http://www.thaiairways.com/aboutthai/investorrelations/en/investor.html THAI AIRWAYS INTERNATIONAL PLC. Q1/011 (Updated July 011) 1 Investor Relations Department
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. Investor Relations Department
THAI in 010 MTHB USD mn Equiv. % Change Assets 93,760 9,79 8.1 Total Revenue 180,588 6,00 11.7 Net Profit 15,398 514 107.6 # of Aircraft 90* Destinations Served 7 Countries Served 35 *Excluding 6 B 737400 leased to Nok Air Million % Change Passengers carried (# of people) 18./annum 1.7 Available Seat Kilometers (ASK) 55,676 +5.9 Freight Transport (tons) 713.9 /annum +30.8 Available Ton Kilometer (ATK),895 +38.4 3 Investor Relations Department
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
Operating Summary Units JanJun 11 JanJun 10 % Change Passenger Production MASK 38,743 37,018 +4.7 Passenger Traffic MRPK 7,618 7,09 +. Cabin Factor % 71.3 73.0.4 Passenger Yield THB/km Jun 11 (E).63 Jun 10.4 +8.9 Note : Yield includes fuel surcharge Freight Production MADTK,483,1 +11.8 Freight Traffic MRFTK 1,4 1,383 +.8 Freight Factor % 57.3 6. 8.0 Freight Yield THB/km Jun 11 (E) 9.78 Jun 10 9.65 +1.3 Note : Yield includes fuel surcharge Avg. Fuel Cost USD/gallon (E) 3.07.5 +36.4 5 Investor Relations Department
Financial Performance EBIT, EBITDA and Net Profit (Q1/010 & Q1/011) Units : THB mn 1,000 11,5 9,755 10,57 10,000 8,000 6,037 6,000 4,960 4,874 3,976 4,000,000 618 EBIT EBITDA Net Profit Net Profit Q1'10 Q1'11 (Exclude FX) Factors Impacting Q1 11 Results Stronger contribution from freight business Higher average PAX yield Effective fuel hedging policy Impact from Japan High fuel price Lower # of passenger 6 Investor Relations Department
Rising Fuel Cost 7 Investor Relations Department
Fuel surcharge now covers fuel cost 8 Investor Relations Department
RPK is slightly higher than last year Daily Revenue Passenger Kilometer (RPK) RPK 011 %YoY Apr. +7.50% May +13.9% Jun +8.% YTD +.58% 9 Investor Relations Department
RPK by Region Change in Revenue Passenger Kilometer :RPK (%YoY) 10 Investor Relations Department
Performance is related to Product Quality Change in RPK (%YoY) and CABIN FACTOR (%) For EUROPE 11 Investor Relations Department
Competitors Have Increased Significantly Traditional full service airlines Newly established full service airlines Low Cost Carriers 1 Investor Relations Department
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 Krabi Phuket Made Nakhon Si Thammarat by Ake Trang Had Yai Christchurch Narathiwat 13 Investor Relations Department
Market Share of LCCs Up Dramatically Domestic Market Regional Market Mn Passengers 15 Market Share Avg. Growth Rate (003010) Mn Passengers 5 Market Share Avg. Growth Rate (003010) 10 5 16.% Others LCCs 15.0% 45.% 7.4% 3.4% 0 15 10 55.7%.1% Others LCCs 47.6% 19.1% 4.4% 46.8% 83.8% THAI Airways 39.8%.3% 5 4.% THAI Airways 33.% 3.% 0 0 003 010 003 010 14 Investor Relations Department
New Strong Competitors from Middle East Middle East HUB Emirates Qatar Etihad 15 Investor Relations Department
Competitors Fleet Expansion Plan Number 400 350 300 Competitors Fleet and Expansion Plan Awaiting delivery Existing 50 00 150 A380 100 50 0 Emirates Qatar Etihad Singapore Cathay Malaysia Vietnam THAI Existing/Awaiting delivery 15/75 /5 /10 11/8 /6 /4 /6 16 Investor Relations Department
Overarching Strategic Plan 011 01 013017 Ensure strength and stability 009 010 Strengthen internal organization Build operational stability Build strategic competitiveness Seek growth opportunities Emphasize Customer Value Ensure Competitiveness Ensure Dynamism 17 Investor Relations Department
