THAI AIRWAYS INTERNATIONAL PCLthai.listedcompany.com/misc/PRESN/20181121-thai-analystBriefing3q... · The information contained herein is intended to represent the Company’s operating

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THAI AIRWAYS INTERNATIONAL PCL Q3- 2018 analysts briefing

21-Nov-2018

Q3-2018 analysts briefing

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ALLIANCE FOR THAILAND’S SUSTAINABLE GROWTH


The information contained herein is intended to represent the Company’s operating and financial position at a given point in time and may also contain forward looking information which only reflects expectations based on the prevailing geo-political, economic and non-controllable factors. Such information has been obtained from sources believed to be most

reliable and the means in analyzing and preparation of such information for disclosure are based on approved practices and principles in the investment industry. The views are based on assumptions subject to various risks and uncertainties and no assurance is made as to whether such future events will occur, that projections will be achieved, or that the assumptions here-in are correct. Consequently no assurance is made as to the accuracy or completeness of information presented in this document.

This document should not be construed as an investment guide or as an offer or solicitation of an offer to buy or sell equity shares or other securities issued by the Company.

DISCLAIMER

3 Q3-2018 analysts briefing

TRANSFORMATION PLAN

4

5

Strategic & Objectives


6 Q3-2018 analysts briefing

Synergy Strategy

7

FUTURE GROWTH ENGINES

TRENT XWB ENGINE RESEARCH AND

DEVELOPMENT

CARGO VILLAGE, U-TAPAO

TG MRO CAMPUS – U-TAPAO

New Catering Plant in CHAING MAI


8 3Q-2018 analysts briefing

“Power of State-Owned Enterprises, Synergy to Win” chaired by Mr. Somkid Jatusripitak, Deputy Prime Minister

Total 103 active aircrafts (decommissioned 2 B737-400 aircraft)

THAI, Royal Thai Navy, and Eastern Economic Corridor Office Sign MOU Allowing THAI to Operate at U-Tapao International Airport in the Eastern Special Development Zone

Launch the THAI and Rolls-Royce Trent XWB Engine Research and Development Testing Program at, Don Mueang Airport

Other activities Won TTG Travel Hall of Fame Award for 10 consecutive years

Won 1st Running up for two KAYAK Travel Awards Singapore 2018 :

• Favourite In-Flight Food & Beverage

• Favourite Airline Loyalty Program Accommodated British Cave Rescue Council and Beijing

Peaceland teams for Tham Luang cave rescue mission Received Exemplary Transport Award 2018

Q3-2018 Events

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FINANCIAL PERFORMANCE

9

10

Q3-18 Operations summary

Unit : THB’ Billion/ Consolidated

Q3’18 Q3’17 %change

Revenues 48.0 46.9 +2.2

Costs -50.8 -45.5 +11.6

Interest payments -1.1 -1.1 -

Operating Profit -3.9 +0.3 -

(1-time) Expense - -0.1 -100.0

Impairment loss (1-time) -0.4 -1.5 -75.3

FX Gain/(Loss) +0.3 -0.8 +136.1

Profit before Tax -4.0 -2.1 -88.2

Tax +0.3 +0.3 -

Net profit -3.7 -1.8 -103.2

Passenger Production (MASK) 23,391 22,931 +2.0

Passenger Traffic (MRPK) 18,121 17,936 +1.0

Cabin Factor (%) 77.5 78.2 -0.7

Passenger carried (Million) 6.01 5.99 +0.3

Passenger Yield Inc. Surcharge (THB/km) 2.09 2.10 -0.5

Aircraft Utilization (Hrs./Day) 12.1 12.1 -

Pax & Cargo increase

Fuel increase

More Passenger


11

9M-18 Operations summary

Unit : THB’ Billion/ Consolidated

9M’18 9M’17 %change

Revenues 148.7 141.9 +4.8

Costs -148.3 -137.4 +7.9

Interest payments -3.3 -3.5 -5.3

Operating Profit -2.9 +1.0 -383.6

(1-time) Expense - -1.0 -100.0

Impairment loss (1-time) -3.1 -2.9 +6.5

FX Gain/(Loss) +0.5 -1.7 +126.6

Profit before Tax -5.5 -4.6 -21.6

Tax +1.5 +0.7 +112.7

Net profit -4.0 -3.9 +2.6

Passenger Production (MASK) 69,729 67,025 +4.0

Passenger Traffic (MRPK) 54,372 53,504 +1.6

Cabin Factor (%) 78.0 79.8 -1.8

Passenger carried (Million) 18.16 18.38 -1.2

Passenger Yield Inc. Surcharge (THB/km) 2.17 2.14 +1.4

Aircraft Utilization (Hrs./Day) 11.8 12.0 -1.7 Q3-2018 analysts briefing

Pax & Cargo increase

Fuel increase

Better Yield

12

300 + 304 + 561 + 160

-3,499

-1,760 -3,934

-6,000

-5,000

-4,000

-3,000

-2,000

-1,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q3'17 Pax Rev Cargo Rev

BU & Other

Rev Fuel Cost

Non Fuel

Cost &

Interest Q3'18MTHB

Consolidated

Q3-18 Operating profit movement


13

1,025

-4,116

+ 3,200

+ 1,706

+ 1,839

- 6,561

-2,907

-6,000

-5,000

-4,000

-3,000

-2,000

-1,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

9M'17 Pax Rev Cargo Rev

BU & Other

Rev Fuel Cost

Non Fuel

Cost &

Interest 9M'18MTHB

Consolidated

9M -18 Operating profit movement


14

Cabin factor

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

50.0

60.0

70.0

80.0

90.0

%

2017 = 79.8

9M’2018 = 78.5 2015 = 73.3

2016 = 73.8

TG Only


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Passenger yield

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1.8

2.0

2.2

2.4

2.6

2.8

3.0

THB / RPK

2017 = 2.15

9M’2018 = 2.16

2015 =2.46

2016 = 2.33

TG Only


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Q3-18 Passenger Yield Analysis

