ANALYST MEETING 3Q2015

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1 ANALYST MEETING 3Q2015 November 12, 2015

2 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. 2

3 THAILAND MARKET Continual strong tourists arrivals in the last 11-year (million) E SARS Tsunami Bird flu Coup Source: Thailand s Department of Tourism Growing LCC penetration based on AOT passenger traffics (million) 26.6% % % 38.6% % YTD15 All traffics LCC traffics LCC penetration Source: AOT s (September) Suvarnabhumi airport closure Flood H1N1 outbreak, red mob invasion Political Protest Coup YTD2015: Tourists by nationality; ASEAN & Chinese tourists still driven market January-September 2015 Nationality % Number %Share Number %Share 2015/2014 East Asia 14,854, ,091, ASEAN 5,811, ,590, China 6,115, ,127, Hong Kong 525, , Japan 1,043, , Korea 1,034, , Taiwan 438, , Others 57, , Europe 3,940, ,329, (8.99) Americas 868, , South Asia 1,036, , Oceania 681, , (1.96) Middle East 509, , Africa 113, , (0.73) Grand Total 22,135, ,323, Source: Immigration Bureau, Police Department. (September) Tourist visit rocketed by 28% YoY amid Thai's slowing economy Latest, Thai government stimulate tourism sector, allowing foreigner to obtain Multiple Entry Tourist Visa (METV) that be able to stay in Thailand up to 6 months Continual increasing trend of LCCs, capturing 41% of the market (both domestic & international) 3

4 KEY HIGHLIGHTS A GRIMPSE OF ASIA AVIATION

DMK, HKT, CNX, KBV, and UTP 44 Airbus A320 with utilization 11.2 hrs.

58 million, rose by 26% from prior year, matching 27% capacity growth YoY Average fare increased by 7% YoY up to 1,710 Baht,

5 3Q2015 HIGHLIGHTS No. 1 Low Fare Airline of Thailand 1 Asia s Leading Cabin Crew destinations across 10 countries in Asia Hub Cities : DMK, HKT, CNX, KBV, and UTP 44 Airbus A320 with utilization 11.2 hrs./day Strong load factor of 81% (-1 ppts YoY) Passengers at 3.58 million, rose by 26% from prior year, matching 27% capacity growth YoY Average fare increased by 7% YoY up to 1,710 Baht, beating 4% growth in RASK Revenues 7,254 MB, EBITDAR 1,632 MB (22% Margin) TAA s cash balance of Baht 6.7 Billion 3 (net debt/equity 1.15X) Note : 1 As of July 2015 (Source: AAV, AOT and DCA) 2 As of October 2015 (Source: The World Travel Awards) 3 Including cash and cash equivalents, S-T investments, Investment in private funds L-T investments. 5

6 TAA : FINANCIAL HIGHLIGHTS REVENUES EBITDAR Unit: Million Baht +25% YoY Unit: Million Baht 17,479 21, % YoY 5,777 5, % YoY 7, % YoY 1,632 3,104 Unit: Million Baht NET PROFIT +>100% YoY 3Q15 VS 3Q14 Revenues rose by 31% resulting from an increase in passenger growth and avg. fare EBITDAR margin was at 22% (+6 ppts YoY) mainly from lower fuel cost Net profit margin was at 2% (+9 ppts YoY) +>100% YoY 1, (382) (455) 9M15 VS 9M14 Revenues increased by 25% due to a rise in passengers carried and avg. fare EBITDAR margin was at 26% (+8 ppts YoY) mainly from a sharply drop in oil price Net profit margin was at 7% (+10 ppts YoY) 6

7 AAV : FINANCIAL HIGHLIGHTS REVENUES NET PROFIT Unit: Million Baht 17, % YoY 21,873 Unit: Million Baht +>100% YoY % YoY 5,559 7,254 +>100% YoY 92 Unit: Baht BASIC EPS +>100% YoY +>100% YoY (0.0431) (0.0508) (209) (246) 3Q15 VS 3Q14 Revenue was at Baht 7,254 million (+31% YoY) Net profit (Parent) was Baht 92 million Basic EPS was Baht per share 9M15 VS 9M14 Revenue was at Baht 21,873 million (+25% YoY) Net profit (Parent) was Baht 804 million Basic EPS was Baht per share 7

8 OPERATIONAL HIGHLIGHTS GROWING PASSENGERS CARRIED Unit: Million passengers Domestic +26% YoY International % YoY CONTINUE EXPANDING ASK Unit: Million SOLID LOAD FACTOR -1 ppt YoY +1 ppt YoY 82% 81% 80% 81% AVERAGE FARE* RECOVERY Unit: Baht per pax 11, % YoY 13,290 +7% YoY +4% YoY 1,592 1,710 1,641 1,700 3, % YoY 4,445 * Removed fuel surcharge since Jan