Strategic Roadmap Overall Strategic Roadmap Core Value Striving together towards a strong and sustainable THAI Customeroriented Competitive Dynamic 1 3 4 5 6 7 8 9 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
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 Premium regional (wide body) Premium class Shading indicates brand emphasis Less TG Strong THAI Wing Less Strong Less No frill small* big connecting Regional Intercontinental Domestic Narrow body** Thai Tiger Low cost Thai Tiger 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 NOK Strong Single emphasis
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 0 Investor Relations Department
Competition for THAI Wing Lowcost carriers Regional FSC Fullservice carriers Source: Team discussion and analysis 1 Investor Relations Department
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 (009) 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 Investor Relations Department
Building Customer Value Enhancing and improving products and services at all touch points to ensure consistent quality service. 3 Investor Relations Department
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 4 Investor Relations Department
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 5 Investor Relations Department
Statistic on Internet Checkin Ticket Sales Via Internet Checkin via Internet % % 10.0 9.0 8.0 7.0 Year 011 Year 010 7.0 6.0 5.0 Year 011 Year 010 6.0 5.0 4.0 3.0 Year 009 4.0 3.0.0 Year 009.0 1.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Aug Nov Dec 1.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Aug Nov Dec 6 Investor Relations Department
Awards and Accolades To Be Top 3 in Asia and Top 5 in the World The World s Top Ten Airlines Skytrax 011 010 009 1 3 4 Skytrax 011 Best Airline Seat Economy Class Best On Board Catering Economy Class Skytrax 010 3 1 3 Best Airline Lounge First Class Best Airport Services 4 4 1 5 6 7 8 9 10 6 7 5 8 7 6 Norwegian Grand Travel Award Best Intercontinental Airline Business Traveler s Award Best Ground Service Best Lounges 9 10 8 5 TTG Award Best Business Class Best Southeast Asian carrier Source: Skytrax Go Asia Award Best Asian carrier 7 Investor Relations Department
Current Fleet Current Fleet: 89 Aircraft Exc. of ATR7 4 of 737400 leased to Nok Aircraft Type Version # of # of Seat Financial Aircraft First Business Premium Economy Economy Total Method A300600 36R1 8 0 46 0 01 47 13 O 36R3 5 0 8 0 3 60 A340500 345 4 0 60 4 113 15 1 O, 3 FL A340600 3461 6 8 60 0 199 67 6 FL A330300 330 1 0 4 0 63 305 10 O, 10 FL 3303 8 0 36 0 63 99 B737400 7341 5 0 1 0 138 150 O, 3 OL B747400 744 6 14 50 0 35 389 13 O, 5 FL 7443 1 10 40 0 35 375 B77700 773 8 0 30 0 79 309 6 O, OL B77700ER 77E1 6 0 30 0 6 9 6 FL B777300 773 5 0 34 0 330 364 6 FL 773 TKE 1 0 34 0 35 359 B777300ER 7739 3 8 30 0 74 31 3 OL Total 89 40 53 4 3,59 4,143 45 O, 8OL, 36 FL O = Owned / OL = Operating lease / FL = Financial lease 8 Investor Relations Department
Aircraft Delivery and Phase Out Plan NEW A/C DELIVERY 011 01 013 014 015 016 017 TOTAL A380800 3 3 6 B777300ER 6 3 3 14 B777300ER (Jet Airways) A330300 5+ 3 1 A350900 I + R I + 6R 1 B7879 B7878 4 6 A30 4 3 11 TOTAL 9 1 13 9 8 4 10 65 PHASEOUT PLAN 011 01 013 014 015 016 017 TOTAL B747400 6 B777300ER (Jet Airways) 5 5 A340500 4 A340600 6 B77700 A330300 3 3 A300600 4 3 13 B737400 3* 1* 3 9 ATR7 TOTAL 4 11 14 5 7 7 50 # of Aircraft 89 93 99 100 10 104 105 Total Seats in operation 6,444 8,49 9,570 30,97 31,581 3,391 33,660 Seat Growth 5.8% 5.8% 4.7% 4.7%.0%.6% 3.9% 4.% Note: * Return from Nok Air 9 Investor Relations Department
