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

Thai Airways International Public — Thai Airways International PCL — Q3 2014 Earnings Presentation

39 slides from Thai Airways International Public's earnings presentation, Nov 18, 2014

  1. Slide 1: Thai Airways International PCL Q3'2014

    THAI AIRWAYS INTERNATIONAL PCL Q3’2014 1 Investor Relations Department

  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: Operations Summary

    Operations Summary Q3’2014 9M’2014 % % 2013 2014 Change 2013 2014 Change Unit YoY YoY Passenger Production MASK 21,458 20,439 -4.8% 63,415 61,262 -3.4% Passenger Traffic MRPK 16,149 14,523 -10.1% 47,683 41,826 -12.3% Cabin Factor % 75.3 71.1 -4.2 75.2 68.3 -6.9 Passenger carried Million 5.41 4.73 -1

  4. Slide 4: Financial Performance

    Financial Performance 4 Investor Relations Department

  5. Slide 5: Performance Summary (Q3'2013 & Q3'2014)

    Financial Performance Performance Summary (Q3’2013 & Q3’2014) THAI and its subsidiaries (Units : MTHB) Q3'2013 Q3'2014 %Change Total Operating Revenues 50,679 45,826 -9.6 Less Total Operating Expenses 52,767 49,766 -5.7 Operating profit(loss) (2,088) (3,940) -88.7 Add Gain (loss) of Foreign currency

  6. Slide 6: Operating / Total Revenue (Q3'2013 & Q3'2014)

    Financial Performance Operating / Total Revenue (Q3’2013 & Q3’2014) Operating Revenue Total Revenue Units : MTHB 2,346 % % of 50,000 2,483 Revenue Change Total Revenue 226 5,652 193 40,000 5,247 Passenger -10.7 70.4 Freight -7.2 9.7 30,000 Mail -14.7 0.4 Other activities +5.84 4.6 42,455 20,000 37,9

  7. Slide 7: Operating / Total Expense (Q3'2013 & Q3'2014)

    Financial Performance Operating / Total Expense (Q3’2013 & Q3’2014) Operating Expense Total Expense Units : MTHB % Change % of 60,000 Expense YoY Tot. Exp. Personnel expense -15.0 13.8 50,000 2,339 1,159 5,040 2,155 1,658 Fuel and oil -3.2 36.8 40,000 3,520 5,146 1,500 3,174 Flight service expense -

  8. Slide 8: EBIT, EBITDA and Net Profit (Q3'2013 & Q3'2014)

    Financial Performance EBIT, EBITDA and Net Profit (Q3’2013 & Q3’2014) Units : MTHB 5,0 0 0 3,550 1,381 1,097 0 -2,088 - 5,0 0 0 -3,292 -3,940 -6,182 -6,282 - 10 ,0 0 0 EBIT EBITDA NET PROFIT *NET PROFIT (Exclude FX) Q3' 2013 Q3' 2014 8 Investor Relations Department

  9. Slide 9: Ratios – Q3'2013 & Q3'2014

    Financial Performance Ratios – Q3’2013 & Q3’2014 Ratios units Q3’2013 Q3’2014 Earnings Per Share (THB) (2.84) 0.50 Book Value per Share (THB) 28.20 21.81 Price / Book Value (Times) 0.71 0.66 EBIT (MTHB) (2,088) (3,939) EBITDA (MTHB) 3,550 1,381 IBD to Equity (Times) 3.0 4.0 Debt Service Coverage* (T

  10. Slide 10: Performance Summary (9M'2013 & 9M'2014)

    Financial Performance Performance Summary (9M’2013 & 9M’2014) THAI and its subsidiaries (Units : MTHB) 9M'2013 9M'2014 %Change Total Operating Revenues 153,785 138,126 -10.2 Less Total Operating Expenses 154,329 150,685 -2.4 Operating profit(loss) (544) (12,559) -2,208.6 Add Gain (loss) of Foreign c

