bangkok airways - ba.listedcompany.com · information contained in our presentation is intended...
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Bangkok Airways1Q2017
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Information contained in our presentation is intended solely for your reference.
Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company.
In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance.
These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct.
Actual results may differ materially from those projected.
Disclaimer 2
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Market Overview 3
International Visitor Arrival to Thailand(All Modes of Transportation)
Source : Department of Tourism Y2014-Jan-Mar2017Fiscal Policy Office, Y2016-Y2017
Unit: Million
Source : Department of Tourism
APAC + Australasia -1% +3%
China -7% +33%
Europe +6% -3%
Middle East +15% +3%
Grand Total +2% +2%
IVA to Thailand BA
%Change
(1Q2016 vs 1Q2017)Region
26.74 24.8229.85
32.60
9.04 9.19
37.2
Y2013 Y2014 Y2015 Y2016 1Q2016 1Q2017 Y2017(F)
-7%
+20%+9%
+2%
+14%
%Change ComparisonInternational Visitor to Thailand vs Bangkok Airways
Airline Industry in Global (1Q2017)
RPK : +7%
ASK : +6%
Fare : -10%Source : IATA
+15%
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Operating Statistics 1Q-17 4
Passenger (Thousand)1,623 (+3%)
1Q-16 : 1,580
RPK (Million Seat-Km.)
1,230 (+7%)
1Q-16 : 1,154
ASK (Million Seat-Km.)
1,728 (+11%)
1Q-16 : 1,551
RASK(THB/ASK)3.74 (-15%)
1Q-16 : 4.42
CASK(THB/ASK)3.36 (+2%)
1Q-16 : 3.29
Unit Margin(THB/ASK)0.38 (-66%)
1Q-16 : 1.13
Total Revenue(MB)
7,469 (-4%)
1Q-16 : 7,776
Net Profit(MB)
565 (-64%)
1Q-16 : 1,575
EBITDAR(MB)
1,991 (-30%)
1Q-16 : 2,851
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Boutique Airline
• Lounges for all passengers
• Meals on board
• Unique network covering 25+ tourist destinations
Own & Operate 3 Resort Style Airports
• Samui
• Sukhothai
• Trat
3 Airport Related Services at BKK Airport
• Catering Service
• Ramp & Ground Service
• Cargo Terminal
Strategic Investment
• 7.83% in BDMS
• 33% in SPF
4 Key Components to Support Sustainable Growth 5
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BAC : Improving profit from new customers 6
Key Highlight
BA holds 90%
No. of customer = 24 (+6 YoY)
Meal Uplift : 2.95 Million (+6%YoY)
AVG Meal per day : 32,790 Meals (+7%YoY)
Developments :
BAC Phuket – Expected to operate in 3Q2017(Capacity : 10,000 Meals/Day)
Gourmet Primo – Expected to operate in 4Q2017
BAC Chiang Mai – Expected to operate in Y2018
Major Customers :
New Customers :
386 443
1,350 1,456 1,456
126 133372 432 419
85 91267 285 276
33%
30% 28%30%
29%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0200400600800
1,0001,2001,4001,6001,8002,0002,2002,4002,600
1Q-16 1Q-17 Y2014 Y2015 Y2016
Revenue (MB) EBITDA (MB) Net Profit (MB) EBITDA Margin (%)
BAC 25%
Others 75%
Market Share
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BFS Ground : Steady growth in performance 7
Key Highlight
BA holds 98.88%
No. of customer = 70 (+2 YoY)
The first & only ISAGO certified operator in BKK airport
No. of flights serviced : 17,460 Flights (+10%YoY)
Revenue +8%YoY
Net Profit +35%YoY
Major Customers :
New Customers :
599 648
1,9492,130
2,383
120 147246 305
405
71 95 111 146255
20%
23%
13%14%
17%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1Q-16 1Q-17 Y2014 Y2015 Y2016
Revenue (MB) EBITDA (MB) Net Profit (MB) EBITDA Margin (%)
BFS Ground
56%
Others44%
Market Share
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BFS Cargo : Strong Profit from Pricing Adjustment 8
Key Highlight
BA holds 49%
No. of customer = 64 (+2 YoY)
The first & only ISAGO certified operator in BKK airport
Revenue +13%YoY
Net Profit +29%YoY
Major Customers :
New Customers :
401 453
1,558 1,5681,702
170 208
684 672773
111 144
454 444 527
42%
46%
44%43%
46%
30.0%
32.0%
34.0%
36.0%
38.0%
40.0%
42.0%
44.0%
46.0%
48.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1Q-16 1Q-17 Y2014 Y2015 Y2016
