3Q123Q12Results

Presentation

14 November 2012

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.

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3Q12 - Key Highlights• Strong revenue growth:

– AAV: THB 4,426 vs THB 1,894 in 3Q11 (51% proportionate)– TAA: THB 4,426 (+16.8%)TAA: THB 4,426 ( 16.8%)

• Load factor of 82% (+2 ppts)

R f ill• Recovery of ancillary revenue– +6.4% YoY– +11.0% QoQ

• TAA: improved gross margin to 9.8% (vs 8.5% in 3Q11)

• TAA: strong EBIT performanceg p– Growth of +22.9% YoY– Margin of 5.9% (vs. 5.6% in 3Q11)

• Net profit growth:– AAV (parent): THB 108 (+12.7% YoY)– TAA: THB 199 (+2.8% YoY)

• New home at Don Mueang Airport (1 October 2012)

• One new aircraft delivery in 3Q12 (firstly owned finance lease aircraft)• One new aircraft delivery in 3Q12 (firstly owned, finance lease aircraft)

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Financial HighlightsAAVAAVTHB million Consolidated

3Q12Proportionate

consolidated 3Q11Consolidated

9M12Proportionate

consolidated 9M11

Revenues 4,426 1,894 10,481 5,891

Net profit (parent) 108 96 15,241* 705

* Included gain on fair value of THB 14.7 billion in 2Q12

TAATHB million 3Q12 3Q11 Chg % 9M12 9M11 Chg %

Revenues 4,426 3,788 +16.8% 13,727 11,781 +16.5%

Net profit 199 194 +2.8% 1,067 1,413 -24.5%

• 3Q12 revenue up 16.8% YoY from strong passengers growth with 2 ppt higher load factor of 82% and from ancillary revenues recovery.

Net profit 199 194 2.8% 1,067 1,413 24.5%

y y

• Net profit up 2.8% given THB61 million tax in 3Q12; EBT up 34.3% given higher operational costs (fuel, aircraft rental and maintenance) and promotional expenses.

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3Q12 and 9M12 Operational Highlights

82%InternationalD ti 6 0

Load factor up YoYPassengers carried up YoYMillion passengers

82%81%

82%

2.22.4

Domestic5.0

6.0

80%

0 9 1 12.8 3.6

0.7 0.8

2.2

1.6 2.0

3Q11 3Q12 9M11 9M12

0.9 1.1

3Q11 3Q12 9M11 9M12

7,697

ASK vs RPK on the up trendMillionASKBaht per pax

Average fare slightly drop 3Q YoY; still up 9M YoY

6,766

5,494

6,297 RPKS

1,929 1,915 1,921 1,926

2,269 2,564 1,813 2,079

3Q11 3Q12 9M11 9M125

3Q11 3Q12 9M11 9M12* Included fuel surcharge

Fleet Strategy• 25 aircraft as at 30 Sep 2012

– 22 aircraft at Don Mueang hub2 aircraft at Phuket hub– 2 aircraft at Phuket hub

– 1 aircraft at Chiang Mai hub

• Single-class 180 seats capacity (vs 148 seats for Boeing)

CNX: 1 A320

• Single-class 180 seats capacity (vs 148 seats for Boeing)

• Two deliveries (Oct and Nov)

DMK: 22 A320s

HKT: 2 A320s

• FY2012: 2 finance leases vs 25 operating leases

• FY2013F: confirmed 6 new deliveries

HKT: 2 A320s

Boeing AirbusAircraft

Confirmed fleet expansion

48

6 9 12 12 8 8

3 8 1219 22 27 33 38 43 48

6

6

2004

2005

2006

2007

2008

2009

2010

2011

2012E

2013E

2014E

2015E

2016E

Route Network Strategy• Flying to 30 destinations (end of 2012)

– 18 international– 12 domestic

• Flying approximately 174 flights daily (end of 2012)

• Expansion strategy:– New cities in southern China and Indochina– Building market dominance in all domestic routes– Adding frequencies in dominant destinations

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

Route movements: 9M12 4Q12 outlookRoute movements: 9M12 4Q12 outlook

New routes: • Bangkok – Nakhorn Phanom (1Q12)• Bangkok – Trang (1Q12)• Bangkok – Chennai (1Q12)

• BKK - Mandalay (Myanmar)• BKK - Wuhan (China)• BKK - Xi’an (China)• Bangkok – Chennai (1Q12)

• Bangkok – Chongqing (1Q12)• Chiang Mai – Macau (2Q12)