  11. Slide 11: Operating / Total Revenue (9M'2013 & 9M'2014)

    Financial Performance Operating / Total Revenue (9M’2013 & 9M’2014) Operating Revenue Total Revenue Units : MTHB % % of 160,000 7,133 Revenue Change Total Revenue 140,000 7,118 17,147 705 Passenger -11.9 76.1 596 120,000 16,927 Freight -1.3 11.3 Mail -15.6 0.4 100,000 Other activities -0.2 4.8 80,00

  12. Slide 12: Operating / Total Expense (9M'2013 & 9M'2014)

    Financial Performance Operating / Total Expense (9M’2013 & 9M’2014) Operating Expense Total Expense Units : MTHB % Change % of 160,000 Expense YoY Tot. Exp. 6,741 Personnel expense -11.5 14.3 140,000 3,391 6,588 4,578 14,806 120,000 15,403 Fuel and oil +0.1 37.2 10,012 9,587 4,417 4,396 100,000 7,10

  13. Slide 13: EBIT, EBITDA and Net Profit (9M'2013 & 9M'2014)

    Financial Performance EBIT, EBITDA and Net Profit (9M’2013 & 9M’2014) Units : MTHB 20,000 17,243 15,000 10,000 3,727 5,000 0 (544) (5,000) (6,313) (5,350) (10,000) (9,177) (15,000) (12,559) (20,000) (18,555) (25,000) EBIT EBITDA NET PROFIT *NET PROFIT (Exclude FX) 9M' 2013 9M' 2014 13 Investor Relat

  14. Slide 14: Ratios – 9M'2013 & 9M'2014

    Financial Performance Ratios – 9M’2013 & 9M’2014 Ratios units 9M’2013 9M’2014 Earnings Per Share (THB) (2.91) (4.22) Book Value per Share (THB) 28.20 21.81 Price / Book Value (Times) 0.71 0.66 EBIT (MTHB) (544) (12,559) EBITDA (MTHB) 17,243 3,727 IBD to Equity (Times) 3.0 4.0 Debt Service Coverage*

  15. Slide 15: Internet Sales

    Internet Sales % of Sales Ticket Sales Via Internet 16 14 12 10 8 6 4 2 0 Jan Feb Mar A pr May Jun Jul A ug Sep Oct Nov Dec Year 2009 Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 15 Investor Relations Department

  16. Slide 16: e-Services

    e-Services Check-in via Mobile Check-in via Internet (http://m.thaiairways.com) # of PAX % 20000 12 18000 Year 2013 10 Year 2014 16000 Year 2013 Year 2014 Year 2012 14000 8 Year 2011 12000 Year 2012 Year 2010 10000 6 8000 Year 2009 4 6000 Year 2011 4000 2 2000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep

  17. Slide 17: Monthly Fuel Hedging 2010-2015

    44% Jan-10 44% Feb-10 Mar-10 44% Apr-10 47% May-10 47% Jun-10 47% 69% Jul- 10 Aug-10 69% Sep-10 69% Oct -10 69% Update @ Nov17, 2014 Nov -10 69% Dec-10 69% Jan-11 51% Feb-11 51% Mar-11 51% Apr-11 50% May-11 50% Jun-11 56% Jul- 11 80% 80% Aug-11 Sep-11 80% Oct -11 80% Nov -11 80% Dec-11 80% Jan-12 73

  18. Slide 18: Currency Break down

    Currency Break down Foreign Currency Exposure (As of Sep 2014) Revenue Expense Outstanding loan (After Swap) USD 31% THB USD EUR THB 27% 33% 61% 58% THB 36% JPY 3% EUR JPY 9% 9% EUR JPY 27% 6% 18 Investor Relations Department

  19. Slide 19: Debt Structure: Fixed and Float

    Debt Structure Proportion of Fixed and Float (As of Sep 2014) Before Swap After Swap Fixed Float Fixed Float 39% 61% 50% 50% Percentage of TOTAL Percentage of TOTAL (TOTAL = 172,724.45 MTHB) (TOTAL = 172,598.72 MTHB) 19 Investor Relations Department

