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

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

Feb 19, 2023 331 likes •609 views

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

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Bangkok Airways

3Q-2017

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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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Market Overview : International Visitor Arrival to Thailand

International Visitor Arrival to Thailand

(All Modes of Transportation)

Source : Department of Tourism Y2013-Jan-Sep2017 Fiscal Policy Office, Y2016-Y2017

Unit: Million

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

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29.9 32.6 22.1 24.8 26.1 35.4

Y2015 Y2016 9M15 9M16 9M17 Y2017E

+9% +12% +5% +9%

IVA* to Thailand Bangkok Airways APAC + Australasia +5% +6% China +1% +57% Europe + ME +6% +13% %Change 9M16 vs 9M17 Region

International Visitor Arrival Comparison

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Operating Statistics 3Q & 9M 2017

1,527 (+7%)

2Q-16 : 1,239

1,196 (+12%)

3Q-16 : 1,070

1,723 (+13%)

3Q-16 : 1,522

4,445 (+5%)

6M-16 : 2,819

3,453 (+9%)

9M-16 : 3,169

5,088 (+12%)

9M-16 : 4,540

Passenger (Thousand) RPK (Mil. Seat-Km.) ASK (Mil. Seat-Km.) 3.35 (-10%)

2Q-16 : 3.33

3.51 (+6%)

3Q-16 : 3.30

(0.16) (-136%)

3Q-16 : 0.45

3.34 (-13%)

6M-16 : 3.89

3.40 (+4%)

9M-16 : 3.26

(0.06) (-110%)

9M-16 : 0.58

RASK (THB/ASK) CASK (THB/ASK) Unit Margin (THB/ASK) 6,871 (+3%)

2Q-16 : 6,055

1,057 (-39%)

3Q-16 : 1,745

(142) (-121%)

3Q-16 : 681

20,252 (-1%)

6M-16 : 13,830

3,459 (-40%)

9M-16 : 5,758

(98) (-105%)

9M-16 : 2,144

  • Consol. Revenue (MB)

EBITDAR (MB) Net Profit (MB)

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3Q-16 : 1,428 9M-16 : 4,247 3Q-16 : 3.74 9M-16 : 3.84 3Q-16 : 6,698 9M-16 : 20,528

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3 Airport Related Services at BKK Airport

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BAC : Starts to Operate Catering in Phuket

Key Highlight : 9M-2017

  • BA holds 90% in BAC
  • No. of airline customer = 24 (+5YoY)
  • Meal Uplift : 7.9 Million (+3%YoY)
  • AVG Meal per day : 28,750 Meals (+3%YoY)

BAC-BKK Major Customers :

BAC 25% Others 75% Market Share

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  • Developments :

1. BAC Phuket – Starts operation in July 2017 (Capacity : 2,140 Meals/Day) 2. Gourmet Primo – Starts operation in October 2017 3. BAC Chiang Mai – Expected to operate in Y2019 BAC-Phuket Customers :

360 392 1,070 1,186 1,456 1,456 108 104 316 310 432 419 69 67 202 200 285 276 260 250 30.0% 26.6% 29.5% 26.1% 29.6% 28.8%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

Gourmet Primo Customers :

Lounge Bakery

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Update : New Catering Facilities

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

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BFS Ground : Steady Growth with Strong Performance

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
  • Net Profit +20%YoY

Major Customers : New Customers :

BFS Ground 56% Other 44% Market Share

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565 614 1,732 1,854 2,130 2,383 88 96 303 340 305 405 43 51 166 199 146 255 117 117 101 201 15.6% 15.7% 17.6% 18.4% 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

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

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BFS Cargo : Strong Profit from New Services & Pricing Adjustment

Key Highlight : 9M-2017

  • 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

Major Customers : New Customers :

BFS Cargo 49% Other 51% Market Share

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418 480 1,229 1,397 1,568 1,702 185 230 540 661 672 773 123 162 359 461 444 527 225 225 405 465 44.3% 48.0% 44.0% 47.3% 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

3Q-16 3Q-17 9M-16 9M-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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Fare Pressure due to high competition affected Revenue

Passenger Revenue

Unit: MB & %Proportion

Key Highlight : All Routes (9M-2017)

  • Passenger Revenue : -2%YoY
  • Average Fare : -6%YoY due to high competition (Especially Indochina)
  • Passenger : +5YoY

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

5,232 5,182 15,892 15,581 19,517 20,761

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

20,761 19,517

+6%

15,581 15,819 5,182 5,158 54% 18% 22% 6% 55% 16% 23% 6% 49% 21% 24% 6% 51% 18% 24% 7% 46% 22% 26% 6% 47% 22% 24% 7%

  • 2%

+0.5%

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International Point of Sale (POS) represent 67% of Passenger Revenue

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Europe + Middle East

(Includes Russia)

3Q-17 : 30% (+6%YoY) 9M-17 : 28% (+6%YoY)

