THAI AIRWAYS INTERNATIONAL PLC.

Transcription

1 THAI AIRWAYS INTERNATIONAL PLC. 2Q/ Investor Relations Department

2 DISCLAIMER 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 geopolitical, economic and noncontrollable 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 herein 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 the Company s stock. 2 Investor Relations Department

3 THAI in 2010 MTHB USD mn Equiv. % Change Assets 293,760 9, Total Revenue 180,588 6, , Net Profit # of Aircraft 90* Destinations Served 72 Countries Served 35 *Excluding 6 B leased to Nok Air Million % Change 18.2/annum , Freight Transport (tons) /annum Available Ton Kilometer (ATK) 2, Passengers carried (# of people) Available Seat Kilometers (ASK) 3 Investor Relations Department

4 Factors Affecting Aviation Business Factors of Concern Natural Disasters Rate of Economic Growth Rapid Rise in Fuel Price FX Fluctuation EU Carbon Emissions Guideline THAI is taking precautionary actions to mitigate all risk factors ASEAN Open Sky and Liberalization Policy Competition from LCCs and Traditional Airlines Health Availability of New Aircraft Acquisition, Aging Fleet & Seat New Aircraft Technology /Trend Politics 4 Investor Relations Department

5 Operating Summary Units JanJul 11 (E) JanJul 10 % Change Passenger Production MASK 45,510 43, Passenger Traffic MRPK 32,852 31, Cabin Factor % Passenger Yield THB/km Note : Yield includes fuel surcharge Freight Production MADTK 2, , Freight Traffic MRFTK 1, , Freight Factor % Freight Yield THB/km Note : Yield includes fuel surcharge Avg. Fuel Cost USD/gallon (JanJun) (E) 3.07 (JanJun) Investor Relations Department

6 Financial Performance EBIT, EBITDA and Net Profit (Q2/2010 & Q2/2011) Units : THB mn 4,000 2,956 2,000 1, ,000 4,000 2,163 2,990 6,000 4,987 5,609 8,000 7,874 10,000 EBIT EBITDA NET PROFIT NET PROFIT Q2'10 Q2'11 (Exclude FX) Factors Impacting Q2 11 Results Impact from Japan Effective fuel hedging policy High fuel price Lower yield than Q1 11 Lower number of passengers than Q Investor Relations Department

7 Financial Performance EBIT, EBITDA and Net Profit (H1/2010 & H1/2011) Units : THB mn 20,000 15,000 10,000 3,874 5, ,208 9,775 11,973 1,884 Factors Impacting H1 11 Results Impact from Japan Effective fuel hedging policy High fuel price High yield than H1 10 5,000 10,000 1,632 EBIT EBITDA 7,256 NET PROFIT NET PROFIT H1'10 H1'11 (Exclude FX) Higher number of passengers than H Investor Relations Department

8 Rising Fuel Cost 150 Price of Jet Fuel (US$/bbl) (Singapore Spot Price) Average for Jan10 Mar10 May10 Jul10 Sep10 Nov10 Jan11 Mar11 May11 Jul11 8 Investor Relations Department

9 Fuel surcharge now covers fuel cost 9 Investor Relations Department

10 RPK is slightly higher than last year Daily Revenue Passenger Kilometer (RPK) RPK 2011 %YoY Apr % May +13.9% Jun +8.2% YTD +2.58% 10 Investor Relations Department