Revenue (MB) EBITDA (MB) Net Profit (MB) EBITDA Margin (%)
BFS Cargo 49%
Others51%
Market Share
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Boutique Airline
• Lounges for all passengers
• Meals on board
• Unique network covering 25+ tourist destinations
Own & Operate 3 Resort Style Airports
• Samui
• Sukhothai
• Trat
3 Airport Related Services at BKK Airport
• Catering Service
• Ramp & Ground Service
• Cargo Terminal
Strategic Investment
• 7.83% in BDMS
• 33% in SPF
4 Key Components to Support Bsuiness Growth 9
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Fare Pressure due to high competition affected Revenue 10
Passenger Revenue
Unit: MB & %Proportion
Key Highlight – All Routes
Passenger Revenue : -4%YoY (Mainly from Samui Domestic)
Average Fare : -6%YoY
Passenger : +3%YoY (All routes)
Samui Indochina Domestic (excl. Samui & Indochina) International (Others)
1Q-16 1Q-17 Y2014 Y2015 Y2016
18,064
47%
22%
25%
6%
19,517
+8%
46%
22%
26%
6%
20,761
+6%
47%
22%
24%
7%
47%22%25%6%
49%20%26%5%
6,279 6,042
-4%
Samui-Domestic 37%
Samui-International 12%
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International Point of Sale (POS) was main Revenue Contribution11
Europe + Middle East
28% (-6%YoY)
1Q-17
APAC + Australasia (excl Thailand)
26% (-3%YoY)
1Q-17
Thailand only
21% (+2%YoY)
1Q-17
www.bangkokair.com
19% (-10%YoY)
1Q-17
>70%Booking
from Abroad
POS dropped mainly from
Germany (-18%YoY)
UK (-14%YoY)
Myanmar (-27%)
Cambodia (-12%)
Key Highlight (Y2017-18)
More Seat Capacity from EU &
Asia to BKK, SIN & KUL
approximately +12% per Year*
*Remark: Existing & Potential Codeshare Partners including Thai Airways provided %Growth
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Gain more Proportion on Passenger Revenue 12
Codeshare Partners : Currently 22 partners
Xiamen Air – New Codeshare Partner
Passenger Revenue from Xiamen Air +127%YoY
Y2017 : Expected 1 Airline in Hong Kong + 3 Airlines in Asia
% of Passenger Revenue (Codeshare & Interline)
Interline Partners Updates : Currently +70 partners
Top 5 Interline Partners (Passenger Revenue Contribution)
Target additional 4 New Codeshare partners in Y2017,
expected 25% of Passenger Revenue 24% 24%
18% 20%23%
1Q-16 1Q-17 Y2014 Y2015 Y2016
Unit: %
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Potential Growth Contributed from BA’s Direct Flights to China
*Source: Department of Tourism
13
BA’s direct flights from Samui to China have
potential growth by increasing revenue from China
POS, while Market drops
%Change 1Q-16 1Q-17
Chinese Visitors to Thailand* +31% -7%
BA : Point of Sales in China +12% +36%
% of Total Passenger Revenue 1Q-16 1Q-17
BA Revenue from China Pointof Sales
5% 7%
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Network Plan to Capture Demand & China Market 14
Capture Demand
Increase Frequency
Bangkok-Danang from 4 to 7 Flights Weekly
1Q-17Chiang Mai-Mae Hong Son from 10 to 14 Flights Weekly
Chiang Mai-Mandalay from 4 to 7 Flight Weekly
Bangkok-Chiang Mai from 7 to 9 Flights Daily
Y2017
Bangkok-Vientiane* from 7 to 14 Flights Weekly
Chiang Mai-Samui from 1 to 2 Flights Daily
Chiang Mai-Phuket from 1 to 2 Flights Daily
Phuket-Bangkok from 9 to 10 Flights Daily
China Market
Current Samui-Chengdu 4 Flights Weekly (Jan 2017)
Y2017New Route
Samui-Guangzhou Daily Flight
Samui-CHINA*
Untried & Unfound Destinations in Indochina
New Route Phu Quoc* in Vietnam 3 Flights Weekly
Y2017Bagan* in Myanmar 3 Flights Weekly
*Subjected to Government Approval
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Fleet Status & Plan
Average of 3-4 aircrafts per year
15
6-Owned
7-FL
9-OL
12-OL
6-Owned
9-FL
9-OL
12-OL
6-Owned
9-FL
9-OL
15-OL
ATR 72-600 4 7 9 9
ATR 72-500 8 6 6 6
A320 8 9 9 9
A319 11 12 12 15
2015 2016 Apr-17 2017E
3134
36 39
31 34 36 39
Y2015 Y2016 Apr-17 Y2017
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Declined Advanced Booking from Weaker Demands
Advanced Booking Traveling within 3Q2017 : Segmented by Region
