Bangkok-Chiang
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Bangkok Airways 3Q-2017 2 Disclaimer 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. 3 Market Overview : International Visitor Arrival to Thailand International Visitor Arrival to Thailand International Visitor Arrival Comparison (All Modes of Transportation) Unit: Million +9% %Change +9% 35.4 9M16 vs 9M17 32.6 +5% Region 29.9 +12% Bangkok IVA* to Thailand 24.8 26.1 Airways 22.1 APAC + Australasia +5% +6% China +1% +57% Europe + ME +6% +13% *Remarks : IVA = International Visitor Arrival Source : Department of Tourism Y2015 Y2016 9M15 9M16 9M17 Y2017E Source : Department of Tourism Y2013-Jan-Sep2017 Fiscal Policy Office, Y2016-Y2017 4 Operating Statistics 3Q & 9M 2017 Passenger (Thousand) RASK (THB/ASK) Consol. Revenue (MB) 1,527 4,445 3.35 3.34 6,871 20,252 (+7%) (+5%) (-10%) (-13%) (+3%) (-1%) 2Q3Q--1616 : 1,4281,239 6M9M--1616 :: 4,2472,819 2Q3Q--1616 :: 3.743.33 6M9M--1616 :: 3.843.89 2Q3Q--1616 : 6,6986,055 6M9M--1616 : 20,52813,830 RPK (Mil. Seat-Km.) CASK (THB/ASK) EBITDAR (MB) 1,196 3,453 3.51 3.40 1,057 3,459 (+12%) (+9%) (+6%) (+4%) (-39%) (-40%) 3Q-16 : 1,070 9M-16 : 3,169 3Q-16 : 3.30 9M-16 : 3.26 3Q-16 : 1,745 9M-16 : 5,758 ASK (Mil. Seat-Km.) Unit Margin (THB/ASK) Net Profit (MB) 1,723 5,088 (0.16) (0.06) (142) (98) (+13%) (+12%) (-136%) (-110%) (-121%) (-105%) 3Q-16 : 1,522 9M-16 : 4,540 3Q-16 : 0.45 9M-16 : 0.58 3Q-16 : 681 9M-16 : 2,144 5 1 3 Airport Related Services at BKK Airport 6 BAC : Starts to Operate Catering in Phuket 2600 35.0% 2400 30.0% 29.5% 29.6% 2200 28.8% 30.0% 2000 26.6% 26.1% 1800 1600 1,456 1,456 25.0% 1400 1,186 1200 1,070 1000 20.0% 800 600 392 432 419 360 316 310 285 15.0% 400 202 200 260 276 250 200 108 69 104 67 0 10.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) BAC Key Highlight : 9M-2017 25% . Developments : . BA holds 90% in BAC 1. BAC Phuket – Starts operation in July 2017 Others 75% . No. of airline customer = 24 (+5YoY) (Capacity : 2,140 Meals/Day) . Meal Uplift : 7.9 Million (+3%YoY) Market Share 2. Gourmet Primo – Starts operation in October 2017 . AVG Meal per day : 28,750 Meals (+3%YoY) 3. BAC Chiang Mai – Expected to operate in Y2019 BAC-BKK Major Customers : BAC-Phuket Customers : Gourmet Primo Customers : Lounge Bakery 7 Update : New Catering Facilities Bangkok Air Catering at Phuket Gourmet Primo “Specialist Manufacturer of the Highest Quality Semi-Finished Food Products” 8 BFS Ground : Steady Growth with Strong Performance 2,600 2,383 25.0% 2,400 2,130 2,200 18.4% 20.0% 2,000 17.6% 1,854 17.3% 1,732 1,800 15.6% 15.7% 14.3% 1,600 15.0% 1,400 1,200 10.0% 1,000 800 565 614 600 340 405 5.0% 400 303 305 255 117 166 199117 146 201 200 88 43 96 51 101 0 0.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 9M-2017 Major Customers : . BA holds 98.88% in BFS Ground . No. of customer = 74 (+4YoY) . The first & only ISAGO certified operator in BKK airport . No. of flights serviced : 50,990 Flights (+10%YoY) . Revenue +7%YoY . Net Profit +20%YoY Other BFS New Customers : 44% Ground 56% Market Share 9 BFS Cargo : Strong Profit from New Services & Pricing Adjustment 2,600 48.0% 50.0% 2,400 47.3% 46.1% 48.0% 2,200 44.3% 46.0% 2,000 44.0% 42.9% 1,702 1,800 1,568 44.0% 1,600 1,397 42.0% 1,400 1,229 40.0% 1,200 1,000 773 38.0% 800 661 672 540 527 36.0% 600 480 461 444 465 418 359 405 34.0% 400 185 230 225 225 123 162 32.0% 200 0 30.0% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%) Key Highlight : 9M-2017 Major Customers : . BA holds 49% in BFS Cargo . No. of customer = 67 (+3YoY) . The first & only ISAGO certified operator in BKK airport . Revenue +14%YoY . Net Profit +29%YoY BFS Other Cargo New Customers : 51% 49% Market Share 10 2 Boutique Airlines 11 Fare Pressure due to high competition affected Revenue Passenger Revenue Unit: MB & %Proportion +6% 20,761 -2% 19,517 20,7617% 15,819 15,581 19,5176% 24% +0.5% 15,8926% 15,5817% 26% 24% 24% 22% 22% 5,158 5,182 21% 18% 6% 6% 22% 23% 46% 