aav presentation 3q13 final...
TRANSCRIPT
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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3Q13 Financial Highlights
• Revenues:THB 5 595 illi (+26% Y Y)
THB million 3Q13 3Q12 Chg %
TAA– THB 5,595 million (+26% YoY)
• Operating profit:– THB 449 million (+72% YoY)
Revenues 5,595 4,426 +26%
Operating profit 449 260 +72%– EBIT margin 8% (+2 ppts YoY)
• Net profit:– THB 297 million (+59% YoY)
Net profit 297 187 +59%
– Net profit margin 5% (+1 ppt YoY)– EBITDA margin 10% (+4 ppts YoY)
AAV• Revenues:
– THB 5,595 million (+26% YoY)
THB million Conso. 3Q13
Conso. 3Q12
Chg %
Revenues 5,595 4,426 +26%• Net profit (parent):
– THB 158 million (+59% YoY)
Revenues 5,595 4,426 26%
Net profit (parent) 158 100 +59%
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9M13 Financial Highlights
• Revenues:THB 16 984 million (+24% YoY)
THB million 9M13 9M12 Chg %
TAA– THB 16,984 million (+24% YoY)
• Operating profit:– THB 2,096 million (+77% YoY)
Revenues 16,984 13,727 +24%
Operating profit 2,096 1,182 +77%– EBIT margin 12% (+3 ppts YoY)
• Net profit:– THB 1,535 million (+70% YoY)
Net profit 1,535 903 +70%
– Net profit margin 9% (+2 ppts YoY)– EBITDA margin 14% (+5 ppts YoY)
AAV• Revenues:
– THB 16,984 million
THB million Consolidated 9M13
Consolidated 9M12*
Revenues 16,984 10,481• Net profit (parent):
– THB 820 million (+77% YoYexcluding gain on fair value)
Revenues 16,984 10,481
Net profit (parent) 820*** 463**
* Full consolidation from May 2012 onwards
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Full consolidation from May 2012 onwards** Excluded gain on fair value of equity interests THB 14,677 million
in 2Q12*** If excluding FX, net profit (parent) THB 727 million in 9M13
3Q13 Key Highlights• Growing load factor of 83% (+ 1 ppt YoY)
• Passengers carried up 30% YoY beating 27% capacity growth from prior year• Passengers carried up 30% YoY beating 27% capacity growth from prior year
• Average fare soften by 4% YoY from more domestic expansion causing RASKsoften by 1% YoY; yet RASK-CASK jumped 53% YoYsoften by 1% YoY; yet RASK-CASK jumped 53% YoY
• CASK down 3% YoY despite higher jet fuel price while CASK ex-fuel down 5%YoY from economies of scaleYoY from economies of scale
• Having DMK efficiencies with OTP 94%
• 31 aircraft as at 9M13 (+2 in 3Q13)
• Strong TAA’s cash balance• Strong TAAs cash balanceof THB 8.1 billion(net cash position)
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Route NetworkAs at end of: 9M13 2013F
No. of routesDomestic
3615
4318- Domestic
- International1521
1825
No. of daily flights(D I t’l 60 40)
182 238
• Re-introduce Chiang Mai hub in Dec 2013 to cater
(Dom:Int’l -> 60:40)
potential growth
Route movements: Additional frequencies: New destinations:
3Q13 • Bangkok – Chongqing (2nd)• Bangkok – Kuala Lumpur (4th)• Bangkok – Singapore (6th)
4Q13 • Bangkok – Chiang Mai (11th, 12th) (Oct)• Bangkok – Krabi (7th) (Oct)• Bangkok – Hatyai (9th) (Oct)
• Bangkok – Siem Reap (1st, 2nd)(Oct-Nov)• Bangkok – Khon Kaen (1st, 2nd)(Oct)• Bangkok – Kunming (Nov)
• Bangkok – Nakhon Srithamarat (4th) (Nov)• Bangkok – Suratthani (4th) (Nov)• Bangkok – Chiangrei (4th) (Nov)
B k k K bi (8th) (N )
• Bangkok - Naypyitaw (Nov)• Bangkok – Pitsanulok (1st, 2nd) (Nov)• Krabi – Singapore (Nov)
Chi i K bi (D )
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• Bangkok – Krabi (8th) (Nov)• Bangkok – Yangon (4th) (Nov)
• Chiangmai – Krabi (Dec)
4Q13 New Attractions
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Operational Highlights
International Domestic
Growing strong load factorPassengers carried up YoYMillion passengers
6.07.5
+25%
83%
84%
1 53.6 4.5
0.8 1.1
2.43.0
2.0 2.6+30%
82% 82%
1.1 1.5
3Q12 3Q13 9M12 9M13 3Q12 3Q13 9M12 9M13
Continue expanding ASK MillionBaht per pax
Average fare slightly on sideway
1,915 1,842 1,926 1,9057,697
9,358+22%-1%-4%
2,564 3,282+28%
3Q12 3Q13 9M12 9M13 3Q12 3Q13 9M12 9M13* Included fuel surcharge
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Ancillaries Enhancement
341354
336353
+4% YoYAncillary per pax
+5% YoY
2,024
2,660(Baht) +31% YoY
+35% YoY
668905
Ancillary revenue (THB mil.)
