Thai Airways International Public Co. Ltd. · SET:THAI
Thai Airways International Public — Q2 2007 Earnings Presentation
31 slides from Thai Airways International Public's earnings presentation, 2007
Slide 1: Thai Airways International Pcl. Investor Relations
Thai Airways International Pcl. Investor Relations
Slide 2: Table of Contents
Table of Contents 1. Statistical Update 2. Status Update 3. Suvarnabhumi Airport 4. Financial Performance 5. Going Forward Investor Relations Department 2
Slide 3: 1. Statistical Update
1.Statistical 1.Statistical Update Update Investor Relations Department 3
Slide 4: Shareholders
1. Statistical Update Shareholders Shareholders • Other Shareholders 27.05% • Chase Nominees Limited (3.85%) • Vayupak Fund 1 (Krung • Vayupak Fund • Ministry of Finance Thai Asset 1 (MFC Asset 53.76% Management Management pcl.) pcl.) 7.67% 7.67% Investor Relations Department 4
Slide 5: Operations of Subsidiaries and Associated Companies
1. Statistical Update Operations Operations of of Subsidiaries Subsidiaries and and Associated Associated Companies 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
Slide 6: Statistical Update: destinations, fleet, staff
1. Statistical Update As of Mar. 2007 • Destinations : Domestic = 11 International = 62 • Continents served : 5 • Total aircraft in fleet : 91 of which 5 are leased to Nok Air • Flight frequency per week : International Routes 587 Flts/Week Domestic Routes 368 Flts/Week • Monthly passengers carried
Slide 7: Statistical Update: revenue and load factors
1. Statistical Update As of Mar. 2007 • Record revenue earned : 49,597 MTHB ; +7.57% • Million Available Seat Kms. (MASK) : 19,122 ; +7.99% • Million Revenue Passenger Kms. (MRPK) : 15,369 ; +13.09% • Cabin factor : 80.4% ; +4.82% • Freight load factor : 52.4% ; -0.48% • Load factor : 70.3% ; +2.85%
Slide 8: Statistical Update Cont'd: Aircraft fleet
1. Statistical Update Cont’d As of Apr. 2007 Type of Aircraft Owned Operating Lease Total A300-600/A300-600R 20 - 20 A330-300 10 2 12 ATR72 2 - 2 B737-400 6 4 10 B747-300 2 - 2 B747-400 16 2 18 B777-200 4 4 8 B777-200 ER 4 - 4 B777-300 6 - 6 A340-500 4 - 4 A340-600 5 - 5 Total 79 12 91 Investor Rela
Slide 9: 2. Status Update
2. Status Update Investor Relations Department 9
Slide 10: Airbus A380
2. Status Update Airbus A380 • Current order book - 6 aircraft • Delay of approximately 22 months • Options under discussion with Airbus : • Attractive price for the A380s • Attractive price for replacement mid-range aircraft (A330-300) • Option to cancel still effective Investor Relations Departmen
Slide 11: Dual Airport Status
2. Status Update Dual Airport Status • Don Muang Airport (old international airport) – Domestic point-to-point service • International flights to remain at Suvarnabhumi International Airport (SBIA) • THAI & Star Alliance to remain at SBIA • THAI’s secondary domestic routes likely to be moved to Don
Slide 12: Fuel & Fuel Surcharge
2. Status Update Fuel & Fuel Surcharge • Fuel hedging up to 50% of year’s demand but flexible • Current hedging approximately 30% on 3 month rolling basis • Hedging increase subject to fuel price trend • Fuel surcharge : Intercontinental – USD 55-65 per sector Regional – USD 20-35 per sector Domesti
Slide 13: STAR ALLIANCE – Economic Contribution