  20. Slide 20: Looking ahead

    Looking ahead 20 Investor Relations Department

  21. Slide 21: Looking Ahead

    Looking Ahead Cabin Factor (%) Estimated Booking Actual (As of (As of 17.11.14) 19.11.14) 90.0 79.0 78.3 79.778.7 78.3 80.4 73.6 77.3 78.4 75.5 76.7 78.8 80.375.8 78.0 71.1 71.5 68.7 75.3 80.0 70.4 71.5 71.7 73.5 75.3 72.3 71.5 70.2 69.2 70.4 70.0 71.1 67.6 68.3 68.6 66.4 64.3 70.0 59.8 59.2 60.0 50

  22. Slide 22: Company Facts

    Company Facts 22 Investor Relations Department

  23. Slide 23: Current Fleet

    Current Fleet Current Fleet: 102 Aircrafts 34.3% of O 35.3% of FL 30.4% of OL O=Owned FL=Financial lease OL=Operating lease (Note: Approximately) Average age of aircraft = 8.3 years # of # of Seat Aircraft Type Version Financial Method Aircraft First Business Econom y Total A340-600 3461 6 8 60 199

  24. Slide 24: Aircraft Delivery Plan

    Aircraft Delivery Plan NEW A/C DELIVERY 2014 2015 2016 2017 2018 TOTAL A350-900 2 (OL) 5 (3OL/2FL) 5 (3OL/2FL) 12 7 (5OL/2FL) 3 (FL) A320 (Thai Smile) 10 B777-300ER 3 (FL) 3 (FL) - - 6 B787-8 4 (OL) 2 (OL) 6 B787-9 2 (OL) 2 TOTAL 14 8 2 7 5 36 Note : O = Own / FL = Financial lease / OL = Operating l

  25. Slide 25: Phase Out Plan

    Phase Out Plan PHASE-OUT PLAN 2014 2015 2016 2017 2018 TOTAL A300-600 5 - - - - 5 A330-300 5 5 - 2 - 12 B747-400 - - - 2 2 4 B777-300ER - - - - - - (Jet Airways) B777-200 - - 2 - 2 4 B737-400 3 - - 2 - 5 ATR - - - - - - TOTAL 13 5 2 6 4 30 Update 14 Sep 14 25 Investor Relations Department

  26. Slide 26: THAI's Route Network

    THAI’s Route Network World Route Network 30 MAR 2014 31 MAR 2013 To To 25 OCT 2014 International 26 OCT 2013 Routes (Based on TPI (Based on TPI Summer 2014 Issue 2 Summer 2013 Issue 2) as at 12 May 2014) Countries 33 35 Destinations 59 62 Flight Frequency / Week 588 638 Seats / Week 362,484 396,068

  27. Slide 27: THAI's Route Network – Domestic

    THAI’s Route Network Domestic Route Network CHIANG RAI CHIANG MAI KHON KAEN BANGKOK 30 MAR 2014 31 MAR 2013 To To Domestic Routes 25 OCT 2014 26 OCT 2013 (Based on TPI (Based on TPI Summer 2014 Issue 2 Summer 2013 Issue 2) as at 12 May 2014) SAMUI Destinations 6 7 Flight Frequency / Week 173 215 KRA

  28. Slide 28: Adjust flight schedules

    Adjust flight schedules Seasonal Frequency Increase Seasonal Frequency Decrease •Bangkok-Madrid-Bangkok 3 4 flights / week •Bangkok-London-Bangkok 14 12 flights / week •Bangkok-Manila-Bangkok 7 10 flights / week •Bangkok-Copenhagen-Bangkok 9 7 flights / week •Bangkok-Nagoya-Bangkok 7 10 flights / we

  29. Slide 29: THAI Smile Fleet Plan & Route Network

    THAI Smile Fleet Plan & Route Network THAI Smile based at Suvarnabhumi Airport Operates in domestic and regional secondary routes and synchronizes with TG’s network. FREQUENCY* DESTINATION 14 Flights / week Bangkok - Macau V.V. 14 Flights / week Bangkok – Phnom Penh V.V. 14 Flights / week Bangkok -

