Samui Airport Property Fund (Leasehold) Q1 2016 Introduction of - - PowerPoint PPT Presentation

Samui Airport Property Fund (Leasehold)

Q1 2016

Introduction of SPF

Samui Airport Property Fund (Leasehold)

Investment Asset Location Samui Airport

Samui Island “The premier island destination in the Gulf

• f Thailand”

Tourism Authority of Thailand “3rd place ranked in Trip Advisor Top 10 Asian Islands 2016” Trip Advisor 3

Fund Structure

Samui Airport Property Fund (Leasehold)

Lease & Service Payment & Collateral

• Runway
• Buildings
• Utilities

Samui Airport Property Fund “SPF”

• Bangkok

Airways Plc.

• Institutional

Investors

• Retail

Investors

Investors

Lease Income Leasehold right Over Asset Invests Distributions Lease & Service Agreement Airport Operator

• SPF acquires Samui airport from the

sponsor under 30 year leasehold (expire

• n November 23, 2036)
• SPF finances acquisition by issuance of

units

• Airport is sub-leased back and operated by

Bangkok Airways Plc. (“sale and leaseback”)

• 3 years with option to renew
• SPF can require the operator to renew 9

additional times for 3 year terms

• Sub-lease terms supported by collateral of

marketable securities of 45 mil. BDMS shares (over 1.5 times of 12 months minimum rent + fixed service fee)

• Investors will enjoy quarterly distribution of

income from SPF Management 4

Revenue and Expense Structure

Samui Airport Property Fund (Leasehold) Additional Service Fee* Fees that exceed Fixed rental & service fee Per Formula Fixed Rental & Service Fee

6% of the initial Fund size OR 570 MB p.a. until 2036

Income Expenses

Asset Operation expenses Sub-lessee is responsible for all of the Operational expenses, as specified in the Lease/Sub-lease Agreements

30 Years 2036 2006

Number of Passengers X Passenger Service Fee

Additional Service Fee Formula* AND

Number of Aircrafts X Aircraft Landing Fee

5

Passenger Service Fee Formula

Samui Airport Property Fund (Leasehold)

Domestic Passengers

Samui Airport SPF

First 300 B 300 B 20% of the addition Addition of 300 B International Passengers

Samui Airport

First 500 B 300 B 20% of the addition Addition of 500 B Current @ 300 B Current @ 300 B Current @ 340 B

SPF

Current @ 700 B

+ + + +

6

Aircraft Landing Fee Formula

Samui Airport Property Fund (Leasehold) Type 1 0 - 10,000 kilograms 5,000 B / Flight Cessna Type 2 10,000 - 20,000 kilograms 10,000 B / Flight Dash 7 Type 3 More than 70 seats 50,000 B / Flight ATR Type 4 More than 125 seats 80,000 B / Flight Airbus / Boeing

7

Operation & Financial Highlight

Samui Airport Property Fund (Leasehold)

SPF Performance - Q1 2016 No of Passengers

Ratio of Passenger by Type 57.9% 42.1% Domestic Passenger International Passenger

Number of Passenger (Thousand Persons)

Q1 2016 No of Passengers Change Domestic 216,052 (+21.4%) International 156,938 (+14.7%) Total 372,990 (+18.5%)

Performance Highlight 5.7% 4.3% 0.5% 6.6% 18.9% 9.0%

• 1.6%

5.4% 18.5%

• 5%

0% 5% 10% 15% 20%

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q1 2016 International Passenger Domestic Passenger Total Passenger Change YoY (%)

5.9% CAGR

YOY Change of number

• f Passenger (%)

Source: Bangkok Airways Plc. 9

Samui Airport Property Fund (Leasehold)

SPF Performance - Q1 2016 No of Aircraft

Ratio of Aircraft by Type

Number of Aircraft (Thousand Persons)

Q1 2016 No of Aircraft Change Type 1 40 (+25.0%) Type 2 21 (-61.6%) Total 4,029 (+16.0%)

4.3% CAGR

YOY Change of number

• f Aircraft (%)

0.1%

• 2.1%

9.6% 7.6% 11.6% 4.2%

• 1.0%

5.0% 16.0%

• 4%

0% 4% 8% 12% 16% 20% 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q1 2016 Type 1 Type 2 Type 3 Type 4 Total Flight Change YoY (%) Performance Highlight

Type 1 1.0% Type 2 0.5%

Type 3 35.9% Type 4 62.6%

Major Airlines to Samui airport

Cessna (Type 1) Dash 7 (Type 2) ATR (Type 3) Airbus (Type 4)