• BKK - Xi an (China)

Additional frequencies: • Bangkok – Singapore (1Q12) • BKK - Yangon (3rd frequency)Additional frequencies: • Bangkok – Singapore (1Q12)• Bangkok – Chiang Mai (1Q12)• Bangkok – Trang (2Q12)

• BKK - Yangon (3 frequency)• BKK – Ho Chi Minh city (3rd frequency)• BKK - Surat Thani (3rd frequency)• BKK - Hat Yai (7th frequency)

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• BKK – Krabi (5th frequency)• BKK – Trang (3td frequency)• BKK – Chiang Mai (8th frequency)

Ancillary Revenue Recovery% f% f390

311 341385

336% of revenue% of revenue

17% 15% 16% 15%

628 602 668

1,943 2,024

3Q11 3Q12 9M11 9M12

628 602 668

3Q11 2Q12 3Q12 9M11 9M12

Million Baht Baht per pax

• 3Q12 ancillary recovered YoY and QoQ as the unit price of bagging handling fees has been readjusted at the end of 2Q12been readjusted at the end of 2Q12

• Ancillary products in the pipeline

– Red carpet

– Lounge

– Fly-thru

– In-flight entertainment and etc.

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Cost structure3Q12 3Q11 Change

Cost per ASK (THB) 1.67 1.62 +0.05 (+3.3%)p ( ) 1.67 1.62 0.05 ( 3.3%)Cost per ASK ex-fuel (THB) 0.96 0.92 +0.04 (+4.9%)

CASK i 3Q12 i tt ib t bl t hi h ti i f l t ( i l d t

Average market jet fuel price (USD per barrel) 119 127 -8

• CASK up in 3Q12 primary attributable to higher consumption in fuel costs (mainly due toairport’s one-runway closure and to bad weather), higher aircraft rental and maintenancefrom larger fleet, despite lower average fuel price

Cost breakdo n 3Q12 F el hedgingCost breakdown 3Q12:

d

Guest service and

distribution, Others, 1%

SG&A, 7%• 30% - 40% to match with

f d b ki

Fuel hedging:

Fuel, 43%

Repair and maintenance,

8%

5%, forward bookings

• Up to 32% for 4Q12

Ramp and airport

Staff, 9%

9Aircraft lease, 18%

poperation, 9%

Don Mueang Operation Update• All domestic and international flights operate services

from Don Mueang Airport since 1 October 2012

• Upside:– More check-in counters– Shorter runway and baggage transport– Shorter time in & out for passengers– Much less congestiong– Much more terminal capacity for growth– More capture on domestic market (closer

to city)to city)

• Savings:g– Incentive package from AOT:

Year 1 30%; Year 2 20%; Year 3 10%

– Improved in efficiency, expecting to reflect through 1%-2% of fuel saving per year

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Better efficiencies and growth support

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Better efficiencies and growth support

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Key Points and Looking Forward…• Continued strong market demand

– Moving into high-season tourismStronger foothold in domestic at Don Mueang hub– Stronger foothold in domestic at Don Mueang hub

– Adding six upcoming 2013 new deliveries into the fleet

• Moving toward ‘load-active’ whilst maintaining yieldMoving toward load active whilst maintaining yield– Tapping new market demand especially in China and Indochina– Striving for market dominance under domestic operation– Balancing fierce competition against yield sustainabilityBalancing fierce competition against yield sustainability

• Continued ancillary revenue recovery and boost– More room to growth on pricing and new innovations

• Expected savings from Don Mueang operation– Better operational efficiencies – Expecting lower fuel costs and airport charges– Higher demand from domestic; building more international presence

• Healthy balance sheet for future aircraft financing• Healthy balance sheet for future aircraft financing– Cash balance of THB 5.1 billion (9M12)– Two owned aircraft in our book (FY2012)

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Appendix

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3Q12 AAV Statements of Comprehensive Income

Unit: THB million Consolidated 3Q12

Proportionateconsolidated 3Q11

R 4 426 1 894Revenues 4,426 1,894

Operating costs (3,993) (1,734)

Other income & gain on FOREX 124 49Other income & gain on FOREX 124 49

Total SG&A (299) (105)

EBIT 258 105EBIT 258 105

Finance costs (0.1) (9)

Income tax (61) -Income tax (61)

Net profit 197 96

Profit attributable to parent 108 96Profit attributable to parent 108 96

Non-controlling interests 90 -

Earnings per share (THB) 0.02 0.02

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9M12 AAV Statements of Comprehensive IncomeUnit: THB million Consolidated