11 Improvement by Region Africa,ME Total Domestic Indo China Western Southern Northern North Pacific Europe Australia Others %RPK/day JanApr % 5.7% 1.1% 7.2% 4.3% 23.6% 2.8% 39.3% 12.2% 3.8% %YoY growth Jan11 3.1% 15.7% 0.7% 5.6% 1.8% 1.8% 4.9% 5.2% 3.1% 9.6% Feb11 3.0% 16.1% 8.3% 3.1% 2.1% 1.7% 4.3% 5.4% 3.5% 6.3% Mar11 4.4% 12.7% 1.5% 4.7% 10.3% 2.7% 3.7% 6.6% 13.3% 12.7% Apr11 7.5% 5.6% 18.7% 4.7% 24.0% 1.8% 5.1% 10.2% 6.7% 63.4% May % 18.2% 23.1% 8.9% 38.8% 22.8% 11.2% 1.3% 19.6% 62.6% Jun11 8.2% 24.9% 21.9% 2.0% 8.5% 23.6% 0.3% 0.7% 8.7% 5.9% Jul11 7.6% 21.7% 15.5% 1.8% 1.2% 15.7% 8.7% 2.9% 11.9% 6.8% 115 Aug11 2.9% 14.7% 9.8% 12.7% 8.9% 12.4% 11.2% 2.5% 19.2% 14.3% YTD 3.0% 0.3% 9.8% 1.6% 9.7% 7.7% 0.3% 1.1% 4.3% 15.9% 11 Investor Relations Department

12 Asia is No Strategic Different. Positioning International Destinations Domestic Destinations Chiang Rai Chennai Bangalore Tiruchirapalli Colombo Dhaka Vientiane Chiang Mai Hanoi Guilin Guangzhou Taipei Shenzhen Kaohsiung Hong Kong Macau Haikou Rangoon Luzon Is Bangkok Siem Reap Manila Ho Chiminh city Krabi Phnom Penh Phuket Banda Aceh Hat Yai Langkawi Kota Kinabalu Tawau Medan Penang Kuala Lumpur Bandar Seri Begawan Miri Johor Bahru Kuching Manado Pekanbaru Singapore Padang Palembang Ujung Pandang Solo City Jakarta Surabaya Bandung Yogyakarta Denpasar Bali Osaka Tokyo Air Asia Tiger Jetstar Dragon Nok Air Chiang Mai Made by Ake Made by Ake Made by Ake Bangkok Made by Ake Udorn Thani Made by Ake Ubon Ratchathani Darwin Cairns Perth Melbourne Sydney Brisbane Gold Coast Auckland Surat Thani Made Nakhon Si Thammarat by Ake Krabi Phuket Trang Had Yai Christchurch Narathiwat 13 Investor Relations Department

13 Market Share of LCCs Up Dramatically Domestic Market Regional Market Mn Passengers 15 Market Share Avg. Growth Rate ( ) Mn Passengers 25 Market Share Avg. Growth Rate ( ) % Others LCCs 15.0% 45.2% 7.4% 32.4% % 2.1% Others LCCs 47.6% 19.1% 4.4% 46.8% 83.8% THAI Airways 39.8% 2.3% % THAI Airways 33.2% 3.2% Investor Relations Department

14 New Strong Competitors from Middle East Middle East HUB Emirates Qatar Etihad 15 Investor Relations Department

15 Competitors Fleet Expansion Plan Competitors Fleet and Expansion Plan A Emirates Qatar Etihad Singapore Cathay Malaysia Vietnam THAI 16 Investor Relations Department

16 Overarching Strategic Plan Ensure strength and stability Strengthen internal organization Build operational stability Build strategic competitiveness Seek growth opportunities Emphasize CustomerValue EnsureCompetitiveness EnsureDynamism 17 Investor Relations Department

17 Strategic Roadmap Overall Strategic Roadmap Core Value Striving together towards a strong and sustainable THAI Customeroriented Competitive Dynamic Strategic Transformation Areas Corporate Portfolio Strategy Customer Value Strategy Route Network and Fleet Strategy Commercial Strategy Corporate Social Responsibility Strategy IT Strategy Efficiency, Flight Safety and Fuel Management Strategy Human Capital & Organization Effectiveness Strategy Financial Strategy Ultimate Goal Restore THAI to be the pride of Thailand around the world, as a leading Asian carrier that is consistently among the top 3 carriers in Asia and top 5 in the world for overall customer experience 18 Investor Relations Department