Type of Flight

Q1 2016 No of Aircraft Change Type 3 1,447 (+1.8%) Type 4 2,521 (+28.3%)

Source: Bangkok Airways Plc. 10

3.6% 2.6% 4.4% 6.0% 15.9% 8.3%

• 0.4%

5.5% 20.4%

• 5%

0% 5% 10% 15% 20% 25%

• 200

400 600 800 1,000 1,200 1,400 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q1 2016 Passenger Rev Aircraft Rev % Total Increase

Samui Airport Property Fund (Leasehold)

SPF Performance - Q1 2016 Fund Revenue

Annual revenue by year

Apr – May 2010 ;

• Political Unrest

Sep 2011;

• Great flood

Nov 2008;

• Political Issue
• Suvarnabhumi

Airport closure 5.6% CAGR

YOY Change of revenue (%) Fund Revenue (Unit: MB)

Apr 2009;

• Swine Flu

Nov –Dec 2013;

• Protest in

Bangkok May 2014 – Mar 2015

• Martial Law

30.1% 69.9% Aircraft Rev Passenger Rev

Q1 2016 Amount (mil. THB) Change Aircraft Revenue 118 (+21.6%) Passenger Revenue 274 (+19.9%) Total 393 (+20.4%)

Performance Highlight Ratio of Fund Revenue Source: Bangkok Airways Plc. 11

Samui Airport Property Fund (Leasehold)

Balance Sheet

Unit: THB Million except indicated Q1 2016 Q4 2015 Q-o-Q Investments in leasehold rights to properties at fair value 10,287 10,028 3% Cash and near cash 365 291 25% Accounts receivable 127 113 12% Total Assets 10,780 10,433 3% Other Assets 0.05 0.05 0% Account payable and Accrued expenses 3 3 0% Deposits received from customer 48 48 0% Other liabilities 9 10 (-15%) Total Liabilities 60 62 (-2%) Capital received from unitholders 9,500 9,500 0% Retained earnings 1,511 1,163 30% Net Asset Values 10,719 10,371 3% NAV per unit (THB) 11.2836 10.9168 3% 12

Samui Airport Property Fund (Leasehold)

Profit & Loss

Unit: THB Million except indicated Q1 2016 Q4 2015 Q-o-Q Q1 2015 Y-o-Y Property Level Income from investments in leasehold rights to properties 393 304 29% 326 20% Net Income at property level 393 304 29% 326 20% Fund Level Other Income 1 1 0% 2 (-50%) Fund management fee and

• thers

(10) (10) 0% (10) 0% Net investment income 384 295 30% 318 21% Net realised gains (losses) on investments 0% 0% Net unrealised gains (losses) on investments 259 (-31) 735% (-58) 347% Net Increase in net assets 643 264 144% 260 147% 13

Samui Airport Property Fund (Leasehold)

Shareholder Structure and Dividend

0.9229 0.7660 0.7521 0.9250 0.9900 1.1550 1.2500 1.2500 1.2900 0.3300 0.4000 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q1 2016

DPU (THB/share)

21.2% growth (THB per share) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q1 2016 Market Price* 8.85 4.94 8.35 9.70 9.75 16.8 16.0 17.3 19.9 17.2 23.5 Annualized Yield 10.4% 15.5% 9.0% 9.5% 10.2% 6.9% 7.8% 7.2% 6.5% 7.2% 5.8% Unitholders Information (as of 25 February 2016) THAI 90.3% Bangkok Airways Plc. (sponsor) 30.4% Institutional Investor 32.2% Retail Investor 27.7% Foreign 9.7% Institutional Investor 8.5% Retail Investor 1.1% Listed on the SET Outstanding Units Par value (as of IPO) NAV (as of Mar 2016) Market price as of Mar 2016) Nov 24, 2006 950 mil. units 10.000 THB/unit 11.2835 THB/unit 23.8 THB/unit

[Note] *Market price as of end of each period

Dividend Policy

• Quarterly dividend payment
• 90% minimum payout of net investment income

Total Distribution since inception: 9.7010 THB/unit Source: SPF 14

Fund Prospect

Samui Airport Property Fund (Leasehold)

Fund Prospect

Macro

• Growth of Thai

Tourism industry (+)

• Corporate &

personal tax incentive (+)

• Multiple Entry visa

(+)

• Political risk (-)

Operator

• New route (+)
• Increase flights

to existing routes (+)

• More codeshare

partners (+)

• Increase fleets

(+)

Fund

• Fully realized
• international PSC (+)
• Airport renovation
• plan (+)

16

Thank You