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ON T IME LY F N N E A T C W E O N R O K Y R E V E W O N S D E R I G V I T I C A E L A E I F R F L I IC N I E E N C Y S A F E T Y & H E A L T H ANNUAL REPORT รายงานประจำป 2019 2562 บริษัท เอเชีย เอวิเอชั่น จำกัด (มหาชน) WHAT’S INSIDE Message14 from Message16 from Message18 from the Chairman of the Board the Executive Chairman the Chief Executive Officer Board20 of Directors Public26 Relations Activities 2019 Investor28 Relations Activities 2019 and Management Team Company30 Policy Key32 Milestones Nature34 of Business and Business Overview OVERVIEW Risk49 Factors MANAGEMENT Securities53 and Shareholders Management56 Structure Director81 and Management Profiles CORPORATE GOVERNANCE Corporate100 Governance Sustainability119 Report Internal158 Control and Related160 Parties Audit179 Committee Risk Management Transactions Report FINANCIAL INFORMATION 180Report of Directors Relating to Management181 Discussions Financial187 Statements Responsibility for Financial Statements and Analysis GRI241 Content Index ROUTE NETWORK Beijing NOW (GRI 102-4, 102-6) EVERYONE Covers Xi'an Chengdu China Nanjing CAN FLY 94 65 Chongqing Wuhan Routes Cities Hangzhou Nanchang Ningbo Changsha Jaipur Kunming Gaya Taipei Myanmar Nanning Guangzhou Shantou Kolkata Mandalay Shenzhen Taiwan Chiang Rai Hanoi Macao Hong Kong Ahmedabad Luang Prabang Chiang Mai Laos Pacific Yangon Vientiane Ocean Thailand Da Nang India Vietnam Bengaluru Bangkok Siem Reap Chennai Cambodia Nha Trang Phnom Penh U-Tapao Ho Chi Minh City Kochi Krabi Can Tho Phuket Sihanoukville Hat Yai Penang Male Malaysia Kuala Lumpur Maldives Indian Ocean Johor Baharu Singapore AirAsia Thailand Domestic Route & Transfer Service Indonesia Chiang Rai Pai Nan Bali Chiang Mai Chiang Khan Loei Udon Thani Sukhothai Nakhon Phanom Phitsanulok Sakon Nakhon Khon Kaen Mukdahan Kalasin Mahasarakham Thai AirAsia Hub in Thailand Thailand Roi Et Ubon Ratchathani Don Mueang International Airport International Route Buri Ram Surin Bangkok Phuket International Airport Domestic Route Chiang Mai International Airport City Transfer U-Tapao Krabi International Airport Island Transfer Tao Island Chumphon Phangan U-Tapao International Airport Ranong Samui Surat Thani Nakhon Si Thammarat Phuket Khanom Patong Krabi Trang Phi Phi Hat Yai Yao Noi Lanta Narathiwat Ngai Lipe 4 KEY FINANCIAL AND OPERATING DATA No. Passenger Carried 22.1 Aircraft Million 63 Airline of Thailand Allstars KEY FINANCIAL Load Factor AND OPERATING 5,974Persons DATA 85% (GRI 102-6, 102-7, 102-8) Average Stage Length On-time Performance KM 1,033Per Flight 2019 COST BREAKDOWN 86% % % 10 Others 34 Fuel % Aircraft Utilisation 6 SG & A Ancillary Revenues % Repair & 12.3Flight Hours Per Day 9 Maintenance 7,511Million Baht % Ramp & Airport 12 Operations % Staff % 16 Aircraft and 13 Engine Rental 5 FINANCIAL HIGHLIGHTS Total Revenues Loss for the year Total Assets Total Liabilities Total Equity 41,553 474 62,903 35,214 27,689 Million Baht Million Baht Million Baht Million Baht Million Baht FINANCIAL HIGHLIGHTS (Unit: Million Baht) (1) For the year ended 31 December 2017 2018 2019 Statement of Comprehensive Income Revenues from sales and services 36,003 38,905 40,181 Profit (loss) for the year 2,685 127 (866) Profit (loss) attributable to owners of the company 1,477 70 (474) Statement of Financial Position Total assets 62,774 61,747 62,903 Total liabilities 31,321 33,124 35,214 Equity attributable to owners of the company 22,006 20,455 19,944 Total equity 31,453 28,623 27,689 Statement of Cash Flows Net cash flows from (used in) operating activities 5,105 2,869 966 Net cash flows from (used in) investing activities (2,819) (1,733) (1,794) Net cash flows from (used in) financing activities (1,563) (2,288) 829 Net increase (decrease) in cash and cash equivalents 723 (1,152) 1 Key Financial Ratios Net profit (loss) margin (%)(2) 4.1 0.2 (1.2) Return on assets (%)(3) 2.5 0.1 (0.8) Return on equity (%)(4) 6.8 0.3 (2.3) Basic earnings (loss) per share (Baht) 0.3046 0.0144 (0.0977) Remark (1) Reclassifications of the comprehensive income statements (2) Net profit margin = Profit attributable to owners of the company / Revenues from sales and services (3) Return on assets = Profit attributable to owners of the company / Total assets (Average) (4) Return on equity = Profit attributable to owners of the company / Equity attributable to owners of the company (Average) STOCK INFORMATION Baht Asia Aviation Public Company Limited 5 4 2.24As of December 30, 2019 3 2.08-4.7652 weeks’ range 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6 7 2019 Highlighted Accolades 2019 HIGHLIGHTED ACCOLADES 2019 HIGHLIGHTED ACCOLADES (GRI 102-12, 102-13) Thailand Sustainable Investment Marketeer No.1 Marketing Association (THSI) 2019 IR Magazine Awards 2019 Brand Thailand 