Longterm Fleet Strategy 011013 014017 0180 Total Medium sized body aircraft 6 1+17 = 38 47 + 17 = 64 Narrow body aircraft 11 11 Total 37 38 75 Age : yrs 14.0 Avg. Fleet Age to Drop to 7.6 yrs. 1.0 10.0 8.0 1.0 10.9 10.0 9.3 9.6 9. 8.8 8.3 7.9 7.6 7. 7.3 7.6 6.0 4.0.0 0.0 010 011 01 013 014 015 016 017 018 019 00 01 0 30 Investor Relations Department
Resolving Koito Seat Problem A330300 ZIM has completed delivery of all economy class seats and enabling the 5 new A330300 aircraft to join the fleet in the following months. Delivery March April May June July 31 Investor Relations Department
Upgrades and Retrofit Schedule # of Aircraft First Business Economy Tentative Completion B777300 6 Retrofitted Completed B747400 No. 71 6 Retrofitted Retrofitted MayDec. 011 B77700 8 Retrofitted Sep. 011 Jul. 01 B747400 No. 1318 6 Apr.Oct. 01 3 Investor Relations Department
Aircraft lease to Supplement Capacity Leased 3 B777300ER aircraft from Jet Airways for 3 years Another B777 300ER will be leased from Jet Airways : August and November 011 Used on European flights and to replace routes where older A330300 aircraft flies in the region First Class Seats Business Class Seats High level of Privacy Economy Class Seats 33 Investor Relations Department
Changes were made to better reflect customer demand Summer Program Suspension routes 011 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 to 7 flights/week BKKHong Kong to 4 flights/week PhuketHong Kong Hong KongPhuket 5 to 7 flights/week 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. 7 Oct. 9, 011 34 Investor Relations Department
011 Route Network Changes Increase Direct Flights from BKK to Secondary Market and Increasing over all Connectivity Winter Program Route Adjustment Suspension routes New Flights Opening BKKPhuketPerth v.v. BKKTokyoPhuket BKKChiang MaiPhuketBKK HKTPerth v.v. BKKNarita v.v. BKKChiang Mai PhuketChiang MaiBKK BKKBelgium v.v. (As from 17NOV11) BKKCopenhagenPhuket (As from 11NOV11) 3 Flights / Week 3 Flights / Week Additional Frequency BKKOslo v.v. BKKMoscow v.v. 5 to 7 Flights / Week 3 to 4 Flights / Week BKKOsaka v.v. (As from 16NOV11) HKTSeoul v.v. 3 Flights / Week 3 Flights / Week BKKPerth v.v. BKKXiamen v.v. 3 to 4 Flights / Week 3 to 4 Flights / Week BKKSingapore v.v. Flight Resumption BKKBeijing v.v. BKKKathmandu v.v. 7 Flights / Week 4 Flights / Week 3 Flights / Week BKKNagoya v.v. (As from 01JAN1) BKKMumbai v.v. BKKGayaVaranasi v.v. (30OCT 31DEC11) 3 to 4 Flights / Week 5 to 6 Flights / Week 4 to 7 Flights / Week BKKHat Yai v.v. 7 Flights / Week Effective Oct. 30, 011 35 Investor Relations Department
THAI is committed to achieving the 0,000 MTHB cost reduction target agreed to with the Ministry of Finance through 01 Further Cost Control Measures 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/011 Expense Compared to Budget 0 MTHB 1,000 8,000 4,000 0 49,050 634 MTHB 49,684 or 1.3% below budget Est.1H/011 3,15 6,897 Budget Yearly Cost Reduction Targets 0,000 MTHB 10,697 010 011 01 Was able to reduce nonfuel related cost by THB 5 mn or a 7.8% reduction 36 Investor Relations Department
Fuel Management Minimum 0% fuel hedging requirement to mitigate risk of rapid fuel cost rise Minimum 0% 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 >0<30% <=0% Board Authority 1m m 3m 4m 5m 6m 7m 8m 9m 10m 11m 1m 13m 14m 15m 16m 17m 18m >18 months Contract Period 37 Investor Relations Department
