1Q131Q13 Results PresentationResults Presentation

14 May 2013

DisclaimerThe presentation is dated the day it is given. The delivery of this presentation shall not,under any circumstances, create any implication that there has been no change in theaffairs of the Company since such date. The third party information and statistical data inthis presentation have been obtained from sources the Company believes to be reliable butin no way are warranted by the Company as to accuracy or completeness. Thispresentation may not contain all material information concerning the Company and theinformation set forth in this material is subject to change without noticeinformation set forth in this material is subject to change without notice.

These materials contain forward-looking statements based on the currently held beliefsand assumptions of the management of the Company, which are expressed in good faithand assumptions of the management of the Company, which are expressed in good faithand, in their opinion, reasonable. Forward-looking statements involve risks, uncertaintiesand other factors, some of which are beyond the Company’s control and no assurance ismade as to whether such future events will occur. Actual results, financial condition,

f hi t f th C lt diff t i ll f thperformance or achievements of the Company results may differ materially from thoseexpressed or implied by such forward-looking statements.

This presentation is strictly not to be distributed without the explicit consent of Company’sThis presentation is strictly not to be distributed without the explicit consent of Company smanagement under any circumstances.

2

1Q13 Financial Highlights

• Revenues: THB million 1Q13 1Q12 Chg %

TAA

– THB 6,029 million (+24% YoY)

• Operating profit (EBIT):THB 962 illi (+53% Y Y)

Revenues 6,029 4,868 +24%

Operating profit 962 628 +53%– THB 962 million (+53% YoY)

• Net profit:– THB 739 million (+55% YoY)

Operating profit 962 628 +53%

Net profit 739 478* +55%

* Effect from deferred income taxes THB 144 million( )

• Margins:– Net profit 12% (+2 ppts)

EBIT 16% ( 3 t )

Effect from deferred income taxes THB 144 million

– EBIT 16% (+3 ppts)– EBITDA 17% (+4 ppts)

AAV• Revenues:

THB 6 029 million

AAVTHB million Consolidated

1Q13Proportionate

consolidated 1Q12– THB 6,029 million

• Net profit (parent):– THB 397 million

1Q13 consolidated 1Q12

Revenues 6,029 2,483

Net profit 397 243*

3

Net profit (parent)

39 3

* Effect from deferred income taxes THB 73 million

1Q13 Key Highlights• Maintaining strong load factor of 87%

• Passengers carried up 20% in consistentPassengers carried up 20% in consistentwith capacity growth especially from Chinesetourists

• Average fare up 5% to Baht 1, 995

• RASK up 4% due to higher average fare andi ill igrowing ancillary income per pax

• Stable CASK while CASK ex-fuel down 1%mainly from lower airport chargesmainly from lower airport charges

• Improved DMK efficienciesOTP 90%– OTP 90%

– Aircraft utilization 11.8 hours/day

• 1 aircraft added in 1Q13• 1 aircraft added in 1Q13

• Strong TAA’s cash balance of THB 7.3 billion(net cash position)( p )

4

FleetFleet strategy:Fleet profile:

• 28 aircraft as at 1Q13– 26 aircraft at Don Mueang hub

Fleet strategy:Fleet profile:

• Confirmed 8 new deliveries in FY2013Fg

– 2 aircraft at Phuket hub

• All A320s with single-class 180 seats

• First sharklet arriving end of Jan 2013 and going forwardg

capacity

• Average age of 3 years (1Q13)

• Sharklets – lesser fuel consumption for 3% (confirmed by Airbus)

• 1Q13: – 25 operating leases– 3 finance leases

Unit: AircraftConfirmed fleet expansion:

+7BoeingAirbus

Unit: Aircraft

+8+7 +6

+7+6

12 123 8 12

19 22 27 35 42 48 54 61

6 9 12 12 8 819

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E5

Route Network• Flying to 30 destinations (as at 1Q13)

– 18 international– 12 domestic

• Flying 186 flights daily (as at 1Q13)

• Expansion strategy:– New cities in southern China and Indochina– Increasing market share in all domestic routes

• FY2013F: 2-4 new cities in southern part of China and Indochina

Route movements: 1Q13 FY2013 Outlook

Addi i l f iAdditional frequencies: • Bangkok – Mandalay (4x to daily)• Bangkok – Phnom Penh (2nd)• Bangkok – Nakhon Si Thammarat (3rd)• Bangkok – Hat Yai (8th)