18 Strategic Tools to closing THAI business gap THAI Wing and Thai Tiger will provide a comprehensive product offering for THAI s product portfolio Brand positioning matrix for THAI and affiliated companies Product Offering Illustrative Premium full service Premium 3 class No frill Premium regional (wide body) Premium 2 class small* big connecting Regional Intercontinental Domestic Narrow body** Thai Tiger Low cost Launch June/July 2012 Pending Government Approval Shading indicates brand emphasis Market (Stage length) Note: * NOK focuses on DMK only; ** Possibilities surrounding expanding fleet to include widebody aircraft will be evaluated as opportunities arise Source: Team discussion 19 Investor Relations Department Less TG Strong THAI Wing Less Strong Less Less Thai Tiger NOK Strong Single emphasis

19 THAI s Portfolio Product by Cost Base Brand Brand positioning Cost base Premium network carrier MEDIUM to HIGH Minor improvements could be made in cost efficiency Regional carrier LOW to MEDIUM Low cost base achieved through aspects of LCC model, such as single aircraft type, new fleet, etc. Domestic valueformoney carrier Regional Ultralow cost carrier LOW to MEDIUM Domestic focus with some added value and maintaining very low cost No Frills LOW to ULTRA LOW (max seat density, max utilization) Source: Team discussion and analysis 20 Investor Relations Department

20 Competition for THAI Wing Lowcost carriers Regional FSC Fullservice carriers Source: Team discussion and analysis 21 Investor Relations Department

21 THAI Connecting Traffic Thai to build shorthaul and regional network strength to capture connecting traffic from Europe, Australia, and the Middle East Selected Kangaroo routes for the ME carriers and THAI (2009) London THAI Emirates Sapporo Etihad Qatar Bahrain Fukuoka Nagoya Tokyo Haneda Gulf Doha Abu Dhabi Dubai Bangkok Intercon trunk routes will be weakened if THAI is uncompetitive in regional connections Singapore Cost competitiveness is key to developing a robust regional connection to Southeast Asia from Europe, Australia and the Middle East Perth Sydney Melbourne Brisbane Source: Team discussion and analysis 22 Investor Relations Department

22 Building Customer Value Enhancing and improving products and services at all touch points to ensure consistent quality service. 23 Investor Relations Department

23 Product & Service Enhancements Call Center Call Center Increase Selection of of Entertainment Food & Beverage Food & Beverage Minimize Time Time for for Baggage Claim Premium Lounges Premium Lounges Royal Orchid Plus Royal Orchid Plus 24 Investor Relations Department

24 Enhance EService Capability EService on Mobile EService on Mobile Internet Booking Internet Booking Internet checkin with with home home print print boarding pass pass EPayment Services EPayment Services 25 Investor Relations Department

25 Statistic on Internet Checkin Ticket Sales Via Internet Checkin via Internet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 26 Investor Relations Department

26 Awards and Accolades To Be Top 3 in Asia and Top 5 in the World The World s Top Ten Airlines Skytrax Skytrax 2011 Best Airline Seat Economy Class Best On Board Catering Economy Class Skytrax Best Airline Lounge First Class Best Airport Services Norwegian Grand Travel Award Best Intercontinental Airline Business Traveler s Award Best Ground Service Best Lounges TTG Award Best Business Class Best Southeast Asian carrier Source: Skytrax Go Asia Award Best Asian carrier 27 Investor Relations Department

27 Current Fleet Current Fleet: 88 Aircraft Exc. 2 of ATR72 4 of leased to Nok Aircraft Type Version # of # of Seat Financial Aircraft First Business Premium Economy Economy Total Method A R O 36R A O, 3 FL A FL A O, 10 FL B O, 3 OL B O, 5 FL B O, 2 OL B777200ER 77E FL B FL 7732 TKE B777300ER OL Total ,529 4,143 43O, 9OL, 36 FL * 51% of O 9% of OL 40% of FL (* Approximately) O=Owned OL=Operating lease FL=Financial lease 28 Investor Relations Department

28 Aircraft Delivery NEW A/C DELIVERY TOTAL A (FL) 3 (FL) 6 B777300ER 2(OL) 6 (OL) 3 (FL) 3 (FL) 14 B777300ER (Jet Airways) 1+1 (OL) 2 A (FL) 3 (FL) 2 (FL) 12 A (FL) + 2 (OL) 2 (FL) + 6 (OL) 12 B7879 2(OL) 2 B7878 4(OL) 2(OL) 6 A320 4(OL) 2 (OL) 2 (FL) 3 (FL) 11 TOTAL Investor Relations Department