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% 6% 56% 51% 51% 61% 65% 69% 7% 7% 63% 13% 131% 163% 199% 143% 116% 8% 10% 91% 118% 11% 10% 110% 104% 116% 98% 74% 94% 106% 111% 103% 109% 101% 10% 98% 87% 88% 77% 75% 88% Monthly fuel hedging 008011 % of consumption by month 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 Jan1 Feb1 Mar1 Apr1 May1 Jun1 0% 0% 0% 0% 3% 3% 3% 7% 17% 38% 41% 44% 44% 35% 7% 0% 3% 13% 13% 17% 9% 9% 9% 0% 7% 30% 5% 5% 5% 49% 44% 44% 44% 47% 47% 47% 51% 51% 51% 50% 50% 56% 69% 69% 69% 69% 69% 69% 64% 64% 64% 80% 80% 80% 38 Investor Relations Department
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 meals and provided labeling for customers to choose Emissions Trading 01 Amount of CO ~1.07 mn tons Monetary Value THB 646 mn CERs 0.47 mn tons THB 39 mn EUAs 0.60 mn tons THB 407 mn Carbon Offset Launched the carbon offset program 39 Investor Relations Department
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 Invest in IT Reduce steps to improve decision process 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 40 Investor Relations Department
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.85 mn Wrote back a portion of reserves that were set aside 4,90 MTHB,507 MTHB 41 Investor Relations Department
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, 011 5 4 3 1 0 008 Net interest bearing Debt to Equity 3.04 008.66 009 010 Capital Structure Strengthened 009 010 1.30 1.45 Q1 011 4 Investor Relations Department
Resulting Success THAI s share price reflects the confidence in the improved health of the Company THB/share 60 55 50 45 40 35 30 5 0 15 10 5 0 4/1/09 Cash flow crisis 4/4/09 Implemented recovery plan 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 57.75 upon being inducted back into the MSCI Fuel price 103.61 USD/bbl @ 9 Dec. 10 4/1/11 137.57 USD/bbl @ 0 Apr. 11 MSCI = Morgan Stanley Capital International 4/4/11 43 Investor Relations Department
Financial Performance 44 Investor Relations Department
Financial Performance Performance Summary (Q1/011) THAI and its subsidiary JanMar (Units : MTHB) 011 010 Total Revenue 51,851 49,806 Total Expense 46,468 43,061 Foreign currency exchange (Gain) 3,358 5,698 Share of losses of investments by the equity method 38 7 Profit(Loss) before finance costs, income tax,063 1,436 Financial Cost 1,309 1,345 Income tax expense 11 499 Net profits (losses) 633 10,59 Profits (losses) Attributable to: Non controlling interest 15 0 Equity holders of the parent 618 10,57 45 Investor Relations Department
Operating / Total Revenue (Q1/010 & Q1/011) Financial Performance Units : MTHB 60,000 50,000 31 40,000 861,09 Operating Revenue *Operating Rev. up 4.3% 706 10,135 8 04 6,05 6,751 Total Revenue % to Revenue % Change Tot. Rev. Passenger 3.1 80.88 Freight 1.05 13.0 30,000 Mail 10.19 0.39 0,000 40,631 41,935 Other activities 5.19 4.1 10,000 Interest income 91.51 0.3 0 Q1'10 Q1'11 Passenger Freight Mail Other activities Interest income Other income Other income 18.06 1.36 Total Income 4.11 100.00 *Excludes Interest & Other income Operating revenue Q1 10 = 48,913 MTHB Operating revenue Q1 11 = 51,05 MTHB Total revenue Q1 10 = 49,805 MTHB Total revenue Q1 11 = 51,851 MTHB 46 Investor Relations Department