2018-2019 Skytrax of Thailand (MAT) Awards AAV listed on THSI 2019 Best IR Website of South East Asia No.1 Brand Thailand Award, World's Best Low-Cost Airline Journey D campaign awarded Airline Category for the 11th year in a row (2009-2019) Silver in CSR category World Travel Awards Thailand Corporate OAG On-Time-Performance (WTA) 2019 HR Asia Awards Excellence Awards 2019 Adman Awards 2019 2019 Zocial Awards World's Leading Low-Cost Airline for the 7th Best Company to Work for in Asia 2019, Innovation Excellence Award Thai AirAsia's advertising Top 10 Airlines by OTP Best Brand Performance on Social Media, consecutive year (2013-2019) Aviation (Thailand edition) campaigns won 3 Golds, Airline category 3 Silvers, 9 bronzes and listed as a finalist in 3 categories. Airbus A321neo l Asia Aviation Public Company Limited In addition to reduction of carbon dioxide, these practices contribute to saving fuel costs. Every little thing matters, Caring for safety, Investing on Social Welfare... Effective Management because you matter reaching destinations on-time towards Sustainable Growth for All and Innovation for the Future Thai AirAsia is Thailand's only airline to be placed among Thai AirAsia is acquiring new Airbus A321neo the World's Top 10 for on-time service and the third among for its fleet as they are 23 percent more fuel low-cost carriers according to OAG 2019 eff icient compared to A320s. neo 14 15 Message from the Chaiman of the Board Message from the Chaiman of the Board MESSAGE FROM THE CHAIRMAN OF THE BOARD (GRI 102-14) In relation to our company, the sentiment is for caring for our own employees and stakeholders “May your life be long and happy” us to continue to grow and be resilient and and operating our business with responsibility, is a common sentiment centred everlasting, always able to overcome any morality, care for the environment and society around the ideas of health and ailments or impacting factors. While sometimes and with consideration towards how our business we may decide to tread slowly, our basis of health affects others. In passing on sustainability, we longevity, but in my perspective, and discipline means we can regain momentum must first create it internally and externally. this salutation’s true meaning is when the time is right. Sustainability is a goal that “sustainability”. requires the effort of many, with no one more or “Longevity results from a perseverant spirit”. Our less important, that is to say, the company must directors, executives and staff know that we are care about its returns, society and the enviroment currently flying through a sky made turbulent by in equal measure. We cannot work exclusively factors beyond our control, but while the journey for society just as regulatory bodies must at may be shaky and uneven, as long as we believe times provide us support. By strengthening in our captain and crew and manage those ourselves in every dimension, both in terms of factors that we can, maintaining our spirit, we will our company and for society, we safeguard pass through these winds together. Mr. Vichate Tantiwanich ourselves for every situation. Chairman of the Board I thank our executives, employees, investors and At the heart of sustainability is being ‘Capable all of our stakeholders for the past year and bid and Good’, ‘Capable’ is working together you remain confident in our potential and efficiently, constantly developing and producing readiness to regain growth momentum when the excellence work while being ‘Good’ starts with opportunity arises. 16 17 Message from the Executive Chairman Message from the Executive Chairman MESSAGE FROM THE EXECUTIVE CHAIRMAN (GRI 102-14) The year 2019 brought unique challenges to the Airport began commercial service, and joined other It is now apparent that our tourism industry as a whole with factors ranging from airlines in calling for a reduction in the fuel excise growth in this day and age heightened world fuel prices to tourism sentiment tax for domestic flights in order to cut capital costs. not recovering as expected, price competition and cannot be unilateral and the appreciating Baht. Fortunately, due to our strong It is now apparent that our growth in this day and we must know how to foundations and capital management, we were able age cannot be unilateral and we must know how to “cooperate for growth to continue seeking out new opportunities, platforms “cooperate for growth and competitiveness”. I have and partners. In being open to new approaches, we presented this approach as a strategy for all of our and competitiveness” were able to ensure our stability. departments. Over the past year, our company drove forward state While 2019 may have been lackluster in terms of policies through cooperation with government operational returns, I saw it as a year of learning Mr.