29 Phase Out Plan PHASEOUT PLAN TOTAL B B777300ER (Jet Airways) 5 5 A A B A A B * 1* ATR TOTAL Note: * Return from Nok Air 30 Investor Relations Department

30 Long Term Fleet Strategy TOTAL # of Aircraft Total Seats in operation 26,444 28,249 29,570 30,972 31,581 32,391 33,660 Seat Growth 5.8% 5.8% 4.7% 4.7% 2.0% 2.6% 3.9% 4.2% Age Fleet Age Investor Relations Department

31 Resolving Koito Seat Problem All have arrived in fleet A ZIM has completed delivery of all economy class seats and enabling the 5 new A aircraft to join the fleet in the following months. Delivery March April May June July 32 Investor Relations Department

32 Upgrades and Retrofit Schedule # of Aircraft First Business Economy Tentative Completion B Retrofitted Completed B No Retrofitted Retrofitted MayDec B Retrofitted Sep Jul B No Apr.Oct Investor Relations Department

33 Aircraft lease to Supplement Capacity Leased 3 B777300ER aircraft from Jet Airways for 3 years Another 2 B ER will be leased from Jet Airways : August and November 2011 Used on European flights and to replace routes where older A aircraft flies in the region First Class Seats Business Class Seats High level of Privacy Economy Class Seats 34 Investor Relations Department

34 IT Development Infrastructure Redesign and Migrate to Cloud EPayment Gateway Mobile Capability Data Management Enterprise Resource Planning (ERP) Internal Cooperation ECollaboration / Knowledge management Revenue Enhancement CRM / Cross Function Database / Limited Services 35 Investor Relations Department

35 Changes were made to better reflect customer demand Summer Program Suspension routes 2011 Route Network Changes Increased Flight Frequency BKKMilan v.v. 3 to 4 flights/week BKKBrisbane v.v. 5 to 7 flights/week BKKAuckland v.v. 5 to 7 flights/week BKKJakarta v.v. 3 flights/week NaritaBKK 3 to 5 flights/week Hong KongBKK 2 to 7 flights/week BKKHong Kong 2 to 4 flights/week PhuketHong Kong 5 to 7 flights/week Hong KongPhuket 5 to 7 flights/week BKKKuala Lumpur v.v. 4 to 5 flights/week BKKMumbai v.v. 4 to 5 flights/week BKKGayaVaranasiBKK 4 flights/week Flight Frequency Adjustment BKKOslo v.v. 5 flights/week BKKMoscow v.v. 3 flights/week Rerouting & Flight Frequency Adjustment BKKPhuketPerth 3 to 4 flights/week BKKPerth v.v. 4 to 3 flights/week Effective Mar. 27 Oct. 29, Investor Relations Department

36 2011 Route Network Changes Increase Direct Flights from BKK to Secondary Market and Increasing over all Connectivity Winter Program Suspension routes New Flights Opening BKKBelgium v.v. (As from 17NOV11) BKKCopenhagenPhuket (As from 11NOV11) BKKOsaka v.v. (As from 16NOV11) HKTSeoul v.v. BKKSingapore v.v. Flight Resumption BKKBeijing v.v. BKKKathmandu v.v. BKKHat Yai v.v. 3 Flights / Week 3 Flights / Week 3 Flights / Week 3 Flights / Week 7 Flights / Week 4 Flights / Week 3 Flights / Week 7 Flights / Week Route Adjustment BKKPhuketPerth v.v. BKKTokyoPhuket BKKChiang MaiPhuketBKK Additional Frequency BKKOslo v.v. BKKMoscow v.v. BKKPerth v.v. BKKXiamen v.v. BKKChengdu v.v. BKKNagoya v.v. (As from 01JAN12) BKKMumbai v.v. BKKGayaVaranasi v.v. (30OCT 31DEC11) HKTPerth v.v. BKKNarita v.v. BKKChiang MaiPhuket v.v. 5 to 7 Flights / Week 3 to 4 Flights / Week 3 to 4 Flights / Week 3 to 4 Flights / Week 4 to 5 Flights / Week 10 to 11 Flights / Week 5 to 6 Flights / Week 4 to 7 Flights / Week Effective Oct. 30, Investor Relations Department