+35% YoY
3Q12 3Q13 9M12 9M13
Strategies:
• Introducing “Fly-thru” on selected routes
• Restructuring charging fees methodology
• Enticing combos & add-ons purchases
• Adding more travel-related products
• Working on wifi establishment/approvals
• Revamping website for higher ancillaries
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conversion
Launching Fly-ThruConcept:
• Connecting with convenience from Point A to C with:
(no immigration and airport tax at transit)
• In operation: Dec 2013In operation: Dec 2013
• Fee: Baht 650
• Connecting passengers to/from China, Indochina,
India and domestic (i.e. Krabi, Phuket, Chiang Mai)
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via Don Mueang transit hub
Cost Structure3Q13 3Q12 Change
Cost per ASK (THB) 1.62 1.67 -3%p ( ) 1.62 1.67 3%Cost per ASK ex-fuel (THB) 0.91 0.96 -5%
TAA’ k t j t f l iTAA’s average market jet fuel price (USD per barrel) 121 119 +2
Cost breakdown 9M13:
Guest service D & Others 1% • CASK and CASK ex fuel down
Ramp and i t
and distribution,
5%
Dep. & amort., 2%
Others, 1%
SG&A, 7%• CASK and CASK ex-fuel down
YoY from economies of scaledespite rising jet fuel price YoY
Fuel, 43%
Repair and maintenance,
airport operation, 8%
Aircraft lease
Staff, 10%
9%
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Aircraft lease, 15%
Increasing RASK-CASK Soften Revenue per ASK (RASK)Baht
Downward trend on Costs per ASK (CASK)
Baht
1.67 1.73
1.70
Baht
1.62
3Q12 3Q133Q12 3Q13
Decreasing Cost per ASK ex-fuel (CASK ex-fuel)Baht
Growing RASK - CASKBaht
0.96
0 910.91
0.05 0.08
123Q12 3Q13 3Q12 3Q13
4Q13 & 2014F Looking Forward• Strong load factor momentum; minimal short-term impact from new Chinese
regulation
• 4 more aircraft additions in 4Q13 and 8 additions in 2014F (2013F: 35 aircraft• 4 more aircraft additions in 4Q13 and 8 additions in 2014F (2013F: 35 aircraftbeing 27 OLs vs 8 FLs)
• Achievable 2013F targets of 10 mil. pax and 82% LF (9M13: 7.5 mil. pax and 84%)Achievable 2013F targets of 10 mil. pax and 82% LF (9M13: 7.5 mil. pax and 84%)
• 2013F gearing of 1.4 times
C ti t i th f th Chi I d hi d d ti• Continues tapping growth from southern China, Indochina and domestic
• Enhancing connectivity within our network via fly-thru and potential TAAX
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Potential TAAX contribution
Background:
• JV between 49% AirAsia X in Malaysia• JV between 49% AirAsia X in Malaysia
(AAX) and 51% Thai individuals
Medium haul LCC model flying 6 8 hours• Medium-haul LCC model flying 6-8 hours
• Single-class A330-300 fleet of 377 seats
(365 seats + 12 flat beds)
• Connecting North Asia and Australia
markets to Don Mueang hub
Updates:
• Granted AOL…in progress of acquiring AOC
• Target 2 aircraft at initiation
• Ticket sales in 1Q14
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Ticket sales in 1Q14
Appendix
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3Q13 TAA Statement of Comprehensive IncomeUnit: THB million 3Q13 3Q12 Change %Unit: THB million 3Q13 3Q12 Change %
Revenues 5,595 4,426 +26%
Operating costs (4 910) (3 993) +23%Operating costs (4,910) (3,993) +23%
Other income & gain on FOREX 182 124 +47%
Total SG&A (419) (297) +41%Total SG&A (419) (297) +41%
EBIT 449 260 +72%
Finance costs (50) (0 1) +33536%Finance costs (50) (0.1) +33536%
Income tax (101) (73) +38%
Net profit/ 297 187 +59%Net profit/ Total comprehensive income
297 187 59%
Earnings per share (THB) 6.8 4.3 +59%
Net profit margin 5% 4% +1 ppt
EBIT margin 8% 6% +2 ppts
EBITDA margin 10% 6% +4 ppts
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EBITDAR margin 25% 24% +1 ppt
9M13 TAA Statement of Comprehensive IncomeUnit: THB million 9M13 9M12 Change %Unit: THB million 9M13 9M12 Change %
Revenues 16,984 13,727 +24%
Operating costs (14 271) (12 134) +18%Operating costs (14,271) (12,134) +18%
Other income & gain on FOREX 552 383 +44%
Total SG&A (1 168) (794) +47%Total SG&A (1,168) (794) +47%
EBIT 2,096 1,182 +77%
Finance costs (114) (6) +1705%Finance costs (114) (6) +1705%
Income tax (447) (273) +64%
Net profit/ 1,535 903 +70%Net profit/ Total comprehensive income
