Opportunity Day 2Q2018
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3 Less EU visitors traveled to Thailand during World Cup 2018 event International Visitor Arrival to Thailand (All Modes of Transportation) Unit: Million 1H17 1H18 IVA +12% IVA : EU +8% IVA : China +26% 19.5 2Q17 2Q18 17.3 IVA +9% 16.6 IVA : EU -2% IVA : China +21% 8.9 8.1 7.6 5.9 4.9 4.7 3.6 3.4 3.1 2.8 2.3 2.3 1.1 1.1 1.0 2Q16 2Q17 2Q18 1H16 1H17 1H18 IVA IVA : EU IVA : China *IVA = International Visitor Arrival
4 Operating Statistics 2Q18 & 1H18 Passenger (Thousand) RASK (THB/ASK) Total Revenue (MB) 2Q18 1,265 -2% 2Q18 3.02 +3% 2Q18 6,342 +6% 2Q17 1,295 2Q17 2.92 2Q17 5,982 1H18 3,023 +4% 1H18 3.50 +5% 1H18 14,061 +5% 1H17 2,918 1H17 3.34 1H17 13,451 RPK (Million Kilometers) CASK (THB/ASK) EBITDAR (MB) 2Q18 1,014 -1% 2Q18 3.34 -1% 2Q18 502 +22% 2Q17 1,026 2Q17 3.36 2Q17 411 1H18 2,330 +3% 1H18 3.35 -0.3% 1H18 2,692 +12% 1H17 2,257 1H17 3.36 1H17 2,402 ASK (Million Kilometers) Unit Margin (THB/ASK) Net Profit (MB) 2Q18 1,601 -2% 2Q18 (0.32) +27% 2Q18 (82) +84% 2Q17 1,637 2Q17 (0.44) 2Q17 (521) 1H18 3,323 -1% 1H18 0.15 1H18 637 1H17 3,364 1H17 (0.02) 1H17 44
1 3 Airport Related Services at BKK Airport BAC BFS Ground BFS Cargo
6 BAC : Pressure from business expansion 2,600 35.0% 29% 2,400 26% 2,200 26% 30.0% 24% 2,000 1,551 1,800 20% 25.0% 1,456 1,600 1,400 16% 20.0% 1,200 795 1,000 15.0% 648 800 352 600 10.0% 285 276 245* 133 400 93 42 19 72 44 205 155 419 250 396 215 200 5.0% 0 -200 0.0% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) *Impairment BAC-BKK Major Customers : Key Highlight : 1H18 BAC serves 3 types of meal BA holds 90% Non-Halal BAC-Phuket Customers : 22 Airline customers (-1) Developments : BAC-Phuket : 9 Airline customers 4.15 Mil. Meal Uplift Gourmet Primo Customers : (-21%) Bakery Gourmet Primo : 8 Customers Lounge BAC-Chiang Mai : Expected to 22,947 Meal per Day operate in 1Q2019 (-21%)
7 BFS Ground : Strived to improve efficiency 2,537 2,383 2,600 25.0% 19.8% 2,400 18.1% 2,200 17.3% 16.4% 20.0% 16.2% 2,000 15.7% 1,800 1,342 1,600 15.0% 1,240 1,400 1,200 10.0% 1,000 659 592 800 405 404 600 285 255 254 244 240 5.0% 201 148 149 400 117 117 97 102 52 64 67 67 200 0 0.0% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 1H18 Major Customers : BA holds 99% 75 Airline customers (+3) 36,393 Flights serviced (+7%) The only IATA certified at BKK airport
8 BFS Cargo : Growing profit & gaining volumes 2,600 60.0% 51.0% 50.8% 48.7% 48.0% 2,400 47.0% 46.1% 1,937 2,200 50.0% 2,000 1,702 1,800 40.0% 1,600 1,400 30.0% 1,008 1,200 917 925 773 1,000 688 20.0% 800 515 527 508 464 430 373 600 300 258 223 197 156 600 10.0% 400 465 225 210 225 210 200 0 0.0% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 1H18 Major Customers : BA holds 49% 67 Airline customers (+2) 208,821 Weight serviced (+10%) The only IATA certified at BKK airport
2 Boutique Airlines
10 Samui routes dominated Passenger Revenue 2017 Passenger Revenue Unit: MB & %Proportion 2018 Y2017 = 20,502 (-1%) 2Q18 = 4,201 (-4%) 1H18 = 10,512 (+1%) 2Q17 = 4,357 1H17 = 10,399 Y2016 = 20,761 4% 5% 6% 6% 6% 8% 22% 25% 26% 25% 25% 24% 47% 49% 1H 49% Year 2Q 49% 52% 52% 20% 19% 22% 21% 19% 19% Samui CLMV Domestic (excl. Samui) International (excl. Samui) 1H2018 Key Highlight : All Routes Passenger : +4%YoY Average Fare : -2%YoY due to high competition (Indochina & Other International) Passenger Load Factor : +3pptYoY Point-of-Sales in China contributed 9% of Passenger Revenue (mostly F.I.T. travelers)
11 70% of passenger revenue contributed from International Point of Sale (POS) Thailand Europe + Middle East 2Q18 : 18% (-9%) 2Q18 : 23% (+4%) 1H18 : 17% (-3%) 1H18 : 29% (+12%) China 2Q18 : 9% (+34%) 1H18 : 9% (+35%) Asia Pacific (ex. Thailand) 2Q18 : 33% (+2%) 1H18 : 29% (+2%) www.bangkokair.com 2Q18 : 17% (-21%) >70% booking from abroad 1H18 : 17% (-15%) % of Passenger Revenue (Codeshare & Interline) New Codeshare Partners in 2Q18 Unit: % 25% 26 Codeshare partners 23% 23% 22% 22% 70+ Interline partners 21% Non Non Alliance Alliance 2Q17 2Q18 1H17 1H18 2016 2017
