2Q2019 RESULTS BRIEFING 13 August 2019 DISCLAIMER

The 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 the affairs of the Company since such date. The third party information and statistical data in this presentation have been obtained from sources the Company believes to be reliable but in no way are warranted by the Company as to accuracy or completeness. This presentation may not contain all material information concerning the Company and the information set forth in this material is subject to change without notice. These materials included herein that are not historical facts are forward-looking statements. Such forward looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, AAV’s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of airline travel, seasonality issues, volatile jet fuel prices, world terrorism, perceived safe destination for travel, Government regulation changes and approval, including but not limited to the expected landing rights into new destinations. This presentation is strictly not to be distributed without the explicit consent of Company’s management under any circumstances.

1 Others MARKET US 4% 4% E.Asia 68% S.Asia 6% EXPECTED OVER 40 MILLION VISITORS IN 2019 OR 5% YOY 1H19 International Tourists Achieved 19.8 million or Up 1% YoY EU 18% 20 1 million LCC penetration

36% 36%

OVERALL Europe 2H19 visitors expected to grow 7% to 20 mil 31% 30% 55% 52% 52% 51% 49% CHINA 48% Edged down 5% YoY and 29% contribution North America

ASEAN South Asia Thailand SE Asia Grew 5% YoY and 26% contribution EUROPE Edged down 2% YoY and 18% contribution SOUTH ASIA 2018 2019 Grew 20% YoY and 6% contribution 1 source: CAPA 2 KEY HIGHLIGHTS 2Q2019

► AirAsia bagged "World's Best Low Cost Airline" for the 11th Consecutive Year. ► Passengers grew 5% on the back of an 8% capacity growth. ► ASK rose 12% as launching 7 new routes. 40% 2.3 mil (+16%) ► Average fare was at Baht 1,390 per pax down 1%, resulting from the 5.6mil sluggish growth of tourism and Baht appreciation. 60% 3.3 mil (-1%) (+5%) ► Ancillary revenues were Baht 1,876 million up 15% or Baht 336 per pax up 9% YoY, due to dynamic pricing and value pack enhanced seat selection and inflight revenues. ► CASK was 1.57 Baht down 2% YoY. Fuel per ASK was 0.55 Baht Load Factor On-Time Utilisation down 6%, while CASK ex-fuel was 1.02 Baht unchanged YoY. ► Core Revenues were Baht 9,609 million, up 6% YoY with 10% EBITDAR Margin. ► TAA & AAV reported net loss of Baht 879 million and Baht 482 million down 55%, YoY respectively. ► Net gearing was at 2.37x with a cash balance at Baht 2.8 billion. 83% 86% 12.5hrs

3 PERFORMANCE HIGHLIGHTS 1H2019

TOTAL REVENUES EBITDAR TAA NET PROFIT AAV NET PROFIT 21,638 3,880 24 15 million Baht million Baht million Baht million Baht 4% YoY -20% YoY -98% YoY -98% YoY

• Total revenues increased 4% due to an increase in ancillary revenues and number passengers, despite lower average fares mainly from the china market. • Operating profits dropped YoY mainly from staff costs and fuel costs along with a rise in fuel consumption.

ASK RASK CASK CASK EX-FUEL 13,777 1.51 1.55 1.01 million Baht Baht Baht +11% YoY -8% YoY -1% YoY +1% YoY

• ASK up by 11% YoY due to the international route expansion, despite an 8% decrease in RASK. • CASK almost unchanged from the same period last year as a result of the high utilisation, while CASK ex-fuel increased partly the recognition of the additional long-term employee benefit liabilities of Baht 111 million. 4 DIGITAL TO ENHANCE ANCILLARY 2Q19 ACHIEVED 1,876 MB (+15%YOY) OR BT 336 PER PAX (+9%YOY)

OTHERS (Cargo, Tune, Fees) • Fee structure adjustment; processing fee • Fly-Thru lounge access

6% FLY-THRU • 2Q19 up by 76% from an increase in AirAsia Group flights, reflected a 79% growth in traffics 9% • Fly-Thru pax was at 7% of total pax

SEAT SELECTION 8% 19% • 2Q19 up by 30% YoY • Emphasis on dynamic pricing and Value Pack, Revenues Government and Premium Flex with travel protection 48% IN-FLIGHT SERVICES • Continue promoting pre-book In-flight combo set • Enhance house-brand on F&B • Launch “Magic Journeys” merchandise.