• Bangkok – Hong Kong (3rd) (2Q13 )• Bangkok – Wuhan (2nd) (2Q13 )• Bangkok - Chongqing (2nd) (3Q13 )• Bangkok – Phuket (10th) (2Q13 )Bangkok Hat Yai (8 )

• Bangkok – Krabi (6th)• Bangkok – Chiang Mai (10th)• Chiang Mai – Hat Yai (2nd)

Bangkok Phuket (10 ) (2Q13 )• New routes in 4Q13

6

Operational Highlights

International Domestic87% 87%

Maintain strong load factorPassengers carried up YoYMillion passengers

3 3

8.3

5.76.9

80%82%

87% 87%

3.3 4.0 5.0

1 3 1 6

2.42.9

3.3

0.8 1.02.1 2.6

5.7+20% 78%

1.3 1.6

2010 2011 2012 1Q12 1Q13 2010 2011 2012 1Q12 1Q13

Continue expanding ASK MillionBaht per pax

Growing average fare YoY

7,6059,199

10,4991,804 1,942 1,977 1,904 1,995

+5%

2,540 3,012

+19%

2010 2011 2012 1Q12 1Q1372010 2011 2012 1Q12 1Q13

* Included fuel surcharge

Ancillary Revenue

296

383 354 354 357% of revenue% of revenue

1,6872,627 2,941

754 914

14%16% 15% 15% 15%

754 914

2010 2011 2012 1Q12 1Q13 2010 2011 2012 1Q12 1Q13

Million Baht Baht per pax

• Ancillary income growth 21% YoY and 11% QoQ• Ancillary income growth 21% YoY and 11% QoQ

• Ancillary per pax up 1% YoY, given 20% increase din passengers carried

• Ancillary income accounted for 15% of revenuey

• 2013 target: spending per pax to return to 2011 level via promotional campaign and newlevel via promotional campaign and new innovative products

88

Cost Structure1Q13 1Q12 Change

Cost per ASK (THB) 1.71 1.71 -p ( ) 1.71 1.71Cost per ASK ex-fuel (THB) 0.96 0.97 -1%

TAA’ k t j t f l iTAA’s average market jet fuel price (USD per barrel) 129 127 +2

Cost breakdown 1Q13:

Guest service Others 1%

• Stable CASK despite the higherjet f el price YoY

Ramp and

and distribution,

5%

Dep. & amort., 1%

Others, 1%SG&A, 8%

jet fuel price YoY

• CASK ex-fuel down 1% mainlyFuel, 44%

Repair and maintenance,

airport operation, 7%

from lower airport charges

• Depreciation mainly rose from

Aircraft lease

Staff, 10%

9%ep ec a o a y o e o

3 new aircraft into our book,accounting for 1% of totaloperating costs

9

Aircraft lease, 15%

p g

2013 Key Points…• Confirm 8 aircraft addition in 2013

Continue ramping up frequencies in domestic (i e• Continue ramping up frequencies in domestic (i.e.Phuket, Chiang Mai, Hat Yai, Krabi), China andIndochina; expecting new destinations in 4Q13

• Target 10 million passengers and 82% load factor

• Maintain average fare at 1Q13 level despite strongcapacity growth

• Boost up ancillary revenue to 2011 level

• Continue maximizing efficiencies at DMKg

• Having all new deliveries into our book given strongcash balance (1Q13: THB 7.3 billion)cash balance (1Q13: THB 7.3 billion)

• Continue to heavily promote Chinese market

10

Appendix

11

1Q13 TAA Statement of Comprehensive IncomeUnit: THB million 1Q13 1Q12 Change %Unit: THB million 1Q13 1Q12 Change %

Revenues 6,029 4,868 +24%

Operating costs (4 735) (4 031) +17%Operating costs (4,735) (4,031) +17%

Other income & gain on FOREX 96 100 -4%

Total SG&A (428) (309) +38%Total SG&A (428) (309) +38%

EBIT 962 628 +53%

Finance costs (27) (6) +358%Finance costs (27) (6) +358%

Income tax (195) (144)* +35%

Net profit/ 739 478 +55%Net profit/ Total comprehensive income

739 478 55%

Earnings per share (THB) 17 12 +42%

EBIT margin 16% 13% +3 ppts

EBITDA margin 17% 13% +4 ppts

EBITDAR margin 30% 29% +1 ppt

12

* Effect from deferred income taxes; refer to TAA’s notes to interim financial information no. 4.1 and 10