47% 18%5,232 16%5,182 49% 51% 54% 55% 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Samui Indochina Domestic (excl. Samui) International (Others) Key Highlight : All Routes (9M-2017) . Passenger Revenue : -2%YoY . Average Fare : -6%YoY due to high competition (Especially Indochina) . Passenger : +5YoY 12 International Point of Sale (POS) represent 67% of Passenger Revenue Thailand Only Top 3 Europe POS (9M-17) Europe + Middle East 3Q-17 : 19% (-5%YoY) . UK (Includes Russia) . Germany 3Q-17 : 30% (+6%YoY) 9M-17 : 19% (-8%YoY) . France 9M-17 : 28% (+6%YoY) Top 3 Asia POS (9M-17) . China . Cambodia . Hong Kong www.bangkokair.com APAC + Australasia 3Q-17 : 18% (-7%YoY) (exclude Thailand) 3Q-17 : 28% (-4%YoY) 9M-17 : 19% (-8%YoY) 9M-17 : 29% (0%YoY) >70% Booking from Abroad 13 Reach more Passengers through Codeshare Partners % of Passenger Revenue (Codeshare & Interline) New Codeshare Partners in Y2017 Unit: % 23% 23% 23% 21% 22% 20% Non Alliance 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Newest Codeshare Partners . Hub: Noi Bai International Airport (Hanoi) & Tan Son Nhat International Airport (Ho Chi Minh) . Fleets: 84 Aircrafts . Destination Network: 52 Destinations in 17 Countries . Alliance Member: Skyteam 70+ Interline Partners Top Interline Partners (Passenger Revenue Contribution) 14 Tapped Chinese FITs through Direct Flights & Interline Partners . BA’s direct flights from Samui to China : . Samui-Chengdu started in July 2016 . Samui-Guangzhou started in January 2017 . Samui-Chongqing started in July 2017 Interline Partners from China . Potential growth by increasing both passenger & revenue from China POS, while Market slightly increased %Change 3Q16 vs 17 9M16 vs 17 Chinese Visitors to Thailand* +11% +1% Bangkok Airways +25% +56% Passenger Revenue 3Q16 3Q17 9M16 9M17 from Point of Sales in China 6% 8% 5% 8% *Source: Department of Tourism 15 Network Plan to Capture Demand & China Market Capture Demand Bangkok-Danang 4 7 Flights Weekly Chiang Mai-Mae Hong Son 10 14 Flights Weekly 1Q-17 Increase Chiang Mai-Mandalay 4 7 Flight Weekly Frequency Bangkok-Chiang Mai 7 8 Flights Daily Y2017 Chiang Mai-Samui 1 2 Flights Daily China Market Samui-Chengdu 4 Flights Weekly 3Q-16 Current Samui-Guangzhou Daily Flight 1Q-17 Samui-Chongqing 3 Flights Weekly July 17 First Move to Untried & Unfound Destinations New Route Phu Quoc in Vietnam 4 Flights Weekly (Oct 2017) Y2017 16 Fleet Status & Plan 38 34 31 ATR 72-600 4 7 7-FL 9 9-FL 9 ATR 72-500 8 6 6-Owned 6 6-Owned 6 A320 8 9 9-OL 9 9-OL 9 A319 11 12 12-OL 14 14-OL 1514 FL = Financial Lease 2015 2016 EndAug-17 of 2017 2017EOL = Operating Lease Airbus A319 Airbus A320 ATR72-600 ATR72-500 17 Advanced Booking +13%YoY Advanced Booking Traveling within 1Q2018 : Segmented by Region Other - International 2% Myanmar Others - Domestic Samui- 27% 41% Domestic 81% Vietnam 13% Samui 38% Cambodia Indochina Samui- 48% Laos 18% Int’l 12% 19% 18 3 Own & Operate 3 Resort-Style Airports 19 Create Strategic Route Network Through Boutiques Airports Samui Airport Update : Samui Passengers (All Airlines) . Approved to operate 50 flights per day* Unit: Thousand +14% . Submitted EIA report to Office of Natural Resources & +2% 2,554 2,234 Environmental Policy and Planning for 70+ flights approval 2,008 2,049 +2% *Approved by CAAT in November 2014 716 732 AVG Y2015 Y2016 Y2017E 1H2018E Flight/Day 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 All Airlines 38 40 41 42 Sukhothai Passengers Unit: Thousand BA only 32 34 36 37 +38% +17% 74 Other Airlines AVG Flight/Day 60 +5% 52 54 2 20 21 2 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 Scheduled Charter 1 Trat Passengers Unit: Thousand +24% -0.5% 91 73 64 64 +2% 15 16 3Q-16 3Q-17 9M-16 9M-17 Y2015 Y2016 20 New Development – Subject to Regulatory Approval . New Aircraft Maintenance Facility at Sukhothai Airport . New Airport Development in Domestic & International . New Catering Facility at Chiang Mai Airport (Expected Y2018) .