CHECKED BAGGAGE • 2Q19 up by 4% YoY, relating to international passenger growth

5 COST BREAKDOWN

Fuel costs in 2Q19 grew 6% along with a 14% rise in the 35% Fuel Costs fuel consumption, despite a 4% decrease in fuel price. TAA has hedged 65% of Brent at an effective cost of Jet at $76/bbl and $74/bbl for 2019 and 2020. Staff Costs Sensitivity: +/- 1 Baht against USD equal +/- 5 USD per 15% barrel Jet

Hedge Position Aircraft and Aircraft 2019 AirAsia Group 2020 13% Engine Rental 1Q 2Q 3Q 4Q 1H19 Current Hedge Ratio 53% 52% 70% 85% 73% Avg Brent Hedge Ramp and Airport 67 64 62 61 60 (USD – jet kero) 12% Operation Hedge Cost Repair and Maintenance 81 78 77 76 75 9% (USD – jet kero) Selling and Administrative Effective Cost 6% 78 77 76 75 74 (USD – jet kero) 10% Other costs Note: Information as of Aug 12, 2019 * Excluding D Factor and Excise Tax 6 Regional DOMESTIC MARKET IN 4M20191 Capacity2

% 65 Thai Regional VietJet, Market 6.0%

Thai AirAsia, 32.7% , 7.0% MARKET SHARE1 BY Unique routes 3 13 , PAX FLOWN 9.4% 23 Destinations , , 15.7% 10 18.4% City transfer routes 11 Note: 1 4M2019 (Source: AAV, AOT and Department of Airport) Island transfer routes 2 Capacity share as of FY2019 (source : OAG) 3 As of April 30 2019 7 MORE RATIONAL COMPETITION IN DOMESTIC MARKET DECELERATED GROWTH SPUR AVG. FARE

THAILAND DOMESTIC CAPACITY AirAsia Capacity

Unit : million 48.38 49.55 47.49 2019 32%

27.24

2018 31% 2013 2014 2015 2016 2017 2018 2019 (source : OAG)

8 ROUTE NETWORK PROACTIVE STRATEGY OF EXPANDING TO INDIA AND AROUND INDOCHINA

ADD FREQUENCIES: NEW ROUTE:

2Q19 DMK – Roi Et CNX – Danang

DMK – Khon Kean DMK – Nha Trang

DMK – Shenzhen DMK – Can Tho

CEI – Shenzhen

CNX – Shenzhen

DMK – Ahmedabad

HKT – Phnom Penh

3Q19 DMK – Sihanoukville

4Q19 DMK – Jaipur

9 FLEET PLAN

• New A321 NEOs aircraft are fuel efficient & have lower cost per seat (>50 seats)

• A321 NEOs aircraft deliveries from 2020 onwards to break the airport’s bottleneck

CUMULATIVE FLEET A321 NEOs A320 FLEET PROFILE Unit: Aircraft

2 5

AVG age : 6.3 Yrs 62 61 57 Operating leases 41 Finance leases 15 Owned 6 2018 2019F 2020F Note: 1 Information as of June 30, 2019 Neo: 11 Aircraft, CEO : 51 Aircraft (OP-AAM 17, OP 3rd Party 24) 62 63 62

10 COMPANY GROWTH STRATEGIES

Revenues by routes in 5-year Growth in ancillary to % revenue each year, expected Diversify +1 to see 25% in next 5 yrs SOUTH ASIA, 10% Network ASEAN ex Growth in cargo revenue CLMV, 10% DOMESTIC, +10% each year, cooperate with Teleport 45% Revenue

CLMV, 15% Growth Growth in Fly-Thru passengers +2% each year

CHINA, 20% Cost Reduction

U-Tapao Airport Training Academy MRO center

• Develop U-Tapao Airport to turn • Invest in pilot training academy and • Interested to invest in a MRO center Thailand into Asean's aviation hub flight simulator center in Thailand (10% stake) • Aim to reduce cost >100 MB • Subject to government approval 11 THE CATALYST

AVERAGE FARE 2019-2020 ECONOMIC OUTLOOK Improve airfare with AIRCRAFT UTILISATION Political stability, a solid load factor Fleet and Slot management to GDP Growth at 3.7-3.9% enhance the utilisation rate to 12.5hrs TOURISM STIMULUS Waive VOA fees until 31 October 2019

EXCHANGE & INTEREST RATE • Baht strengthen ahead of other regional currencies CAPACITY • Fed & BOT cut policy rate by 0.25ppt Grow up to 11% YoY FUEL OIL FLEET Take new A321neo from 2019 onwards EIA forecasts Brent prices will avg. $64/b in 2H19 and $65/b in 2020 as production growth outpaces consumption growth.

