Opportunity Day 2Q2018 Disclaimer Information contained in our - - PowerPoint PPT Presentation

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Opportunity Day 2Q2018 Disclaimer Information contained in our - - PowerPoint PPT Presentation

Sep 12, 2022 157 likes •407 views

Opportunity Day 2Q2018 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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SLIDE 1

Opportunity Day 2Q2018

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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

Less EU visitors traveled to Thailand during World Cup 2018 event

International Visitor Arrival to Thailand

(All Modes of Transportation)

Unit: Million

3

*IVA = International Visitor Arrival

7.6 8.1 8.9 16.6 17.3 19.5 1.0 1.1 1.1 3.1 3.4 3.6 2.3 2.3 2.8 4.9 4.7 5.9 2Q16 2Q17 2Q18 1H16 1H17 1H18

IVA IVA : EU IVA : China

2Q17  2Q18

IVA +9% IVA : EU

  • 2%

IVA : China +21%

1H17  1H18

IVA +12% IVA : EU +8% IVA : China +26%

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SLIDE 4

Operating Statistics 2Q18 & 1H18

4

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 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 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 ASK (Million Kilometers) Unit Margin (THB/ASK) Net Profit (MB) Passenger (Thousand) RASK (THB/ASK) Total Revenue (MB) RPK (Million Kilometers) CASK (THB/ASK) EBITDAR (MB)

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SLIDE 5

3 Airport Related Services at BKK Airport

1

BAC BFS Ground BFS Cargo

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SLIDE 6

BAC : Pressure from business expansion

6 352 285 795 648 1,456 1,551 72 44 205 155 419 396 42 19 133 93 276 245* 250 215 20% 16% 26% 24% 29% 26%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

  • 200

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

2Q17 2Q18 1H17 1H18 Y2016 Y2017

Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) BA holds 90%

22 Airline customers (-1) 4.15 Mil. Meal Uplift (-21%) 22,947 Meal per Day (-21%)

Key Highlight : 1H18 Developments :

  • BAC-Phuket : 9 Airline customers
  • Gourmet Primo : 8 Customers
  • BAC-Chiang Mai : Expected to
  • perate in 1Q2019

BAC-BKK Major Customers : BAC-Phuket Customers : Gourmet Primo Customers :

Lounge Bakery

*Impairment

Non-Halal BAC serves 3 types of meal

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SLIDE 7

BFS Ground : Strived to improve efficiency

7 592 659 1,240 1,342 2,383 2,537 97 102 244 240 405 404 52 64 148 149 255 254 117 67 117 67 201 285 16.4% 15.7% 19.8% 18.1% 17.3% 16.2%

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

2Q17 2Q18 1H17 1H18 Y2016 Y2017

Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) BA holds 99%

75 Airline customers (+3)

Key Highlight : 1H18

36,393 Flights serviced (+7%) The only IATA certified at BKK airport Major Customers :

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SLIDE 8

BFS Cargo : Growing profit & gaining volumes

8 464 515 917 1,008 1,702 1,937 223 258 430 508 773 925 156 197 300 373 527 688 225 210 225 210 465 600 48.0% 51.0% 47.0% 50.8% 46.1% 48.7%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

2Q17 2Q18 1H17 1H18 Y2016 Y2017

Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)

67 Airline customers (+2)

Key Highlight : 1H18

208,821 Weight serviced (+10%)

BA holds 49%

Major Customers : The only IATA certified at BKK airport

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SLIDE 9

Boutique Airlines

2

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SLIDE 10

Passenger Revenue

Unit: MB & %Proportion

10

49% 19% 24% 8%

52% 21% 22% 5%

49% 20% 25% 6%

52% 19% 25% 4%

47% 22% 25% 6%

49% 19% 26% 6%

2018 2017

2Q18 = 4,201 (-4%) 2Q17 = 4,357 Y2017 = 20,502 (-1%) Y2016 = 20,761 1H18 = 10,512 (+1%) 1H17 = 10,399 2Q 1H Year

Samui routes dominated Passenger Revenue

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)
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SLIDE 11

70% of passenger revenue contributed from International Point of Sale (POS)

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21% 23% 23% 25% 22% 22%

2Q17 2Q18 1H17 1H18 2016 2017

% of Passenger Revenue (Codeshare & Interline)

Unit: %

New Codeshare Partners in 2Q18

Non Alliance Non Alliance

26 Codeshare partners 70+ Interline partners

Europe + Middle East 2Q18 : 23% (+4%) 1H18 : 29% (+12%) Thailand 2Q18 : 18% (-9%) 1H18 : 17% (-3%) Asia Pacific (ex. Thailand) 2Q18 : 33% (+2%) 1H18 : 29% (+2%) www.bangkokair.com 2Q18 : 17% (-21%) 1H18 : 17% (-15%)

>70% booking from abroad

China 2Q18 : 9% (+34%) 1H18 : 9% (+35%)

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SLIDE 12

Unique network designed to match travel behavior

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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