9 IMPROVING RASK WHILE KEEPING COST LOW REVENUE PER ASK (RASK) Unit: Baht +4% YoY % YoY 1.65 COST PER ASK (CASK) Unit: Baht % YoY -9% YoY % Jet 1 ($/bbl.) Fuel Cost CASK ex-fuel 9M2015 EXPENSE BY NATURE 1 MOPS Singapore POSITIVE FUEL ENVIRONMENT Dep. & amort.,4% Others, 1% Guest service and distribution,5% SG&A,7% Repair and maintenance,8% Ramp and airport operation,13% Fuel,36% AirAsia Group Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Hedge Ratio 50% 50% 50% 50% 24% 24% 24% 24% Avg Hedge Cost (USD Jet Kero) Avg Hedge Cost Avg Effective Cost (USD Jet Kero) Avg Effective Cost Staff,11% Aircraft lease,15% 2 Current jet fuel price is USD60 per barrel 9

ANCILLARIES ENHANCEMENT STRATEGIES Encourage initial booking with Value Pack (bundle products of baggage, seat and meal with discount) & implementing dynamic baggage pricing Offer baggage promotion

10 ANCILLARIES ENHANCEMENT STRATEGIES Encourage initial booking with Value Pack (bundle products of baggage, seat and meal with discount) & implementing dynamic baggage pricing Offer baggage promotion with business partners Connectivity more than 200 destinations via FLY-THRU Driven demand of seat selection from viral clip bundle with lucky draw Ancillary per pax (Baht) % YoY % YoY % YoY Ancillary revenue (Baht mil.) +11% YoY 1,040 1,151 3,147 3,542 % of total revenue 19% 16% 18% 16% 10

11 ROUTE NETWORK As ended of: No. of destination - Domestic -International No. of weekly flights (Dom:Int l -> 64:36) SEP Route move ments: Additional frequencies: New destinations: 3Q2015 Bangkok Bangalore (1 st ) (Sep) UTP Nanchang (1 st ) (Sep) UTP Nanning (1 st ) (Sep) 4Q2015 UTP-Macau (1 st )(Nov) UTP-Singapore (1 st ) (Nov) UTP-Udonthani (1 st ) (Nov) UTP-Chiang Mai (1 st ) (Nov) UTP-Hat Yai (1 st ) (Dec) 11

FLEET PLAN OVERVIEW Thai AirAsia s fleet plan allows for continuous growth 2016-2018 NEOs

12 FLEET PLAN OVERVIEW Thai AirAsia s fleet plan allows for continuous growth NEOs fuel efficiency aircraft 4-YEAR FLEET PLAN Unit: Aircraft E 2016E 2017E 2018E FLEET PROFILE: 44 aircraft as of Sep operating leases Average age : 4.1 Yrs All A320s with single-class 180 seats 14 finance leases 12

13 IATA Operational Safety Audit (IOSA) Progress Completing IOSA standard IOSA Awareness Briefing 3 Jul 2015 The IOSA Registry Within 2Q2016 Trial audits for Thai AirAsia Jan

2 mil pax and 80% LF) Gradually improve average fare by 3-4% YoY Capitalized on hub network

14 2015F-2016F LOOKING FORWARD 45 at the end of 2015, planned 5 aircraft new deliveries in 2016 Aircraft 2015F targets of 14.5 mil pax with 82% load factor (FY2014: 12.2 mil pax and 80% LF) Gradually improve average fare by 3-4% YoY Capitalized on hub network Connectivity to 203 destinations via FLY-THRU Implement automate baggage drop by February 2016 Expects to complete the IOSA process within 2Q

15 Tel : (+66)

16 TAA STATEMENT OF COMPREHENSIVE INCOME Unit: Baht million 3Q15 3Q14 Change 9M15 9M14 Change Revenues 7, , % 21, , % Operating costs (6,350.0) (5,618.7) 13% (18,539.2) (17,059.4) 9% Net Gain (loss) from FOREX (231.4) 84.4 >-100% (300.3) >-100% Other income % % Total SG&A (588.3) (499.0) 18% (1,666.5) (1,372.8) 21% EBIT (277.9) >100% 1,954.7 (265.2) >100% Finance costs (88.2) (87.1) 1% (339.6) (205.7) 65% Income tax (22.9) (17.1) 34% (143.7) 15.8 >100% Net profit (loss)/ Comprehensive inc. (exp.) (382.1) >100% 1,471.4 (455.1) >100% Earnings per share (THB) 4.00 (8.77) >100% (10.45) >100% Net profit margin 2% -7% +9 ppts 7% -3% +10 ppts EBIT margin 4% -5% +9 ppts 9% -2% +11 ppts EBITDA margin 8% -1% +9 ppts 13% 2% +11 ppts EBITDAR margin 22% 16% +6 ppts 26% 18% +8 ppts 16