APAC + Australasia

(exclude Thailand)

3Q-17 : 28% (-4%YoY) 9M-17 : 29% (0%YoY)

Thailand Only

3Q-17 : 19% (-5%YoY) 9M-17 : 19% (-8%YoY)

www.bangkokair.com

3Q-17 : 18% (-7%YoY) 9M-17 : 19% (-8%YoY)

>70% Booking from Abroad

Top 3 Europe POS (9M-17)

  • UK
  • Germany
  • France

Top 3 Asia POS (9M-17)

  • China
  • Cambodia
  • Hong Kong
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SLIDE 13

Reach more Passengers through Codeshare Partners

% of Passenger Revenue (Codeshare & Interline)

Unit: % 13

New Codeshare Partners in Y2017

Non Alliance

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

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)

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SLIDE 14

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
  • 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%

Passenger Revenue from Point of Sales in China

3Q16 3Q17 9M16 9M17 6% 8% 5% 8%

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Interline Partners from China

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SLIDE 15

Network Plan to Capture Demand & China Market

Capture 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 Chiang Mai-Samui 1  2 Flights Daily

China Market

Current

Samui-Chengdu 4 Flights Weekly 3Q-16 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

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Fleet Status & Plan

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

Airbus A319 Airbus A320 ATR72-600 ATR72-500

End of 2017 14

FL = Financial Lease OL = Operating Lease

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Advanced Booking

Advanced Booking Traveling within 1Q2018 : Segmented by Region

Samui- Domestic

81%

Cambodia

48%

Myanmar

27%

Vietnam

13%

Samui- Int’l

19%

Laos

12%

+13%YoY

Samui 38% Indochina 18% Others - Domestic 41% Other - International 2%

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Own & Operate 3 Resort-Style Airports

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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 1H2018E All Airlines 38 40 41 42 BA only 32 34 36 37

Samui Passengers (All Airlines)

Unit: Thousand

Sukhothai Passengers

Unit: Thousand

Trat Passengers

Unit: Thousand 19

716 732 2,008 2,049 2,234 2,554

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

+2% +2% +14% 20 21 52 60 54 74 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 +5% +17% +38% 15 16 64 64 73 91 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 +2%

  • 0.5%

+24%

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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

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Financial Highlight

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Financial Overview

Revenue EBITDAR & Net Profit

Unit: MB & EBITDAR Margin (%)

Major Expenses (% of Total Expense)

Unit: % Unit: MB 22

5,165 5,121 15,649 15,302 19,104 20,431 845 963 2,525 2,845 3,148 3,415 688 787 2,355 2,105 2,651 2,920

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Passenger Sales & Services Others

6,871 6,698 +3% +7%

  • 1%

20,252 20,528 26,766 24,903

1,745 1,057 5,758 3,459 5,293 6,570 681 (142) 2,144 (98) 1,849 1,837 26.9% 15.8% 29.1% 17.6% 22.0% 25.3%

  • 100%
  • 80%
  • 60%
  • 40%
  • 20%
0% 20% 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

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 EBITDAR Net Profit EBITDAR Margin 506 Additional Corporate Income Tax (one off)

14% 15% 14% 16% 20% 13% 12% 13% 13% 12% 10% 13% 7% 8% 8% 9% 7% 8% 15% 13% 14% 14% 14% 14% 14% 12% 13% 13% 13% 14% 38% 39% 38% 36% 36% 38%

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

Fuel AC Maintenance AC Lease Passenger Service Salary & Wages Others

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RASK vs CASK & Unit Margin

CASK Fuel

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

Salary & Wage Maintenance

Cost per ASK (9M-16 vs 17)

  • Fuel : +26%
  • AC Lease : +17%
  • Maintenance : -3%
  • Passenger Service : -2%

Unit Margin RASK-CASK (THB per ASK)

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Passenger Service

3.74 3.35 3.84 3.34 3.60 3.69

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

3.30 3.51 3.26 3.40 3.30 3.36

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

0.50 0.50 0.45 0.54 0.49 0.60 0.51 0.51 0.49 0.50 0.48 0.53 0.49 0.63 0.47 0.52 0.47 0.75 0.38 0.52 0.52 0.50 0.48 0.53 0.44 (0.16) 0.58 (0.06) 0.30 0.33

3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016

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SLIDE 24

Effective Fuel Hedging

Hedging Policy 50-70% of Fuel Consumption

*Indicative price provided by PTT as of 27th October 2017

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

30 35 40 45 50 55 60 65 70 75

0% 10% 20% 30% 40% 50% 60% 70% 80%

  • Avg. MOPS

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

2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Hedge Ratio 53% 59% 66% 65% 65% 64% 30% Average Hedge Cost 59 60 58 62 61 62 57 Average Hedge Cost Average Effective Cost 62 61 58 65 64 65 65 Average Effective Cost 60 61 BA 2018 62 64 24

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Thank You

Email: ir@bangkokair.com

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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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