COST DEDUCTION COMPETITION Increase cost efficiency & productivity More rational competition in domestic market, • Driving fuel usage through data analytic reflected in a 4% deduction in capacity • Predictive maintenance to increase efficiency • A321neo aircraft are fuel efficient & have lower NETWORK cost per seat Rationalise route network • Capacity Management ANCILLARY Improve up to 10% YoY driven from data team centre of excellence

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Don Mueang International Airport, 3rd Fl., Central Office Building, No.3200,, Sanambin, Don Mueang, 10210 TAA : KEY STATISTICS

2Q2019 2Q2018 Change 1H2019 1H2018 Change

Passenger carried (Million seats) 5.58 5.31 +5% 11.44 10.95 +4% International passenger 2.25 1.95 +16% 4.67 4.06 +15% Domestic passenger 3.33 3.36 -1% 6.77 6.89 -2% Capacity (Million seats) 6.75 6.28 +8% 13.26 12.50 +6% Load factor 83% 85% -2 ppt 86% 88% -2 ppt RPK (Million) 5,643 5,194 +9% 11,794 10,812 +9% ASK (Million) 6,903 6,147 +12% 13,777 12,391 +11% No. of stages flown 37,364 34,771 +7% 73,425 69,277 +6% Average stage length (km) 1,023 978 +5% 1,039 991 +5% Fleet size (Aircraft) 62 59 +3 62 59 +3 Aircraft utilisation (Hours/day) 12.5 11.9 +0.6 12.5 12.2 +0.3 On time performance 86% 87% -1ppt 85% 84% +1ppt Average fare (Baht) 1,390 1,402 -1% 1,474 1,537 -4% RASK (Baht) 1.39 1.47 -5% 1.51 1.64 -8% CASK (Baht) 1.57 1.59 -2% 1.55 1.56 -1% CASK ex-fuel (Baht) 1.02 1.02 0% 1.01 1.00 +1%

14 TAA STATEMENT OF COMPREHENSIVE INCOME

Unit: Baht million 2Q2019 2Q2018 Change 1H2019 1H2018 Change

Revenue from sales and services 9,609 9,051 +6% 20,764 20,305 +2% Gain on exchange rate 212 - N.A. 351 28 >+100% Other income 194 252 -23% 522 563 -7% Total revenues 10,015 9,303 +8% 21,637 20,896 +4% Cost of sales and services (9,987) (9,000) +11% (19,606) (17,759) +10% Selling and administrative expenses (818) (794) +3% (1,693) (1,573) +8% Loss on exchange - (49) N.A. - - N.A. Total expenses (10,805) (9,843) +10% (21,299) (19,332) +10% EBIT (790) (540) -46% 338 1,564 -78% Finance costs (180) (177) +1% (371) (348) +7% Profit (loss) before income tax (970) (718) -35% (33) 1,216 >-100% Income tax 91 150 -39% 57 51 +12% Net Profit (loss) (879) (568) -55% 24 1,267 -98%

15 TAA STATEMENT OF FINANCIAL POSITION

Unit: Baht million 2Q2019 FY2018 Change Assets Cash and Cash equivalents 2,843 4,037 -30% Other current assets 2,862 2,238 +28% Aircraft, leasehold improvements and equipment, net 25,450 26,129 -3% Other non-current assets 6,019 5,514 +9% Total assets 37,174 37,918 -2% Liabilities Deferred revenues 4,164 4,987 -17% Borrowings from financial institutions 4,180 3,488 +20% Debenture 4,096 4,095 0% Finance lease liabilities 12,252 13,219 -7% Other liabilities 4,814 4,351 +11% Total liabilities 29,506 30,140 -2% Share capital Ordinary Share Capital 436 436 0% Share Premium 2,629 2,629 0% Retained earnings - legal reserve 43 43 0% Retained earnings - unappropriate 4,560 4,670 -2% Total share capital 7,668 7,778 -1% Total liabilities and share capital 37,174 37,918 -2% 16 TAA : FINANCIAL SUMMARY

2Q2019 2Q2018 Change 1H2019 1H2018 Change

Earnings (loss) per Share (THB) -20.18 -13.03 -55% 0.55 29.09 -98% Return on Total Assets -3.0% 7.0%  -3.0% 7.0%  Return on Shareholders' Equity -12.7% 25.2%  -12.7% 25.2%  EBITDAR Margin 10% 13% -3 ppt 18% 24% -6 ppt EBIT Margin -8% -6% -2 ppt 2% 8% -6 ppt Net Income Margin -9% -6% -3 ppt 0.1% 6% -6 ppt Debt1 : Equity ratio (Times) 2.75 2.00  2.75 2.00  Net Debt2 : Equity ratio (Times) 2.37 1.37  2.37 1.37  Net Liabilities3 : Equity ratio (Times) 3.60 2.18  3.60 2.18 