37 Further Cost Control Measures THAI is committed to achieving the 20,000 MTHB cost reduction target agreed to with the Ministry of Finance through 2012 Personnel cost management by headcount freeze, Strategy overtime to control Reign and in optimize Costs vacation compensation Manage flight plan, Fuel hedging, aircraft cleaning and reserved fuel in appropriate level for fuel cost management Marketing expense management by promote direct sales channels and negotiate to reduce reservation Reduction of operating expense by review handling agreement and negotiate with local and handling abroad companies to reduce handling fee, reduce and Implement flexible crew onboard, control and reduce crew route expenses. etc Increase Revenue by dynamic fare adjustment, dynamic Fuel surcharge management, optimize the use of Revenue Management System (RMS) and increase direct sales via internet, mobiles etc. Increase BU s external revenue with less cost increment MTHB 60,000 30,000 Est. 1H/2011 Expense Compared to Budget 0 MTHB 12,000 8,000 4, , MTHB 49,684 or 1.3% below budget Est.1H/2011 3,215 6,897 Budget Yearly Cost Reduction Targets 20,000 MTHB 10, Was able to reduce nonfuel related cost by THB 252 mn or a 7.8% reduction 38 Investor Relations Department

38 Fuel Management Minimum 20% fuel hedging requirement to mitigate risk of rapid fuel cost rise Minimum 20% fuel hedging requirement to mitigate risk of rapid fuel cost rise Hedging Volume >80% Board Authority >60<=80% Fuel Price Risk Management Committee (President, EVP Finance & Accounting, VP, Director and Department) >30<=60% VP, Director and Department Level Decision >20<30% <=20% Board Authority 1m 2m 3m 4m 5m 6m 7m 8m 9m 10m 11m 12m 13m 14m 15m 16m 17m 18m >18 months Contract Period 39 Investor Relations Department

39 Fuel Management Hedging combined with fuel surcharge greatly mitigates fuel price fluctuation risk Percentage of Fuel Surcharge & Hedging Coverage Jan08 Feb08 Mar08 Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Aprl10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 57% 65% 62% 56% 51% 51% 61% 65% 69% 72% 72% 63% 123% 131% 163% 199% 143% 116% 82% 102% 91% 118% 112% 102% 110% 104% 116% 98% 74% 94% 106% 111% 103% 109% 101% 102% 98% 87% 88% 77% 75% 88% Monthly fuel hedging % of consumption by month 0% 0% 0% 0% 3% Jan08 Feb08 Mar08 Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 Aug11 Sep11 Oct11 Nov11 Dec11 Jan12 Feb12 Mar12 Apr12 May12 17% 38% 41% 44% 44% 49% 35% 27% 20% 23% 3% 3% 7% 13% 13% 17% 20% 27% 30% 44% 44% 44% 47% 47% 47% 33% 33% 33% 14% 14% 14% 51% 51% 51% 50% 50% 56% 69% 69% 69% 69% 69% 69% 69% 69% 69% 80% 80% 80% 40 Investor Relations Department Jun12

40 Emissions Control THAI is the first Asian airline to sign an agreement with IATA to find means to mitigate fuel 1 st airline Carbon Footprint Determined the carbon foot print of 2 meals and provided labeling for customers to choose Emissions Trading 2012 Amount of CO 2 ~1.07 mn tons Monetary Value THB 646 mn CERs 0.47 mn tons THB 239 mn EUAs 0.60 mn tons THB 407 mn Carbon Offset Launched the carbon offset program 41 Investor Relations Department