9M12Proportionate

consolidated 9M11

Revenues 10 481 5 891Revenues 10,481 5,891

Operating costs (9,467) (5,056)

Other income & gain on FOREX 318 234Other income & gain on FOREX 318 234

Gain on fair value 14,690 -

Total SG&A (596) (277)( ) ( )

EBIT 15,426 792

Finance costs (3) (87)( ) ( )

Income tax (109) -

Net profit 15,313 705

Profit attributable to parent 15,241 705

Non-controlling interests 72 -

Earnings per share (THB) 3.43 0.17

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AAV Statements of Financial PositionUnit: THB million Consolidated

9M12Proportionate

consolidated FY11

Cash and equivalents 5 118 735Cash and equivalents 5,118 735

Intangible assets 14,869 7

Goodwill 7,415 286Goodwill 7,415 286

Total assets 30,815 2,223

Deferred revenues 3,199 1,385, ,

Total liabilities 5,402 2,216

Paid-up share capital 485 410p p

Premium on share capital 2,602 -

Other component of equity (51) (16)

Retained earnings (deficits) 14,854 (387)

Equity attributable to parent 17,890 7

Non-controlling interests 7,523 -

Total shareholders’ equity 25,413 7

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3Q12 TAA Statement of Comprehensive Income

Unit: THB million 3Q12 3Q11 Change %

Revenues 4,426 3,788 +16.8%

Operating costs (3,993) (3,467) +15.2%

Other income & gain on FOREX 124 99 +25.3%

Total SG&A (297) (208) +42.6%

EBIT 260 212 +22.9%

Finance costs (0.1) (18) -99.2%

Income tax (61) - +100%

Net profit 199 194 +2.8%

Earnings per share (THB) 4.57 4.84 -5.6%

EBIT margin 5.9% 5.6% +0.3 ppt

EBITDA margin 6.3% 6.1% +0.2 ppt

EBITDAR margin 24.2% 24.5% -0.3 ppt

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9M12 TAA Statement of Comprehensive Income

Unit: THB million 9M12 9M11 Change %

Revenues 13,727 11,781 +16.5%

Operating costs (12,134) (10,112) +20.0%

Other income & gain on FOREX 383 469 -18.2%

Total SG&A (794) (551) +44.1%

EBIT 1,182 1,587 -25.5%

Finance costs (6) (174) -96.4%

Income tax (109) - +100%

Net profit 1,066 1,413 -24.5%

Earnings per share (THB) 25.62 35.33 -27.5%

EBIT margin 8.6% 13.5% -4.9 ppts

EBITDA margin 9.0% 13.9% -4.9 ppts

EBITDAR margin 26.1% 31.0% -4.9 ppts

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TAA Statements of Financial Position

Unit: THB million 9M12 FY11

Cash and equivalents 5,086 1,439

Total assets 8,561 3,790

Deferred revenues 3,199 2,716

Total liabilities 5,377 4,336

Paid-up share capital 436 400

Premium on share capital 2,629 1

Retained earnings (deficits) 119 (947)

Total shareholders’ equity 3,184 (546)

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3Q12 TAA Key Operational Statistics

3Q12 3Q11 Change %

Passengers carried (million) 2.0 1.6 +21.8%

Capacity (million seats) 2.4 2.0 +18.9%

Load factor 82% 80% +2 ppts

RPK (million) 2,079 1,813 +14.6%

ASK( million) 2,564 2,269 +13.0%

No. of stages flown 13,349 11,228 +18.9%

Average stage length (km) 1,067 1,123 -4.9%

Average fare (THB) 1,915 1,929 -0.7%

RASK (THB) 1.73 1.67 +3.4%

CASK (THB) 1.67 1.62 +3.3%

CASK ex-fuel (THB) 0.96 0.92 +4.9%

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9M12 TAA Key Operational Statistics

9M12 9M11 Change %

Passengers carried (million) 6.0 5.0 +19.6%

Capacity (million seats) 7.3 6.2 +17.2%

Load factor 82% 81% +1 ppt

RPK (million) 6,297 5,494 +14.6%

ASK( million) 7,697 6,766 +13.8%

No. of stages flown 40,635 34,661 +17.2%

Average stage length (km) 1,052 1,084 -3.0%

Average fare (THB) 1,926 1,921 +0.3%

RASK (THB) 1.78 1.74 +2.4%

CASK (THB) 1.68 1.58 +6.6%

CASK ex-fuel (THB) 0.94 0.89 +6.5%

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