TAA Statement of Financial PositionUnit: THB million 1Q13 2012Unit: THB million 1Q13 2012

Cash and equivalents 7,269 6,169

Total assets 13 296 10 781Total assets 13,296 10,781

Deferred revenues 4,013 3,582

Deferred tax liabilities net 46 28*Deferred tax liabilities, net 46 28

Total liabilities 8,661 6,885

Paid-up share capital 436 436Paid up share capital 436 436

Premium on share capital 2,629 2,629

Retained earnings (deficits) 1,571 832*Retained earnings (deficits) 1,571 832

Total shareholders’ equity 4,635 3,896

* Effect from deferred income taxes; refer to TAA’s notes to interim financial information no. 4.1 and 10;

13

1Q13 TAA Key Operational Statistics1Q13 1Q12 Change %1Q13 1Q12 Change %

Passengers carried (million) 2.6 2.1 +20%

Capacity (million seats) 3 0 2 5 +20%Capacity (million seats) 3.0 2.5 +20%

Load factor 87% 87% -

RPK (million) 2 614 2 174 +20%RPK (million) 2,614 2,174 +20%

ASK( million) 3,012 2,540 +19%

No of stages flown 16 454 13 662 +20%No. of stages flown 16,454 13,662 +20%

Average stage length (km) 1,017 1,033 -2%

Average fare (THB) 1,995 1,904 +5%Average fare (THB) 1,995 1,904 5%

RASK (THB) 2.00 1.92 +4%

CASK (THB) 1.71 1.71 -( )

CASK ex-fuel (THB) 0.96 0.97 -1%

14

1Q13 AAV Statement of Comprehensive IncomeUnit: THB million C lid t d P ti tUnit: THB million Consolidated

1Q13Proportionate

consolidated 1Q12

Revenues 6,029 2,483

Operating costs (4,741) (2,056)

Other income & gain on FOREX 96 51

Total SG&A (436) (158)

EBIT 948 320

Finance costs (27) (3)

Income tax (195) (73)*

Net profit 726 243

Net profit attributable to parent 397 243

Non-controlling interests 329 -

Total comprehensive income 726 243Total comprehensive income 726 243

Earnings per share (THB) 0.08 0.06

15

* Effect from deferred income taxes; refer to AAV’s notes to interim financial information no. 4.1 and 12

Unit: THB million Consolidated 1Q13 Consolidated 2012

AAV Statement of Financial PositionUnit: THB million Consolidated 1Q13 Consolidated 2012

Cash and equivalents 7,272 6,174

Intangible assets 14 869 14 869Intangible assets 14,869 14,869

Goodwill 8,825 8,825

Total assets 37,132 34,609Total assets 37,132 34,609

Deferred revenues 4,013 3,582

Finance lease liabilities 2,924 1,920

Deferred tax liabilities, net 3,050 3,034*

Total liabilities 11,666 9,892

Paid-up share capital 485 485

Premium on share capital 2,600 2,600

Other component of equity (15) (37)*

Retained earnings (deficits) 15,609 15,211*

Equity attributable to parent 18,678 18,259

Non-controlling interests 6,787 6,459*

l h h ldTotal shareholders’ equity 25,466 24,718

16* Effect from deferred income taxes; refer to AAV’s notes to interim financial information no. 4.1 and 12

Restatement Based on TFRS 3 Business Combination

In 1Q13, AAV had completed measuring the fair value of identifiable assets acquiredand liabilities assumed of TAA according to TFRS 3 “Business combinations” thatth i (AAV) h ll t ti l dj t th i i l t i dthe acquirer (AAV) shall retrospectively adjust the provisional amounts recognizedat the acquisition date (4 May 2012) within a year after such date. The effects to theconsolidated statement of financial position as at 31 December 2012 are as follows:

Effects Amount in THB million

Inventories increased 21Inventories increased 21

General investment increased 1

Leasehold improvements and equipment net increased 152Leasehold improvements and equipment, net increased 152

Intangible assets, net increased 1

Goodwill increased 1,410Goodwill increased 1,410

Deferred tax liabilities, net increased 3,006

Non-controlling interests decreased 1,386Non controlling interests decreased ,

Retained earnings decreased 35

* Refer to AAV’s notes to interim financial information no. 5

17