17 TAA STATEMENT OF FINANCIAL POSITION Unit: Baht million 3Q2015 FY2014 Change Cash and equivalents* 6, , % Aircraft, leasehold improvements, Equipment -net 18, , % Intangible assets % Other non-current assets % Total assets 27, , % Deferred revenues 3, , % Finance lease liabilities 14, , % Deferred tax liabilities, net % Total liabilities 21, , % Paid-up share capital % Premium on share capital 2, , % Retained earnings 3, , % Total shareholders equity 6, , % *Including cash and cash equivalents, S-T investments, Investment in private funds and L-T investments. 17

18 TAA KEY OPERATIONAL STATISTICS 3Q15 3Q14 Change 9M15 9M14 Change Passengers carried (million) % % Capacity (million seats) % % Load factor 81% 82% -1 ppt 81% 80% +1 ppt RPK (million) 3,651 2,957 23% 10,919 8,870 23% ASK( million) 4,445 3,553 25% 13,290 11,042 20% No. of stages flown 24,514 19,280 27% 74,085 60,936 22% Average stage length (km) 1,007 1,024-2% 997 1,000 0% Average fare (THB) 1,710 1,592 7% 1,700 1,641 4% RASK (THB) % % CASK (THB) % % CASK ex-fuel (THB) % % 18

19 AAV STATEMENT OF COMPREHENSIVE INCOME Unit: THB million Consolidated Consolidated Change 3Q15 3Q14 9M15 9M14 Change Revenues 7, , % 21, , % Operating costs (6,354.1) (5,621.0) 13% (18,551.4) (17,070.2) 9% Net Gain (loss) from FOREX (231.4) 84.4 >-100% (300.3) >-100% Other income % % Total SG&A (591.6) (497.1) 19% (1,668.3) (1,369.9) 22% EBIT (278.3) >100% 1,941.5 (272.5) >100% Finance costs (88.2) (87.1) 1% (339.6) (205.7) 65% Share of loss from investment in an associate (0.3) - N.A. (0.5) - N.A. Income tax (21.4) (17.0) 26% (141.0) 21.3 >-100% Net profit (loss) attributable to: (382.4) >100% 1,460.4 (456.9) >100% Owners of the parent 91.6 (209.0) >100% (246.4) >100% Non-controlling interests 76.6 (173.4) >100% (210.5) >100% Earnings per share (THB) (0.0431) >100% (0.0508) >100% 19

20 AAV STATEMENT OF FINANCIAL POSITION Unit: THB million 3Q15 Consolidated FY2014 Change Cash and equivalents* 6, , % Aircraft, leasehold improvements, 18, , % Equipment -net Intangible assets 14, , % Goodwill 8, , % Total assets 51, , % Deferred revenues 3, , % Finance lease liabilities 14, , % Deferred tax liabilities, net 3, , % Total liabilities 24, , % Paid-up share capital % Premium on share capital 2, , % Retained earnings 16, , % Equity attributable to parent 19, , % Non-controlling interests 7, , % Total shareholders equity 27, , % *Including cash and cash equivalents, S-T investments, Investment in private funds and L-T investments. 20

BUSINESS OVERVIEW Key milestones: Shareholding Structure: 100% AirAsia Berhad AirAsia Investment 45% Management Thai AirAsia (Opco) Public 46% 54% Asia Aviation (Listco) Stock Information : AAV 55%

21 BUSINESS OVERVIEW Key milestones: Shareholding Structure: 100% AirAsia Berhad AirAsia Investment 45% Management Thai AirAsia (Opco) Public 46% 54% Asia Aviation (Listco) Stock Information : AAV 55% Average Price 52 Weeks: 4.74 Baht Average Volume 52 Weeks: MB As of 30 October 2015: 4.62 Baht Began services from Bangkok to Phuket, Chiang Mai and Singapore with two Boeing 737 aircraft Moved from Don Mueang Airport to Suvarnabhumi Airport Received first delivery Airbus A320 Launched second hub in Phuket All new Airbus A320 fleet Moved back to Don Mueang Airport Owned first aircraft in our book Received first delivery of A320 sharklet Launched Third hub in Chiang Mai 2014 The World Best LCC s OTP Flightstats Launched Fourth hub in Krabi World s Best LCC 7 Times, SKYTRAX Launched Fifth hub in Utapao (Pattaya) 21

22 GLOSSARY Load Factor = Represents the number of passengers carried as a proportion to capacity, which is the number of seats available for passengers (180 seats for Airbus A320) Available seat kilometers (ASK) = which is the total number of seats available on all flights multiplied by the number of kilometers these seats were flown Revenue Passenger Kilometers (RPK) = Revenue passenger kilometers, which is the number of paying passengers carried on all flights multiplied by the number of kilometers 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 (kilometer) = Represents the average number of kilometers flown per flight Aircraft Utilization = 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. 22

Analyst Meeting 1Q/2015

Analyst Meeting 1Q/2015 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