16
Samui-Domestic
43%
Cambodia7%
Myanmar3%
Laos2%
Vietnam3%
Samui53%
Indochina 15%
Others -Domestic 29%
Other - International 3%
Samui-International
10%
-6%YoY
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Boutique Airline
• Lounges for all passengers
• Meals on board
• Unique network covering 25+ tourist destinations
Own & Operate 3 Resort Style Airports
• Samui
• Sukhothai
• Trat
3 Airport Related Services at BKK Airport
• Catering Service
• Ramp & Ground Service
• Cargo Terminal
Strategic Investment
• 7.83% in BDMS
• 33% in SPF
4 Key Components to Support Sustainable Growth 17
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Samui Airport Update :
Approved number of flight : 50 flights per day*
Submitted EIA report to Office of Natural Resources &
Environmental Policy and Planning for 70+ flights approval
Create Strategic Route Network Through Boutiques Airports 18
Other Airlines AVG Flight/Day
2
2
Scheduled Charter 1
*Approved by CAAT in November 2014
AVG Flight/Day Y2015 Y2016 Y2017E
All Airlines 38 40 42
BA only 32 34 37
Samui Passengers (All Airlines)Unit: Thousand
Sukhothai PassengersUnit: Thousand
Trat Passengers
Unit: Thousand
730 718
2,120 2,2342,554
1Q-16 1Q-17 Y2014 Y2015 Y2016
16 22
48 54
74
1Q-16 1Q-17 Y2014 Y2015 Y2016
31 31
73 73
91
1Q-16 1Q-17 Y2014 Y2015 Y2016
-2%
+5%+14%
+35%
+11%
+38%
+1%+24%
0%
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New Development 19
New Aircraft Maintenance Facility at Sukhothai Airport
New Airport Development in Domestic & International
New Catering Facility at Chiang Mai Airport
Samui Renovation Project : Expect to start construction in 4Q2017
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Financial Highlight
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Financial Overview 21
Revenue
EBITDAR & Net Profit
Unit: MB & EBITDAR Margin (%)
Major Expenses (% of COGS)
Unit: %Unit: MB
6,139 5,923
17,513 19,104 20,431879 983
2,6843,148 3,415
697 527
1,611 2,0472,298
1Q-16 1Q-17 Y2014 Y2015 Y2016
Passenger Sales & Services Others
7,776 7,469
22,12424,903 26,766
-4%
+13%+7%
16% 20% 30% 24%16%
17% 13%11% 12%
16%
9% 11%10% 9%
9%
17% 17%15% 17%
17%
15% 14% 13%15%
17%
24% 25% 22% 13%25%
1Q-16 1Q-17 Y2014 Y2015 Y2016
Fuel AC Maintenance AC Lease
Passenger Service Salary & Wages Others
2,8511,991
4,0385,293
6,570
1,575 565 386 1,849 1,837
37.2%
26.9%
18.6%22.0%
25.3%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
1Q-16 1Q-17 Y2014 Y2015 Y2016
506
Additional Corporate Income Tax (one off)
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RASK vs CASK & Unit Margin 22
CASK Fuel Cost per ASK
RASK (THB per ASK)
CASK(THB per ASK)
Salary & Wage Cost per ASK Maintenance Cost per ASK
4.423.74
3.41 3.60 3.69
3.29 3.36 3.26 3.30 3.36
1Q-16 1Q-17 Y2014 Y2015 Y2016
0.48
0.49
0.54
0.47
0.66
0.42
0.39
0.92
0.35
0.47
0.75
0.38
0.52
0.50
0.48
Cost per ASK (1Q-16 vs 1Q-17)
Fuel : +32%YoY
Maintenance : -22%YoY
Salary & Wages : -2%YoY
1.13
0.380.15
0.30 0.38
Unit MarginRASK-CASK
(THB per ASK)
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Effective Fuel Hedging 23
Jan/17 Feb/17 Mar/17 Apr/17 May/17 Jun/17 Jul/17 Aug/17 Sep/17 Oct/17 Nov/17 Dec/17 Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18
30
35
40
45
50
55
60
65
70
0%
10%
20%
30%
40%
50%
60%
70%
80%
Avg. MOPS BA's fuel price Hedged cost (LHS) Indicative price % Hedged (RHS)
Hedging Policy50-70% of Fuel Consumption
*Indicative price provided by PTT as of 26th April 2017
1Q 2Q 3Q 4Q 1Q 2Q
Hedge Ratio 54% 57% 65% 65% 52% 47%
Average Hedge Cost 57 58 61 63 64 63
Average Hedge Cost
Average Effective Cost 60 60 62 63 64 63
Average Effective Cost
60
61
BA2018
64
63
2017
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Appendix : Dividend PaymentDividend Policy to pay at least 50% of Net Profit (Separate FS)
25
0.25 0.250.20
0.450.50
Y2014 Y2015 Y2016
Interim Annual
Y2014 Y2015 Y2016
Earning per Share (THB) 0.30 0.89 0.84
Dividend per Share (THB) 0.20 0.70 0.75