Thai Airways International Public Co. Ltd. · SET:THAI
Thai Airways International Public — Thai Airways International Pcl. — Q2 2008 Earnings Presentation
29 slides from Thai Airways International Public's earnings presentation, Nov 14, 2008
Slide 1: Thai Airways International Pcl. (Apr-Jun 2008)
THAI AIRWAYS INTERNATIONAL Pcl. (Apr’08- (Apr’08 (Apr 08-Jun’08) Jun 08) Investor Relations Department 1
Slide 2: Table of Contents
Table of Contents 1. The Company 2. Statistic Information 3 Current Issue 3. 4. Financial Performance 5. Going g Forward Investor Relations Department 2
Slide 3: 1. The Company
1.. Thee Company Co p y Investor Relations Department 3
Slide 4: The Company
The Company Shareholders Other Shareholders Ministry of Finance 26.90 % 51.03 % • Registered Capital : 17,000 mn Chase • Par Value (THB) : 10 Nominees Limited 2.16 % • Issued and paid-up : 16,989 mn Governmant Gove at • Market Capitalization: 35,870 mn Saving Bank Vayupak Fund 1 Vayupak Fund 1 (MFC)
Slide 5: THAI's Operations
The Company THAI’s Operations 1. Aviation Business - Passenger Transportation - Cargo and Mail Transportation 2. Business Units Related to Air Transport - Ground Customer Services - Ground Support Equipment Services - Cargo and Mail Commercial Services - Technical Services 3. Transport Support Activ
Slide 6: THAI's Facilities at Suvarnabhumi
The Company THAI’s Facilities at Suvarnabhumi Aircraft Maintenance • Covers 24,300 square meters is the largest maintenance hangar in Southeast Asia for A380 Ground Customer Service • Covering 16,000 square meters provides customers with a full range of customer services and facilities to facilitate
Slide 7: THAI Facilities at Suvarnabhumi
The Company THAI Facilities at Suvarnabhumi Operations p Center • Crew Terminal • Crew Center • Ground & Flight Operations Center • THAI city Headquarter • Landmark Ground Support Equipment • Environment Revolution • Maintenance Shop Under One Roof • New Modern Maintenance Equipment • Enhancement E
Slide 8: Subsidiaries and Associated Companies
The Company Subsidiaries and Associated Companies Name of Company Shareholding Business Type 1. Thai-Amadeus Southeast Asia Company Limited 55.0% Reservation Service 2. Royal Orchid Hotel (Thailand) Public Company Limited 24.0% Hotel 3. Donmuang International Airport Hotel Company Limited 40.0% Hote
Slide 9: Destinations
The Company Destinations Domestic International 12 Destinations / 345 Flights / Week 62 Destinations / 611 Flights / week • North (4 Destinations) Routes Countries Destinations - Chiang Chi Mai M i * - Phitsanulok Phi l k Regional 20 42 Northern 5 15 - Chiang Rai * - Mae Hong Son southern 4 6 • Nort
Slide 10: Aircraft Fleet as of June 2008
The Company Aircraft Fleet As of June 2008 Type of Aircraft Owned Operating Lease Total B 747-400 17 1 18 B 777-300 6 - 6 B 777-200 4 4 8 B 777-200ER 6 - 6 B 737-400 737 400 6 4 10 A 300-600 17 - 17 A 340-600 5 - 5 A 340-500 4 - 4 A 330-300 10 2 12 ATR72* 2 - 2 Total 77 11 88 * NOTE : ATR 72 lease o
Slide 11: Star Alliance
The Company Star Alliance (The Way the Earth Connects) Founding Members Member Carriers Regional Carriers - Air Canada - Air China - Air New Zealand - Adria Airways - Lufthansa - ANA - Asiana Airlines - Blue 1 - Scandinavian Airlines - Austrian - bmi - Croatia Airlines - Thai Airways - Egypt Air - L
Slide 12: 2. Statistical Information
2. Statistical Information Investor Relations Department 12
Slide 13: Statistical Information
Statistical Information • Destinations : Domestic = 12 International = 62 • Continents served : 5 • Total aircraft in fleet : 88 of which 5 are leased to Nok Air • Flight frequency per week : International Routes 611 Flts/Week Domestic Routes 345 Flts/Week • Monthly passengers carried : 1.58 million
Slide 14: Statistical Information Q2'07 vs Q2'08
Statistical Information Q2’07 Q2’08 % Change • Record revenue earned (MTHB) : 35,853 40,668 + 13.43% • Million Available Seat Kms. Kms (MASK) : 19 236 19,236 19,712 19 712 + 2.50% 2 50% • Million Revenue Passenger Kms. (MRPK) : 14,446 15,000 + 3.80% • Cabin factor (%) : 75.1 76.1 + 1.30% • Freight l