Passenger Yield by Region

Consolidated

(THB/RPK) Q3’18

Q3’17 (Q3’18 Rate)

% Change

Pax Rev 2.09 2.04 +2.5

FX impact - 0.06 -100.0

Total Pax Yield 2.09 2.10 -0.5

(THB/RPK) Q3’18 Q3’17

% Change

Domestic 2.43 2.70 -10.0

Regional 2.48 2.47 +0.4

Intercontinental 1.70 1.70 -

Total system 2.09 2.10 -0.5


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9M-18 Passenger Yield Analysis

Passenger Yield by Region

Consolidated

(THB/RPK) 9M’18 9M’17 (9M’18 Rate)

% Change

Pax Rev 2.17 2.08 +4.3

FX impact - 0.06 -100.0

Total Pax Yield 2.17 2.14 +1.4

(THB/RPK) 9M’18 9M’17

% Change

Domestic 2.58 2.77 -6.9

Regional 2.55 2.52 +1.2

Intercontinental 1.74 1.71 +1.8

Total system 2.17 2.14 +1.4


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JAN - SEP

2018 2017

Liquidity Ratio

- Current Ratio (times) 0.98 0.85

- Current Ratio (Included Committed Credit Line )

(times)

1.26 1.09

Profitability Ratio

- Operating Profit margin % (1.95) 0.72

- Net profit Margin % (2.71) (2.71)

- Return to Equity % (13.36) (12.13)

Efficiency Ratio

- Return to Total Assets % (0.77) (0.34)

Financial Policy Ratio

- Interest Bearing Debt to Equity (times) 5.39 5.58

- Total Debt to Equity (times) 8.78 8.62

- IBD/EBITDA (times) 12.30 9.89

- Interest Coverage Ratio (times) 3.64 4.70

- EBITDA (MTHB) 12,437 16,897

Consolidated

9M-2018 Financial Ratios


TG Brent Price

Actual Brent Price

Est. Brent Price

Est. TG Brent Price

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2018-2019 Fuel Hedging Percentage Brent Actual / Future Price vs. TG Price

5-NOV-18

Q318

(56/67) P C

(55/60/65)

1H18

(49/60) P C

(55/60/65)

Q418

(70/80) P C

(62/68/73)

CAL19 P C

(68/76/83)

(70/80)


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Currency break down

THB

39%

(37%)

USD

6%

EUR

10%

JPY

8% CNY

4%

(5%)

AUD

5%

(6%)

OTHER

27%

(28%)

Revenue

Foreign Currency Exposure

(Jan - Sep 2018)

THB

29%

(33%)

USD

57%

(51%)

EUR

3%

(4%)

JPY

3%

CNY

1%

AUD

2%

OTHER

5%

(6%)

Expense

Liability

30 Sep 18 : 152 B

30 Sep 17 : 168 B


USD

5%

(2%)

EUR

33%

(36%)

JPY

20%

THB

35%

(33%)

CHF

6%

(7%)

GBP

1%

(0%)

ST loan

0%

(3%)

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61,963 53,752 48,659 54,111 48,273 52,942

13,529

0 7,168

7,444 7,118

79,234

63,734 57,301

55,952 52,306

50,580

24,072

30,354 32,126

33,146

34,252 30,724

14,625

7,400

7,270 4,000

0

0

0 0 0

994 970

0

12,324 10,615 10,119

10,030 9,728

0

50,000

100,000

150,000

200,000

250,000

Dec-15 Dec-16 Dec-17 Mar-18 Jun-18 Sep-18

MTHB

CHF

GBP

ST loan

JPY

EUR

USD

THB

Liabilities by currency

THB 193B

THB 167B

THB 152B THB 162B

Currencies of choice for natural hedging

THB 160B


THB 157B

OUTLOOK FOR 2018

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Q42018 - 2019 Outlook

AEROPOLIS AND MRO AT U-TAPAO

SUPPORT SECONDARY CITIES AND TRAVEL ON “THAI TIEW THAI” PACKAGE

FREE VISA ON ARRIVAL POLICY FOR 21 COUNTRIES

THE AIRCRAFT ACQUISITION PLAN UNDER RECOMMENDATION OF OFFICE OF THE NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT BOARD (NESDB) FOR APPROVAL FROM BOARD OF DIRECTORS

FAA’S VISIT FOR PRE-AUDIT OF THAILAND’S AVIATION SAFETY IN JAN’19

EXPECTED HIGH FUEL PRICES

THE TRADE WAR WILL HIT U.S. AND CHINESE GROWTH


appendix THANK YOU Q&A

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THAI AIRWAYS INTERNATIONAL PCLthai.listedcompany.com/misc/PRESN/20181121-thai-analystBriefing3q... · The information contained herein is intended to represent the Company’s operating