Thai Airways International Public Co. Ltd. · SET:THAI
Thai Airways International Public — Thai Airways International PCL — FY2017 Earnings Presentation
20 slides from Thai Airways International Public's earnings presentation, Mar 9, 2018
Slide 1: Thai Airways International PCL Year 2017 analysts briefing
THAI AIRWAYS INTERNATIONAL PCL Year 2017 analysts briefing 9-Mar-2018 1 Y2017 analysts briefing
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.
Slide 3: Transformation Plan
y ~m& TRANSFORMATION PLAN
Slide 4: Transformation plan (2017)
Transformation plan (2017) 2015 2015-2016 2017 onward Strength Stop bleeding Sustainable Growth Building Profitable & competitive advantages 1. Revenue Management - Automatic Fare Management - Self service check-in - Network Management System enhancement Competitive capability & revenue generating T
Slide 5: Transformation plan (2017)
Transformation plan (2017) 5 Y2017 analysts briefing
Slide 6: Year 2017 Events
Year 2017 Events •Total 100 active aircraft (5xA350-900, 2xB787-9) •PAX carried 24.6 millions, highest in the last 10 years (+ 10.3 % YoY) •THAI won various prizes : 3 prestigious awards at the SKYTRAX 2017: World Airline Awards Ceremony as the World’s Best, Economy Class, World’s Best Airline Lou
Slide 7: Financial Performance
y > N FINANCIAL PERFORMANCE
Slide 8: Performance
Performance Network optimization Service - 10 year long term fleet plan in progress - Continue new BC roll out - Combining TG&WE operation as a - Uplift economy class service single airport at SBIA - WE’s Amadeus Altea implementation - Signed codeshare with PG Commercial Efficient Cost Manag
Slide 9: Year 2017 Operations summary
Year 2017 Operations summary Consolidated Unit : THB’ Billion/ Y’16 Y’17 %change Revenues +180.6 +191.9 +6.3 Pax & Cargo increase Costs -171.4 -184.5 +7.6 Fuel & ASK/RPK increase Interest payments -5.1 -4.5 -11.8 Operating Profit +4.1 +2.9 -29.3 (1-time) Expense -2.5 -1.0 +60.0 Impairment loss (1-ti
Slide 10: Year-2017 Operating profit movement
Year-2017 Operating profit movement Consolidated BU & Other Non Fuel Cost MTHB Y'16 Pax Rev Cargo Rev Rev Fuel Cost & Interest Y'17 18,000 17,000 16,000 +280 +1,694 15,000 14,000 +9,415 13,000 12,000 11,000 10,000 -4,879 9,000 8,000 7,000 6,000 5,000 +4,071 4,000 3,000 +2,856 2,000 -7,725 1,000 - -1
Slide 11: 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 11 Y2017 analysts briefing
Slide 12: Passenger yield
Passenger yield TG Only THB / RPK 3.0 Yield 2014 2.8 Yield 2015 2.6 Yield 2016 2.4 2.2 Yield 2017 2.0 1.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Y2017 analysts briefing
Slide 13: Year-2017 Passenger Yield Analysis
Year-2017 Passenger Yield Analysis Consolidated (THB/RPK) Y’16 Y’17 % Change (Y’17 Rate) Pax Rev 2.29 2.17 -5.24 FX impact 0.06 - - Total Pax Yield 2.35 2.17 -7.66 Passenger Yield by Region Y’16 Y’17 % Change (THB/RPK) Domestic 2.94 2.81 -4.42 Regional 2.74 2.54 -7.30 Intercontinental 1.88 1.72 -8.5
Slide 14: Fuel management
Fuel management Monthly fuel hedging as % of consumption by month 100% 90% 80% 70% 60% 49% 50% 39% 40% 1H’18 30% 19% 20% 2018 10% 0% Q1- Q2 Q3 Q4 Q1- Q2 Q3 Q4 Q1- Q2 Q3 Q4 Q1- Q2 Q3 Q4 Q1- Q2 Q3 Q4 1H- Q3- Q4- 13 14 15 16 17 18 18 18 Note : As of 24-Jan-18 14 Y2017 analysts briefing
Slide 15: Currency break down
Currency break down Foreign Currency Exposure Liability (Jan - Dec 2017) 30 Dec 17 : 160 bn Revenue 30 Dec 16 : 168 bn Expense JPY AUD OTHER CNY 20% JPY 1% 2% 6% OTHER (18%) 28% 3% THB EUR 4% EUR 37% THB (38%) 36% 33% (38%) THB 30% AUD CHF (32%) 6% USD (5%) 51% 7% CNY EUR USD 5%) JPY 10% 6% 8% (9%)
Slide 16: Liabilities by currency
Liabilities by currency Currencies of choice for natural hedging MTHB 250,000 THB 193b THB 176b THB 168b 200,000 3,625 THB 161b 11,000 5,231 THB 160b 24,072 6,800 12,324 11,194 5,400 4,359 10,615 150,000 28,475 2,000 4,270 CHF 33,921 3,000 30,354 ECP 32,126 79,234 ST loan 100,000 68,531 59,812 JPY 6
Slide 17: Outlook for 2018
OUTLOOK FOR 2018 17
Slide 18: 2018 Outlook
2018 Outlook COMPREHENSIVE NETWORK & LONG TERM FLEET UPLIFT • 4 forward TPI planned – adjusting for better network • Take delivery of 5 aircraft : A350-900XWB AEROPOLIS AND MRO AT U-TAPAO 5 STRATEGIES TO BE “SUSTAINABLE TG” AGGRESSIVE PROFIT BUSINESS PORTFOLIO CUMTOMER EXPERIENCES DIGI
Slide 19: Q&A
Q&A 19
Slide 20: Slide 20
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