Thai Airways International Public Co. Ltd. · SET:THAI

Thai Airways International Public — Thai Airways International PCL — FY2016 Earnings Presentation

23 slides from Thai Airways International Public's earnings presentation, Mar 13, 2017

  1. Slide 1: Year 2016 analysts briefing

    THAI AIRWAYS INTERNATIONAL PCL Year 2016 analysts briefing 13-Mar-2017 1 Year 2016 analysts briefing

  2. Slide 2: Disclaimer

    DISCLAIMER The information contained herein is intended to represent the Company’s operating and financial position at a given point in time and may also contain forward looking information which only reflects expectations based on the prevailing geo-political, economic and non-controllable factors.

  3. Slide 3: Transformation Plan

    y > N TRANSFORMATION PLAN

  4. Slide 4: Transformation plan (2016)

    Transformation plan (2016) 2015 2015-2016 2017 onward Stop bleeding Strength Building Sustainable Growth Revenue 1. Revenue Management - New Fare Management - New customer segment - Web Sales - Pricing benchmark Cost Transformation Plan 2. Cost management & Efficiency uplift - Cost management - Airc

  5. Slide 5: 2016 Events

    2016 Events • Total 95 active aircraft +2x A350-900 – 2xB777-200 • 270 staffs joined Mutual Separation Plan • Best SEAsian Airline - TTG • Most Improved Airline – Skytrax • 565 New cabin crew on board • #6 customer satisfaction – IATA Q3-16 • THAI stock back to SET50 after 3 years absence • 2016’s O

  6. Slide 6: Performance

    PERFORMANCE

  7. Slide 7: Performance

    Performance • Network optimization • Capabilities / Efficiency - slots adjusted (MEL, MXP, OSL, ZRH, - Online check-in 26% (from 11%) BNE, SYD) - Kiosk check-in 6% (from 0.7%)  Kangaroo routes performance improved - Sold 6 under utilized offices significantly (4xmarket share increase) - Streamline

  8. Slide 8: Operations summary

    Operations summary Consolidated Unit : THB’ Billion/ 2015 2016 %change Pax revenue suppressed from Revenues 188.7 180.5 -4.3 competition & fuel surcharge Costs -184.5 -171.3 -7.2 Fuel cost decrease Interest payments -5.5 -5.1 -7.3 Operating Profit (Loss) -1.3 4.1 N/A (1-time) Expense -4.2 -2.5 -40.5

  9. Slide 9: Year 2016 Operating profit movement

    Year 2016 Operating profit movement Consolidated Non Fuel Cost MTHB Y2015 Pax Rev Cargo Rev Other Rev Fuel Cost & Interest Y2016 10,000 -4,342 6,000 4,071 2,000 +17,907 -2,000 -1,304 -4,428 -6,000 -73 -3,689 -10,000 9 Year2016 analysts briefing

  10. Slide 10: Cabin factor

    Cabin factor TG Only Cabin Factor (%) 90.0 CF 2017 80.0 CF 2016 CF 2015 CF 2014 70.0 60.0 50.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10 Year2016 analysts briefing

  11. Slide 11: Passenger yield

    Passenger yield TG Only THB / RPK 3.0 Yield 2014 2.8 Yield 2015 2.6 Yield 2016 2.4 2.2 1% increase YoY if excl. surcharge 2.0 1.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Year2016 analysts briefing

  12. Slide 12: Passenger Yield Analysis

    Passenger Yield Analysis Consolidated (THB/RPK) Y’15 Y’16 % Change (Y’16 Rate) Pax Rev 2.51 2.35 -6.4 FX impact (0.05) - - Total Pax Yield 2.46 2.35 -4.5 Passenger Yield by Region (THB/RPK) Y’15 Y’16 % Change Domestic 2.98 2.94 -1.3 Regional 2.82 2.74 -2.8 Intercontinental 2.03 1.88 -7.4 Total syste

  13. Slide 13: Financial Ratios

    Financial Ratios JAN - DEC 2015 2016 Liquidity Ratio - Current Ratio (times) 0.78 0.78 Profitability Ratio - Operating Profit (loss) margin % (0.69) 2.25 - Net profit (loss) Margin % (6.90) 0.03 - Return to Equity % (35.16) 0.14 Efficiency Ratio - Return to Total Assets % (2.70) 1.34 Financial Polic

  14. Slide 14: Fuel management

    Fuel management Monthly fuel hedging as % of consumption by month 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1-13 Q2 Q3 Q4 Q1-14 Q2 Q3 Q4 Q1-15 Q2 Q3 Q4 Q1-16 Q2 Q3 Q4 H1-17 H2-17 Q1-18 Note : As of Feb 28,2017 14 Year 2016 analysts briefing

  15. Slide 15: 2016 Financial Restructuring

    2016 Financial Restructuring

  16. Slide 16: THAI has over 50+ multiple currencies

    THAI has over 50+ multiple currencies Revenue Expense AUD OTHER OTHER JPY CNY 2% 6% 27% 3% 1% (2%) THB 38% EUR 4% THB 35% (32%) AUD 5% USD CNY 49% 6% USD (53%) JPY 6% EUR 9% (7%) 9% (8%) As of Sep16 16

  17. Slide 17: Interest rate environment

    Interest rate environment Can benefit from low interest rate currencies 17

  18. Slide 18: Liabilities by currency

    Liabilities by currency MTHB 250,000 TOTAL : THB 193b 200,000 3,625 TOTAL : THB 176b TOTAL : THB 169b 11,000 5,231 12,324 24,072 6,800 5,400 150,000 28,475 2,000 CHF 30,354 ECP 79,234 ST loan 100,000 68,531 JPY 63,734 13,529 EUR 12,184 50,000 USD 61,963 THB 55,271 54,752 0 Dec-15 Sep-16 Dec-16 18

  19. Slide 19: Managing Interest Cost

    Managing Interest Cost TG Only Unit : THB ‘bn Actual 14’ Actual 15’ Forecast 16’ Interest Payment 5.9 5.9 5.3 (-10%) Loan balance (avg) 187.2 189.5 181.8 (-4.1%) 19

  20. Slide 20: In sum

    In sum 2016 -0.40% THB -600mm Cost of fund Interest expense 20

  21. Slide 21: Outlook

    OUTLOOK

  22. Slide 22: 2017 Outlook

    2017 Outlook • MRO Project at UTP & EEC • Signed MOU with Airbus on 8-Mar-17 • Comprehensive network & long term fleet uplift • Initial schedule adjustment done for Kangaroo to EU • 2nd flight to FRA & CPH to via HKT (BKK-HKT-FRA) • Pull back WE flights from DMK and move to BKK • 4 forward TPI plann

  23. Slide 23: Q&A

    Q&A

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