41 Improvements in Dynamism Project Uphold the principles of Good Corporate Governance Changes Made Ensuring transparency in all areas of operations Whistle Blower Policy Facilitate means to expedite decision making Reduce steps to improve decision process Invest in IT IT capability improves not only efficiency, decision making but also enhances customer satisfaction Performancebased Culture Senior management having clear cut KPIs and compensation is measured accordingly Geared for BUs to enhance efficiency in decision process & management Signed Service Level Agreements Structural change to enhance flexibility but also responsibility 42 Investor Relations Department

42 Pending Legal Issues EC US Cargo DOJ US Cargo Class Action Korea Rescinded all charges against THAI Stopped further proceedings Settled by paying USD 3.5 mn Pending charges is for KW 2.85 mn Wrote back a portion of reserves that were set aside 4,290 MTHB 2,507 MTHB 43 Investor Relations Department

43 Improved Capital Structure Cash to Total Revenue Improved Cash Position Raised 15,000 MTHB in in new new equity Received additional borrowing from financial institutions Obtained Revolving Credit Lines 8,000 MTHB Debenture issued in in May May 13, 13, Net interest bearing Debt to Equity Capital Structure Strengthened Q Investor Relations Department

44 Resulting Success THAI s share price reflects the confidence in the improved health of the Company THB/share 60 Implemented 55 recovery plan Cash flow crisis /1/09 4/4/09 4/7/09 4/10/09 4/1/09 Drafted & implemented strategies under TG 100 4/4/09 4/7/09 4/10/09 Success recapitalization 4/1/10 4/4/10 4/7/10 4/10/10 Share price peaked at THB upon being inducted back into the MSCI Fuel price Dec. 10 4/1/ Apr. 11 MSCI = Morgan Stanley Capital International 4/4/11 45 Investor Relations Department

45 Financial Performance 46 Investor Relations Department

46 Performance Summary (Q2/2010 & Q2/2011) Financial Performance THAI and its subsidiary AprJun (Units : MTHB) Total Revenue 45,559 39,634 Total Expense (50,203) (41,043) Foreign currency exchange (Gain) (2,265) 4,391 Losses on redemption debentures (1) 0 Share of profit of investments by the equity method Profit(Loss) before finance costs, income tax (6,805) 3,158 Financial Cost (1,419) (1,263) Net tax expenses(income) 360 (487) Net profits (losses) (7,864) 1,408 Profits (losses) Attributable to: Non controlling interest (10) (7) Profits (losses) Attributable to: Owners of the parent (7,874) 1, Investor Relations Department

47 Operating / Total Revenue (Q2/2010 & Q2/2011) Financial Performance Operating Revenue Total Revenue Units : MTHB *Operating Rev. up 15.69% , % to Revenue % Change Tot. Rev. Passenger Freight Mail ,487 Other activities Interest income Q2'10 Q2'11 Passenger Freight Mail Other activities Interest income Other income Other income Total Income *Excludes Interest & Other income Operating revenue Q2 10 = 38,759 MTHB Operating revenue Q2 11 = 44,840 MTHB Total revenue Q2 10 = 39,634 MTHB Total revenue Q2 11 = 45,559 MTHB 48 Investor Relations Department

48 50,000 40,000 30,000 20,000 10,000 0 Operating / Total Expense (Q2/2010 & Q2/2011) Units : MTHB 1,011 5,118 2,034 1,234 2,062 4,520 13,801 7,660 Q2'10 Operating Expense **Operating Exp. Up 21.78% Q2'11 1,475 5,007 3,085 1,362 2,147 5,105 19,370 8,688 Financial Performance Total Expense % Change % of Expense YoY Tot. Exp. Personnel expense Fuel and oil Flight service expense Inventories and supplies Crew expense Maintenance/overhual Depreciation/amortisation Aircraft lease/spare parts Personnel Fuel and Oil Flight Service Expense Inventory&Supply Crew Expense Aircraft Maintenance Depreciation Lease of a/c ** Excludes FX & Impairment losses Operating expense Q2 10 = 49,946 MTHB Operating expense Q2 11 = 41,012 MTHB Other expense Total Expense Total expense Q2 10 = 36,652MTHB Total expense Q2 11 = 52,467 MTHB 49 Investor Relations Department

