17% 74 Other Airlines AVG Flight/Day 60 54 +5% 52 2 20 21 2 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Scheduled Charter 1 Trat Passengers Unit: Thousand +24% -0.5% 91 73 64 64 +2% 15 16 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

20 New Development – Subject to Regulatory Approval  New Aircraft Maintenance Facility at Sukhothai Airport  New Airport Development in Domestic & International  New Catering Facility at Chiang Mai Airport (Expected Y2018)  Samui Renovation Project : Expect to finalize design plan by 4Q-17

21 Financial Highlight