12 Unique network designed to match travel behavior 2019 : New Route Bangkok-Cam Ranh 7 Flights weekly Chiang Mai-Krabi 7 Flights weekly Samui-Taipei 3 Flights weekly 2019 : Adding Frequency Bangkok-Danang 7 14 Flights weekly
13 Gear toward fleet commonality 39 39 38 34 FL 9 11 9 ATR72-600 7 6 Own 4 6 ATR72-500 6 9 9 9 9 A320 OL 15 15 14 A319 12 Y2016 Y2017 AUG2018 Y2018E FL = Financial Lease OL = Operating Lease
19 Appendix : Samui routes lead Advanced Booking +1%YoY Advanced Booking Traveling within 2H2018 : Segmented by Region International 3% Myanmar Samui- Domestic 5% DOM 31% 41% Vietnam 3% CLMV Samui 18% 48% Samui- Cambodia INTL 7% Laos 7% 3%
3 Own & Operate 3 Resort-Style Airports Sukhothai Airport Trat Airport Samui Airport
16 Create Strategic Route Network Through Boutiques Airports Samui Airport : Average Flight / Day S amui Passengers (All Airlines) Unit: Thousand 2017 2018E 2019E 608.3 599.3 2,554.1 2,633.8 1,317.1 1,412.4 +3% +2% +7% All 41 41 41* 1H17 1H18 2Q17 2Q18 2016 2017 36 36 37 S ukhothai Passengers Unit: Thousand 74.1 82.3 17.8 17.6 39.7 40.3 -1% +2% +11% 1H17 1H18 2016 2017 2Q17 2Q18 T rat Passengers Unit: Thousand 90.8 93.2 17.4 18.0 48.5 50.0 +3% +3% +3% 1H17 1H18 2016 2017 2Q17 2Q18 *Other airlines in/out Samui: Silk Air & Charter
17 New Development : Subject to Regulatory Approval New Aircraft Maintenance Facility at Sukhothai Airport : Expected to start construction within 4Q2018 New Airport Development* in Domestic & International New Catering Facility at Chiang Mai Airport : Expected to start operation in 1Q2019 Samui Renovation Project* : Delayed due to EIA process Grow duty free business by More Than Free *Remark: Subject to regulatory approval
Financial Highlight
19 Financial Overview Revenue Major Expenses (% of Total Expense) Unit: MB Unit: % +6% 26,766 28,493 25% 28% 28% 28% 29% 31% +5% 2,659 4% 4% 4% 4% 3% 2,918 5% 3% 1,738 5% 5% 5% 5% 5% 13% 3,415 3,848 +6% 13% 13% 13% 13,451 14,061 14% 13% 14% 12% 13% 13% 12% 14% 6,342 1,612 1,388 5,982 6% 9% 8% 8% 6% 8% 2,021 1,882 20,431 20,249 14% 12% 12% 12% 12% 13% 1,158 825 10,182 10,428 977 899 17% 17% 17% 16% 16% 4,259 4,206 13% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Fuel AC Maintenance AC Lease Passenger Service Salary & Wages Passenger Sales & Services Gain on Investment Others Flight Operations Reservation System IT System Others *Gain on Investment 1,738 (one off) EBITDAR & Net Profit **Additional Corporate Income Tax (one off) Unit: MB & EBITDAR Margin (%) 8,000 40% 25.3% 19.8% 7,500 18.4% 16.3% 7,000 8.7% 7.3% 20% 6,500 6,000 5,500 0% 5,000 4,500 4,000 -20% 3,500 6,570 3,000 2,500 506** 4,283 -40% 2,000 1,500 2,692 2,402 1,837 1,000 -60% 411 502 44 637 846* (521) (82) 500 0 (500) -80% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 (1,000) (1,500) (2,000) -100% EBITDAR Net Profit EBITDAR Margin
20 RASK vs CASK & Unit Margin 3.65 3.5 3.34 3.34 3.02 2.92 RASK (THB per ASK) 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Cost per ASK (1H17 vs 1H18) 3.43 3.36 3.34 3.36 3.35 3.33 Fuel : +5% CASK 1.31 1.23 1.28 1.18 1.30 1.27 (THB per ASK) 0.47 0.51 0.46 0.52 0.53 0.50 0.47 0.44 0.54 0.48 0.47 0.48 AC Lease : -29% 0.66 0.64 0.63 0.62 0.67 0.50 0.52 0.52 0.48 0.50 0.50 0.49 Maintenance : +21% 2Q17 2Q18 1H17 1H18 Y2016 Y2017 Passenger Service : -9% Salary & Wages Fuel Passenger Service Others Maintenance 0.33 0.15 Unit Margin (0.02) (0.09) (0.44) (0.32 RASK-CASK 2Q17 2Q18 1H17 1H18 Y2016 Y2017 (THB per ASK)
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