49 Financial Performance Ratios Q2/2010 & Q2/2011 Ratios units Q2 10 Q2 11 Earnings Per Share (THB) EBIT (MTHB) 2, , EBITDA (MTHB) 2, EBITDAR (MTHB) 3, , Book Value (MTHB) 72, , Book Value per Share (THB) Total Debt to Equity (Times) Net Debt to Equity (Times) Interest Coverage (Times) Operating Profit Margin (%) Net Profit Margin (%) EBITDA Margin (%) Investor Relations Department

50 Performance Summary (H1/2010 & H1/2011) Financial Performance THAI and its subsidiary AprJun (Units : MTHB) Total Revenue 97,410 89,440 Total Expense (96,671) (84,105) Foreign currency exchange (Gain) (5,623) 10,090 Losses on redemption debentures (1) 0 Share of profit of investments by the equity method Profit(Loss) before finance costs, income tax (4,742) 15,594 Financial Cost (2,728) (2,607) Net tax expenses(income) 239 (986) Net profits (losses) (7,231) 12,001 Profits (losses) Attributable to: Non controlling interest (25) (27) Profits (losses) Attributable to: Owners of the parent (7,256) 11, Investor Relations Department

51 Operating / Total Revenue (H1/2010 & H1/2011) Financial Performance Units : MTHB 120, , ,000 90, ,730 80,000 70,000 1,324 1,703 Operating Revenue *Operating Rev. up 9.34% , ,000 50,000 40,000 77,422 70,510 30,000 20,000 10,000 0 H1'10 H1'11 Passenger Freight Mail Other activities Interest income Other income Total Revenue % to Revenue % Change Tot. Rev. Passenger Freight Mail Other activities Interest income Other income Total Income *Excludes Interest & Other income Operating revenue H1 10 = 87,672 MTHB Operating revenue H1 11 = 95,865 MTHB Total revenue Q1 10 = 89,440 MTHB Total revenue Q1 11 = 97,410 MTHB 52 Investor Relations Department

52 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Operating / Total Expense (H1/2010 & H1/2011) Units : MTHB 0 5,215 2,749 1,351 2,381 4,988 14,291 7, H1'10 H1'11 2,910 9,803 5,579 2,709 2,910 10,196 36,881 16,428 Personnel Fuel and Oil Flight Service Expense Inventory&Supply Crew Expense Aircraft Maintenance Depreciation Operating Expense **Operating Exp. Up 14.37% Lease of a/c ** Excludes FX & Impairment losses Operating expense H1 10 = 83,985 MTHB Operating expense H1 11 = 96,057 MTHB Financial Performance Total Expense % Change % of Expense YoY Tot. Exp. Personnel expense Fuel and oil Flight service expense Inventories and supplies Crew expense Maintenance/overhual Depreciation/amortisation Aircraft lease/spare parts Other expense Total Expense Total expense H1 10 = 74,014 MTHB Total expense H1 11 = 102,294 MTHB 53 Investor Relations Department

53 Financial Performance Ratios H1/2010 & H1/2011 Ratios units H1 10 H1 11 Earnings Per Share (THB) EBIT (MTHB) 3, EBITDA (MTHB) 14,208 9,775 EBITDAR (MTHB) 15,717 12,686 Book Value (MTHB) 72,382 66,366 Book Value per Share (THB) Total Debt to Equity (Times) Net Debt to Equity (Times) Interest Coverage (Times) Operating Profit Margin (%) Net Profit Margin (%) EBITDA Margin (%) Investor Relations Department

54 Foreign Currency Exposure (Year 2010) Financial Performance Unit : MTHB Revenue Expense Surplus Outstanding Borrowings or Deficit Before Swap After Swap Amount % Amount % Amount Amount % Amount % USD BASED 85, , ,193 1, ,212 1 USD 18,604 79,340 Others (1) 67,197 10,654 EUR BASED 35, , ,180 49, , EUR 16,809 5,623 Others (2) 18,401 2,407 JPY 13, , ,529 13, ,766 9 THB 45, , ,475 80, , TOTAL 180, , , , , Revenue Expense Outstanding 1% 25% 48% 32% 60% 55% 35% 7% 20% 3% 5% 9% USD BASED EUR BASED JPY THB 55 Investor Relations Department