Slide 15: Cabin Factor
Statistical Information ASK,RPK (Million) 20,000 18,000 16 000 16,000 14,000 12,000 • ASK increased yoy by 2.5% 10,000 8,000 6,000 • RPK increased i d yoy by b 3.8% 3 8% 4,000 2,000 - Q2'05 Q2'06 Q2'07 Q2'08 ASK RPK Unit : (%) 78 76 74 2 74.2 75.1 76.1 • Active marketing targeting premium Cabin Fact
Slide 16: 3. Current Issues
3. Current Issues Investor Relations Department 16
Slide 17: Aircraft Delivery Schedule
Current Issues Aircraft Delivery Schedule ADDITIONAL AIRCRAFT (According to delivery schedule) 2007 2008 2009 2010 2011 TOTAL A380 - - - 3 3 6 A340-600 - 1 - - - 1 A330-300 - - 6 2 - 8 TOTAL - 1 6 6 2 15 Investor Relations Department 17
Slide 18: Dual Airport Status
Current Issues Dual Airport Status • Don D M Muang Airport Ai (old ( ld iinternational i l airport) i ) – Domestic D i service i • International flights to remain at Suvarnabhumi International Airport (SBIA) • THAI & Star Alliance to remain at SBIA • THAI’s secondary domestic routes currently operat
Slide 19: Fuel & Fuel Surcharge
Current Issues Fuel & Fuel Surcharge • Fuel hedging up to 50% of full year’s demand but flexible g g approximately • Fuel hedging pp y 7% % on 3 months basis • Hedging increase subject to fuel price trend • Fuel surcharge : Intercontinental – USD 146-281 per sector Regional – USD 60-152 per sector D
Slide 20: 4. Financial Performance
4. Financial Performance Investor Relations Department 20
Slide 21: Revenue Breakdown
Financial Performance Revenue Breakdown Revenue Breakdown (Apr’07-Jun’07) (Apr 07 Jun 07) (Apr’08-Jun’08) (Apr 08-Jun 08) Mail Cargo Mail Cargo 0 56% 0.56% 13 59% 13.59% 0 46% 0.46% 13.81% Others Others 6.26% 5.99% Passenger Passenger 79.37% 79.96% Investor Relations Department 21
Slide 22: Passenger Revenue (Q2'05-Q2'08)
Financial Performance Passenger Revenue (Q2’05-Q2’08) Units : THB mn 60,000 • 11.06% CAGR for Total Revenue 45,170 50,860 50,000 growth 42,114 37,128 35,853 40,668 40,000 • 12.04% CAGR for Passenger 33 553 33,553 28,918 Revenue growth 30,000 • Total revenue increased yoy by 20 000 20,000 12.60% 10,0
Slide 23: Operating Expense
Financial Performance Operating Expense Units : THB mn 70,000 • Total expense increased yoy by 34.47% 59,919 60,000 • Personnel expense increased yoy 50,000 44,560 by 0.96% 41,155 40,622 40,000 • Fuel cost increased yoy by 63.49% 30,000 • Flight operations increased yoy by 0.31% 20,000 10,000 • Depr
Slide 24: EBIT, EBITDA and Net Profit
Financial Performance EBIT, EBITDA and Net Profit Units : THB mn 12,000 7,000 4,811 3,512 • Fuel cost the main culprit for 959 disappointing performance 2,000 473 609 -156 • Operating profit still in the black with Q2'05 Q2'06 Q2'07 Q2'08 -981 -417 worst Operating factors -3,000 -3,494 -4,779 -4,451
Slide 25: Interest Coverage Ratio
Financial Performance Interest Coverage Ratio Units : THB mn Ti Times 7.0 9,000 6.0 7,000 5.0 4.6 4,811 4.0 5 000 5,000 3,512 2.9 3.0 3,000 1 035 1,035 1,056 1 197 1,197 2.0 1,307 609 1,000 0.5 1.0 -156 156Q2'05-0.2 02 Q2'06 Q2'07 Q2'08 -1,000 0.0 EBITDA Interest Expense ICR *Note : ICR =EBITDA / IN
Slide 26: Net Debt/Equity Ratio
Financial Performance Net Debt/Equity Ratio Times Units : THB mn 6.0 140 121 123 118 50 5.0 120 110 100 4.0 71 80 67 57 60 3.0 60 2.1 1.9 1.7 2.0 18 1.8 40 1.0 20 0 0.0 Q2'05 Q2'06 Q2'07 Q2'08 Net Debt Equity Net D/E Ratio Investor Relations Department 26
Slide 27: 5. Going Forward
5. Going Forward Investor Relations Department 27
Slide 28: Going Forward
Goingg Forward • Revenue Maximization - Optimizing flights to profitable regional routes - Flexible pricing - Proactive marketing - Review less profitable routes • Network Development - Reduce redundant capacity through synergy • Ensure Ongoing Operation Excellence - Highest level of safety - Unsurp
Slide 29: Sawasdee
Investor Relations Department SAWASDEE 29
Thai Airways International Pcl. — Q2 2008 Earnings Presentation on 6ix