1,535 903 70%
Earnings per share (THB) 35.2 21.7 +62%
Net profit margin 9% 7% +2 ppts
EBIT margin 12% 9% +3 ppts
EBITDA margin 14% 9% +5 ppts
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EBITDAR margin 28% 26% +2 ppts
TAA Statement of Financial PositionUnit: THB million 9M13 2012Unit: THB million 9M13 2012
Cash and equivalents 8,089 6,169
Total assets 17 008 10 781Total assets 17,008 10,781
Deferred revenues 4,372 3,582
Finance lease liabilities 4 857 1 920Finance lease liabilities 4,857 1,920
Deferred tax liabilities, net 134 28
Total liabilities 11 577 6 885Total liabilities 11,577 6,885
Paid-up share capital 436 436
Premium on share capital 2,629 2,629Premium on share capital 2,629 2,629
Retained earnings 2,367 832
Total shareholders’ equity 5,431 3,896q y , ,
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3Q13 TAA Key Operational Statistics3Q13 3Q12 Change %3Q13 3Q12 Change %
Passengers carried (million) 2.6 2.0 +30%
Capacity (million seats) 3 1 2 4 +27%Capacity (million seats) 3.1 2.4 +27%
Load factor 83% 82% +1 ppt
RPK (million) 2 769 2 079 +33%RPK (million) 2,769 2,079 +33%
ASK( million) 3,282 2,564 +28%
No of stages flown 17018 13 349 +27%No. of stages flown 17,018 13,349 +27%
Average stage length (km) 1,071 1,067 +0.4%
Average fare (THB) 1,842 1,915 -4%Average fare (THB) 1,842 1,915 4%
RASK (THB) 1.70 1.73 -1%
CASK (THB) 1.62 1.67 -3%( )
CASK ex-fuel (THB) 0.91 0.96 -5%
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9M13 TAA Key Operational Statistics9M13 9M12 Change %9M13 9M12 Change %
Passengers carried (million) 7.5 6.0 +25%
Capacity (million seats) 9 0 73 +23%Capacity (million seats) 9.0 7.3 +23%
Load factor 84% 82% +2 ppts
RPK (million) 7934 6 297 +26%RPK (million) 7,934 6,297 +26%
ASK( million) 9,358 7,697 +22%
No of stages flown 49 830 40 635 +23%No. of stages flown 49,830 40,635 +23%
Average stage length (km) 1,043 1,052 -1%
Average fare (THB) 1,905 1,926 -1%Average fare (THB) 1,905 1,926 1%
RASK (THB) 1.81 1.78 +2%
CASK (THB) 1.65 1.68 -2%( )
CASK ex-fuel (THB) 0.93 0.94 -1%
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3Q13 AAV Statement of Comprehensive IncomeUnit: THB million C lid t d C lid t d Change %Unit: THB million Consolidated
3Q13Consolidated
3Q12Change %
Revenues 5,595 4,426 +26%
Operating costs (4,915) (4,000) +23%
Other income & gain on FOREX 182 124 +47%
Total SG&A (423) (307) +38%
EBIT 440 243 +81%
Finance costs (50) (0.1) +33537%
Income tax (100) (65) +55%
Net profit/ Total comprehensive income
290 178 +62%
Net profit attributable to parent 158 100 +59%
Non-controlling interests 131 79 +67%
Earnings per share (THB) 0.0327 0.0206 +59%
9M13 AAV Statement of Comprehensive IncomeUnit: THB million C lid t d C lid t dUnit: THB million Consolidated
9M13Consolidated
9M12*
Revenues 16,984 10,481
Operating costs (14,288) (9,487)
Other income & gain on FOREX 552 318
Gain on fair value of held equity interests - 14,677
Total SG&A (1,188) (615)
EBIT 1,947 15,371
Finance costs (114) (3)
Income tax (446) (181)
Net profit/ Total comprehensive income
1,502 15,189Total comprehensive income
Net profit attributable to parent 820 15,140
Non-controlling interests 681 49
Earnings per share (THB) 0.1691 3.4083
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* Full consolidation from May 2012 onwards
Unit: THB million Consolidated 9M13 Consolidated 2012
AAV Statement of Financial PositionUnit: THB million Consolidated 9M13 Consolidated 2012
Cash and equivalents 8,092 6,174
Intangible assets 14 869 14 869Intangible assets 14,869 14,869
Goodwill 8,825 8,825
Total assets 40,843 34,609Total assets 40,843 34,609
Deferred revenues 4,372 3,582
Finance lease liabilities 4,857 1,920
Deferred tax liabilities, net 3,135 3,034
Total liabilities 14,587 9,892
Paid-up share capital 485 485
Premium on share capital 2,600 2,600
Other component of equity - (37)
Retained earnings 16,032 15,211
Equity attributable to parent 19,116 18,259
Non-controlling interests 7,140 6,459
l h h ld
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Total shareholders’ equity 26,257 24,718