Note: 1 Debt = Borrowings from financial institutions + Finance lease liabilities + Debenture 2 Net Debt = (Borrowings from financial institutions + Finance lease liabilities + Debenture) - Cash and Cash Equivalents – Short-term Investments 3 Net Liabilities = Total liabilities – Cash and Cash Equivalents – Short-term Investments Percentage Point (PPT)

17 AAV STATEMENT OF COMPREHENSIVE INCOME

Consolidated Consolidated Unit: Baht million Change Change 2Q2019 2Q2018 1H2019 1H2018 Revenue from sales and services 9,609 9,051 +6% 20,764 20,305 +2% Gain on exchange rate 212 - N.A. 351 28 >+100% Other income 194 252 -23% 523 563 -7% Total revenues 10,015 9,303 +8% 21,638 20,896 +4% Cost of sales and services (9,987) (9,000) +11% (19,607) (17,759) +10% Selling and administrative expenses (817) (787) +3% (1,691) (1,572) +8% Loss on exchange - (49) N.A. - - N.A. Total expenses (10,804) (9,835) +10% (21,298) (19,331) +10% EBIT (789) (533) -48% 340 1,565 -78% Finance costs (180) (177) +1% (372) (348) +7% Profit (loss) before income tax (969) (710) -36% (32) 1,217 >-100% Income tax 91 149 -30% 57 51 +11% Profit (loss) attributable to (878) (561) -56% 25 1,268 -98% Equity holders of the company (482) (306) -58% 14 698 -98% Non-controlling interests of the subsidiary (396) (255) -55% 11 570 -98% Earnings (loss) per share (THB) (0.0995) (0.0631) -56% 0.0030 0.1439 -98%

18 AAV STATEMENT OF FINANCIAL POSITION Consolidated Unit: Baht million Change 2Q2019 FY2018 Assets Cash and Cash equivalents 2,930 4,123 -29% Other current assets 2,867 2,243 +28% Aircraft, leasehold improvements and equipment, net 25,506 26,185 -3% Intangible assets 1) 14,879 14,883 0% Goodwill 2) 8,825 8,825 0% Other non-current assets 5,990 5,488 +9% Total assets 60,997 61,747 -1% Liabilities Deferred revenues 4,164 4,987 -17% Accrued expenses 2,558 2,562 +8% Finance lease liabilities 12,252 13,219 -7% Borrowings from financial institutions 4,180 3,488 +20% Debenture 4,096 4,095 0% Other liabilities 5,232 4,773 +5% Total liabilities 32,482 33,124 -2% Share capital Ordinary Share Capital 485 485 0% Share Premium 2,600 2,600 0% Retained Earnings – Legal reserve 48 48 0% Retained Earnings – Unappropriated 17,263 17,322 -0% Non-controlling interests 8,118 8,167 -1% Total share capital 28,515 28,623 -0% Total liabilities and share capital 60,997 61,747 -1% 19 GLOSSARY

Load Factor = Represents the number of passengers carried as a proportion to capacity, which is the number of seats available for passengers. Available Seat Kilometres (ASK) = which is the total number of seats available on all flights multiplied by the number of kilometres these seats were flown Revenue Passenger Kilometres (RPK) = Revenue passenger kilometres, which is the number of paying passengers carried on all flights multiplied by the number of kilometres those seats were flown Average Fare = Calculated as Thai AirAsia' s total passenger revenues and fuel surcharge divided by total number of passengers carried Revenue per ASK (RASK) = Calculated as Thai AirAsia's revenues divided by ASK Cost per ASK (CASK) = Calculated as the sum of Thai AirAsia's operating costs, selling expenses and administrative expenses (but excluding finance costs) divided by ASK Cost per ASK (CASK ex-fuel) = Calculated as the sum of Thai AirAsia's operating costs, selling expenses and administrative expenses (but excluding finance costs) less fuel costs divided by ASK Average Stage Length (kilometres) = Represents the average number of kilometres flown per flight Aircraft Utilisation = Represents the average block hours per day per aircraft during the relevant period. Block hours is calculated by measuring the duration between the time of departure of an aircraft and the time of arrival at its destination. On Time Performance (%) = A flight is deemed "on time" if the actual departure time is no more than 15 minutes of the scheduled departure time.

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