  30. Slide 30: Nok Air Route Network

    Nok Air Route Network 19 Aircraft Nok Air based at Don Mueang Airport (As of 30 Sep 2014) Currently operates point-to-point service 16 of Boeing 737-800 2 of ATR 72-500 1 of Bombardier Q 400 International & Year 2013 Q3/2014 Domestic Routes (Jan-Dec) TG’s Proportion of Shareholding: Destinations 23

  31. Slide 31: Operating Statistics

    Operating Statistics 31 Investor Relations Department

  32. Slide 32: Operating Statistics: Passengers and Freight Carried

    Operating Statistics Passengers Carried* Q3’14 = 4.73 million (Decreased 12.5% YoY) (Million) Year 2011 Year 2012 Year 2013 Year 2014 6.00 5.50 5.69 5.41 5.31 4.92 5.16 5.10 5.11 4.77 4.86 4.81 4.73 4.50 4.20 4.23 4.00 2.00 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'1

  33. Slide 33: Operating Statistics: Passenger Cabin Factor

    Jan-09 75.18 12,000 18,000 24,000 6,000 - (Million) Feb-09 77.22 Q1'10 81.0 Mar-09 76.81 MRPK MASK Apr-09 Q2'10 64.6 71.12 May-09 62.22 Q3'10 Cabin factor (%) 74.7 Year 2010 Jun-09 65.07 *Includes THAI Smile(WE) Q4'10 73.8 Jul-09 71.33 ASK Q1'11 76.1 Aug-09 76.07 Q3'13 16,149 21,458 75.3 Q2'11 Sep-0

  34. Slide 34: Operating Statistics: Freight Factor

    Jan-09 75.18 (Million) Feb-09 77.22 300 600 900 1,200 1,500 - Mar-09 76.81 Q1'10 59.6 MRFTK MADTK Apr-09 71.12 Q2'10 64.8 May-09 62.22 Year 2010 Freight factor (%) Q3'10 61.3 Jun-09 65.07 *Includes THAI Smile (WE) Jul-09 Q4'10 60.4 71.33 ASK Aug-09 76.07 Q1'11 56.9 Q3'13 48.4 603 1,246 Sep-09 74.35

  35. Slide 35: Operating Statistics: Passenger and Freight Yield

    Operating Statistics Passenger Yield (Including Fuel Surcharge) (THB/Km) 2.87 2.86 2.84 2.76 2.76 2.81 2.77 2.81 2.76 2.73 2.78 2.74 2.83 2.70 2.70 2.72 2.72 2.78 2.71 2.74 2.72 3.00 2.73 2.73 2.78 2.69 2.78 2.75 2.68 2.67 2.67 2.68 2.70 2.64 2.61 2.63 2.70 2.61 2.61 2.61 2.60 2.57 2.56 2.56 2.64 2.

  36. Slide 36: Aircraft Utilization

    Aircraft Utilization 13.0 Hours / Day / Aircraft 12.0 11.1 11.0 10.8 10.7 10.4 10.2 10.2 10.1 10.1 10.0 9.9 9.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009 2010 2011 2012 2013 2014 Aircraft Utilization for Q3’2014 = 10.4 Hours/Day/Aircraft Aircraft Utilization for Year 2013 = 11.2 Hours/Day

  37. Slide 37: THAI's Number of PAX By Class By Area

    THAI’s Number of PAX By Class By Area Q3’2014 Non Royal First Royal Silk Non-Schedule 8.71% Premium Revenue 0.37% (Int) Economy 2.07% 0.12% 0.13% Africa 0.32% Domestic 19.73% North Pacific 0.81% Europe 14.53% Regional 58.60% Economy 88.72% Australia 5.88% Total passengers for Jul-Sep 2014 = 4.09 mil

  38. Slide 38: THAI Smile's Number of PAX By Class By Area

    THAI Smile’s Number of PAX By Class By Area Q3’2014 Non Revenue 0.77% Royal Silk 3.87% International Economy 100.00% 95.35% Total passengers for July-Sep 2014 = 169,429 *Code Shared by TG, Exclude Thai Smile (WE) 38 Investor Relations Department

  39. Slide 39: Investor Relations Department

    39 Investor Relations Department

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