2. Status Update STAR ALLIANCE – Economic Contribution Incremental Member Revenue • Network Effect – Interline sales & enhance connectivity • Loyalty Effect – Recurring business through Alliance member traffic • Alliance Sales – Cross-selling of member airline tickets Gross Benefit Member Cost Savin
Slide 14: 3. Suvarnabhumi Airport
3. Suvarnabhumi Airport Investor Relations Department 14
Slide 15: 3. Suvarnabhumi Airport
3. Suvarnabhumi Airport Investor Relations Department 15
Slide 16: 3. Suvarnabhumi Airport Cont'd
3.Suvarnabhumi Airport Cont’d Investor Relations Department 16
Slide 17: THAI's Activities @ Suvarnabhumi Airport
THAI’s Activities @ Suvarnabhumi Airport Investor Relations Department 17
Slide 18: THAI's New Look
THAI’s New Look Investor Relations Department 18
Slide 19: THAI's New Look
THAI’s New Look Investor Relations Department 19
Slide 20: 4. Financial Performance
4. Financial Performance Investor Relations Department 20
Slide 21: Revenue Breakdown – Q2
4. Financial Performance Revenue Breakdown – Q2 06 Revenue Breakdown – Q2 07 Cargo Mail Cargo Mail 13.6% 0.5% 12.4% 0.4% Others Others 4.8% 4.9% Passenger Passenger 81.1% 82.2% Investor Relations Department 21
Slide 22: Passenger Revenue
4. Financial Performance Passenger Revenue Units : THB mn 200,000 165,048 182,568 180,000 • 7% CAGR for both Total 160,000 154,052 143,401 Revenue and Passenger 140,000 129,681 135,246 129,234 122,466 Revenue growth 120,000 106,409 102,196 100,000 • Passenger revenue increased 80,000 ...yoy by 8.99%
Slide 23: Operating Expense
4. Financial Performance Operating Expense Units : MTHB 180,000 170,239 151,663 160,000 132,106 • Total expense increased yoy 140,000 120,000 110,307 117,230 by 7.15% 100,000 • Higher personnel cost 80,000 • Higher flight operation cost 60,000 40,523 43,420 40,000 • Higher depreciation change 20,000
Slide 24: Operating Expense breakdown
Financial Performance Operating Expense •Personnel expense – Baht mn 16.25% of total expense 45,000 1,578 • Aircraft Fuel expense – 40,000 1,324 4,383 3,914 32.28% of total expense 35,000 1,290 10,879 • Inventories and Supply expense - 30,000 863 3,195 9,141 2,985 6.21% of total expense 25,000 8,823
Slide 25: Net Profit and Cabin Factor
4. Financial Performance Units : THB mn 14000 12,079 12000 Net Profit 10,182 10,077 8,991 10000 8000 6,777 • Yoy net profit lower from less FX gain 6,205 6000 4,233 4000 2000 0 2002 2003 2004 2005 2006 Q206 Q207 Units : % Cabin Factor 82 80.4 80 78 76.7 • Active marketing targeting premium class 75.
Slide 26: Net Debt/Equity Ratio
4. Financial Performance Net Debt/Equity Ratio Billion Baht times 143 5.0 140 121 117 118 115 119 120 3.0 • Debt reflects investments in 3.2 101 100 new aircraft 1.9 2.1 1.8 1.7 1.7 1.0 80 67 71 65 54 59 • Repayments from strong cash 60 -1.0 flow will keep D/E in check 36 40 28 -3.0 20 0 -5.0 2002 2
Slide 27: 5. Going Forward
5. Going Forward Investor Relations Department 27
Slide 28: 5. Going Forward
5. Going Forward • Internal Streamlining - continue restructuring • Enhance Asset Management – increase aircraft utilization • Increase Frequency - to profitable routes (China, India, Japan) • Build on Existing Strengths - using SBIA as a hub Investor Relations Department 28
Slide 29: 5. Going Forward
5. Going Forward Investor Relations Department 29
Slide 30: 5. Going Forward
5. Going Forward Investor Relations Department 30
Slide 31: 5. Going Forward
5. Going Forward Investor Relations Department 31
Thai Airways International Public Company — Q2 2007 Earnings Presentation on 6ix