55 Financial Performance Proportion of Fixed and Float (As of Jun 2011) Before Swap After Swap 32% 47% 68% 53% Fixed Float Fixed Float Percentage of TOTAL (TOTAL = 146,338 MTHB) Percentage of TOTAL (TOTAL = 146,388 MTHB) 56 Investor Relations Department

56 Industry Outlook Economic & Airline Industry Trend and Growth for Global Economy expected to grow by 5% IMF Global # of Tourists expected grow by 45 UNWTO Passenger Traffic expected to grow by 5.2% IATA Air Traffic Transportation expected to grow by 5.5% IATA 57 Investor Relations Department

57 Passenger from / to Thailand Forecast Industry Outlook Thailand Passengers (Millions) IATA International Passenger Forecast CAGR (As September 2010) World 7.9% 4.9% 5.4% 5.4% 5.4% 5.3% Asia Pacific 11.6% 7.2% 6.9% 6.5% 6.1% 6.7% Actual Estimate TG Forecast 5.2% 48.0M M 20.6M 9.9M 5.3M Inter. 3.2% Reg. 2.7% Dom. 5.2% Intercont. 5.0% 30.3M 23.5M 12.7M 6.8M 8.8% 32.9M 8.5% 25.5M 2.8% 13.1M 9.7% 7.5M 03/04 04/05 05/06 06/ F 2010 F 2011 F 2012 F 2013 F 2014 F 2015 F 2016 F % 6.3% 4.6% 6.0% 37.2M 28.8M 14.3M 8.4M 5.2% 4.0 % 5.3% 37.2M 17.4M 10.8M 58 Investor Relations Department

58 Appendix 59 Investor Relations Department

59 Revenue By Class By Area Total revenue = 76,079 MTHB 60 Investor Relations Department

60 # of PAX By Class By Area Total passengers = 9,125, Investor Relations Department

61 Operating Statistics ( 000) 7,000 5,000 Passenger Carried Year 2010 = 18.2 million (decreased 1.7% YoY) Q2/11 = 4.2 million (increased 13.4% YoY) Year 2009 Year 2010 Year ,088 5,167 4,684 4,589 4,833 4,923 4,114 4,371 4,201 3,662 3,000 1,000 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Freight Carried Year 2010 = 713,931 tons (increased 30.8% YoY) Q2/11 = 174,570 tons (decreased 2.7% YoY) (Tons) 190,000 Year 2009 Year , , , , , ,749 Year , , , , , , ,000 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 62 Investor Relations Department

62 Operating Statistics Passenger (Million) 8,000 6, Year 2009 Year 2010 Year (%) , , Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 (E) ASK RPK C/F YoY (Month) YoY (Quarter) YoY (Year) Jul'11(E) Jul'10 YoY% Q2'11 Q2'10 YoY% Year'10 Year'09 YoY% MASK 6,767 6, ,172 17, ,600 72, MRPK 5,234 4, ,737 11, ,676 52, Cabin factor% Investor Relations Department

63 Operating Statistics Freight (Million) Year 2009 Year 2010 Year 2011 (%) (E) Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 ADTK RFTK F/F YoY (Month) YoY (Quarter) YoY (Year) Jul'11(E) Jul'10 YoY% Q2'11 Q2'10 YoY% Year'10 Year'09 YoY% MADTK ,250 1, ,708 4, MRFTK ,895 2, Freight Factor% Investor Relations Department

64 Operating Statistics Passenger Yield (Including Fuel Surcharge) (THB/Km) (THB/Km) Passenger Yield (Excluding Fuel Surcharge) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2009 Year 2010 Year 2011 (E) (E) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2009 Year 2010 Year Investor Relations Department

65 Operating Statistics (THB/Km) (THB/Km) Freight Yield (Including Fuel Surcharge) Freight Yield (Excluding Fuel Surcharge) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2009 Year 2010 Year 2011 (E) (E) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2009 Year 2010 Year Investor Relations Department