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SLIDE 13

Gear toward fleet commonality

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34 38 39 39

Y2016 Y2017 AUG2018 Y2018E

12 9 6 7 14 9 6 9 15 9 6 9 15 9 4 11 A319 A320 ATR72-500 ATR72-600

FL

Own

OL FL = Financial Lease OL = Operating Lease

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SLIDE 14

Appendix : Samui routes lead Advanced Booking

Advanced Booking Traveling within 2H2018 : Segmented by Region

Samui- DOM

41%

Cambodia

7%

Myanmar

5%

Vietnam

3%

Samui- INTL

7%

Laos

3% Samui 48% CLMV 18% Domestic 31% International 3%

19

+1%YoY

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SLIDE 15

Own & Operate 3 Resort-Style Airports

3

Samui Airport Sukhothai Airport Trat Airport

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SLIDE 16

Create Strategic Route Network Through Boutiques Airports

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2Q17 2Q18 1H17 1H18 2016 2017 2Q17 2Q18 1H17 1H18 2016 2017 2Q17 2Q18 1H17 1H18 2016 2017

17.8 17.6 39.7 40.3 74.1 82.3

Sukhothai Passengers Unit: Thousand

  • 1%

+2% +11%

Trat Passengers

Unit: Thousand

17.4 18.0 48.5 50.0 90.8 93.2

+3% +3% +3%

Samui Passengers (All Airlines) Unit: Thousand

Samui Airport : Average Flight / Day 2017 2018E

All

41 36 2019E 37 41*

599.3 608.3 1,317.1 1,412.4 2,554.1 2,633.8

+2% +7% +3%

*Other airlines in/out Samui: Silk Air & Charter

41 36

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SLIDE 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

17 *Remark: Subject to regulatory approval

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SLIDE 18

Financial Highlight

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SLIDE 19

4,259 4,206 10,182 10,428 20,431 20,249

899 977 1,882 2,021 3,415 3,848

1,738 825 1,158 1,388 1,612 2,918 2,659

2Q17 2Q18 1H17 1H18 Y2016 Y2017 Passenger Sales & Services Gain on Investment Others

Financial Overview

Revenue Major Expenses (% of Total Expense)

Unit: % Unit: MB

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EBITDAR & Net Profit

Unit: MB & EBITDAR Margin (%)

5,982 13,451 14,061 26,766 28,493

+6% +5%

*Gain on Investment 1,738 (one off) **Additional Corporate Income Tax (one off)

411 502 2,402 2,692 6,570 4,283 (521) (82) 44 637 1,837 846* 7.3% 8.7% 18.4% 19.8% 25.3% 16.3%

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

0% 20% 40% (2,000) (1,500) (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

2Q17 2Q18 1H17 1H18 Y2016 Y2017 EBITDAR Net Profit EBITDAR Margin

506**

16% 17% 17% 17% 13% 16% 12% 12% 12% 14% 13% 12% 8% 6% 9% 6% 8% 8% 13% 12% 14% 12% 14% 13% 13% 13% 13% 13% 14% 13%

5% 5% 5% 5% 5% 5% 3% 3% 4% 4% 4% 4%

29% 31% 25% 28% 28% 28% 2Q17 2Q18 1H17 1H18 Y2016 Y2017

Fuel AC Maintenance AC Lease Passenger Service Salary & Wages Flight Operations Reservation System IT System Others

6,342

+6%

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SLIDE 20

RASK vs CASK & Unit Margin

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2.92 3.02 3.34 3.5 3.65 3.34

2Q17 2Q18 1H17 1H18 Y2016 Y2017

3.36 3.34 3.36 3.35 3.33 3.43

2Q17 2Q18 1H17 1H18 Y2016 Y2017

(0.44) (0.32 (0.02) 0.15 0.33 (0.09)

2Q17 2Q18 1H17 1H18 Y2016 Y2017

0.50 0.62 0.47 0.50 1.27 0.52 0.66 0.47 0.46 1.23 0.48 0.64 0.44 0.52 1.28 0.49 0.67 0.54 0.47 1.18 0.52 0.50 0.48 0.53 1.30 0.50 0.63 0.48 0.51 1.31

Others Fuel Salary & Wages Maintenance Passenger Service

RASK (THB per ASK) CASK (THB per ASK) Unit Margin RASK-CASK (THB per ASK)

Cost per ASK (1H17 vs 1H18)

  • Fuel : +5%
  • AC Lease : -29%
  • Maintenance : +21%
  • Passenger Service : -9%
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SLIDE 21

Effective Fuel Hedging

Hedging Policy 50-70% of Fuel Consumption

*Indicative price provided by PTT as of 26th July 2018

Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18 Jul/18 Aug/18 Sep/18 Oct/18 Nov/18 Dec/18

30 40 50 60 70 80 90 100 0% 10% 20% 30% 40% 50% 60% 70% 80%

  • Avg. MOPS

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

1Q 2Q 3Q 4Q 1Q 2Q Hedge Ratio 69% 65% 67% 54% 44% 46% Average Hedge Cost 66 69 82 87 85 84 Average Hedge Cost Average Effective Cost 70 75 83 86 85 84 Average Effective Cost 2019 85 84 BA 2018 78 75

21

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SLIDE 22

Thank You

Email: ir@bangkokair.com

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SLIDE 23

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

  • 7.25% in BDMS
  • 33.03% in SPF
  • 9.50% in BAFS
  • 7.00% in FPT (Non-Listed)
  • MKT Value = 39,217 MB

as at 31st July 2018

Appendix : 4 Key Components to Support Sustainable Growth

23

Duty Free Business by More Than Free:

Samui, U-Tapao, Suratthani & Luang Prabang (with Joint Venture)