50,000 40,000 30,000 0,000 10,000 0 Operating / Total Expense (Q1/010 & Q1/011) Units : MTHB 498 5,15,749 1,351,381 4,988 14,91 1,436 4,795,494 1,347,0 5,091 17,510 7,670 7,739 Q1'10 Q1'11 Personnel Fuel and Oil Flight Service Expense Inventory&Supply Crew Expense Aircraft Maintenance Depreciation Operating Expense **Operating Exp. Up 7.30% Lease of a/c ** Excludes FX & Impairment losses Operating expense Q1 10 = 4,973 MTHB Operating expense Q1 11 = 46,111 MTHB Financial Performance Total Expense % Change % of Expense YoY Tot. Exp. Personnel expense 0.90 15.53 Fuel and oil.5 35.14 Flight service expense.06 10. Inventories and supplies 6.74 4.46 Crew expense 0.3.70 Maintenance/overhual 9.5 5.01 Depreciation/amortisation 8.05 9.6 Aircraft lease/spare parts 188.51.88 Other expense 504.00 14.44 **Total Expense 33.36 100.00 Total expense Q1 10 = 37,36 MTHB Total expense Q1 11 = 49,86 MTHB 47 Investor Relations Department
Financial Performance Ratios Q1 010 & Q1 011 Ratios units Q1 10 Q1 11 Earnings Per Share (THB) 6. 0.8 EBIT (MTHB) 6,037 4,960 EBITDA (MTHB) 11,5 9,755 EBITDAR (MTHB) 11,750 11,191 Book Value (MTHB) 63,670 76,71 Book Value per Share (THB) 37.48 35.14 Total Debt to Equity (Times) 3.90.80 Net Debt to Equity (Times).35 1.88 Debt Service Coverage (Times).00 1.50 Interest Coverage (Times) 8.40 7.50 Operating Profit Margin (%) 1.30 9.70 Net Profit Margin (%) 1.60 1.0 EBITDA Margin (%) 3.00 19.10 Return on Total Assets (%) 3.80 0.80 Return on Total Equity (%) 0.10 0.0 48 Investor Relations Department
Foreign Currency Exposure (Year 010) Revenue Expense Surplus Outstanding Borrowings or Deficit Before Swap After Swap Amount % Amount % Amount Amount % Amount % USD BASED 85,801 48 89,994 60 4,193 1,977 1 1,1 1 USD 18,604 79,340 Others (1) 67,197 10,654 EUR BASED 35,10 0 8,030 5 7,180 49,796 34 50,584 35 EUR 16,809 5,63 Others () 18,401,407 Financial Performance Unit : MTHB JPY 13,509 7 3,980 3 9,59 13,766 9 13,766 9 THB 45,753 5 47,8 3 1,475 80,741 55 80,741 55 TOTAL 180,73 100.00 149,3 100.00 31,041 146,80 100 146,303 100 Revenue Expense Outstanding 1% 5% 48% 3% 60% 55% 35% 7% 0% 3% 5% 9% USD BASED EUR BASED JPY THB 49 Investor Relations Department
Financial Performance Proportion of Fixed and Float (As of Jun 011) Before Swap After Swap 3% 47% 68% 53% Fixed Float Fixed Float Percentage of TOTAL (TOTAL = 146,338 MTHB) Percentage of TOTAL (TOTAL = 146,388 MTHB) 50 Investor Relations Department
Industry Outlook Economic & Airline Industry Trend and Growth for 01101 01 Global Economy expected to grow by 5% IMF Global # of Tourists expected grow by 45 UNWTO Passenger Traffic expected to grow by 5.% IATA Air Traffic Transportation expected to grow by 5.5% IATA 51 Investor Relations Department
Passenger from / to Thailand Forecast 011017 Industry Outlook Thailand Passengers (Millions) 50 45 40 IATA International Passenger Forecast Actual 010 011 01 013 014 CAGR011014 (As September 010) World 7.9% 4.9% 5.4% 5.4% 5.4% 5.3% Asia Pacific 11.6% 7.% 6.9% 6.5% 6.1% 6.7% Estimate 011017 International 5.5 % Regional 5.5 % Intercont. 5.5 % Domestic 4. % TG Forecast 5.% 48.0M 35 30 5 0 15 10 5 0 5.9M 0.6M 9.9M 5.3M Inter. 3.% Reg..7% Dom. 5.% Intercont. 5.0% 30.3M 3.5M 1.7M 6.8M 8.8% 3.9M 8.5% 5.5M.8% 13.1M 9.7% 7.5M 03/04 04/05 05/06 06/07 008 009 F 010 F 011 F 01 F 013 F 014 F 015 F 016 F 017 6.3% 6.3% 4.6% 6.0% 37.M 8.8M 14.3M 8.4M 5.% 4.0 % 5.3% 37.M 17.4M 10.8M 5 Investor Relations Department
Appendix 53 Investor Relations Department
Operating Statistics ( 000) 7,000 5,000 Passenger Carried Year 010 = 18. million (decreased 1.7% YoY) Q/11 = 4. million (increased 13.4% YoY) Year 009 Year 010 Year 011 5,088 5,167 4,684 4,589 4,833 4,93 4,114 4,371 4,01 3,66 3,000 1,000 Q1'09 Q'09 Q3'09 Q4'09 Q1'10 Q'10 Q3'10 Q4'10 Q1'11 Q'11 Freight Carried Year 010 = 713,931 tons (increased 30.8% YoY) Q/11 = 174,570 tons (decreased.7% YoY) (Tons) 190,000 Year 009 Year 010 179,39 180,341 167,341 166,155 188,109 17,749 Year 011 174,570 160,000 140,889 130,000 113,735 14,819 100,000 Q1'09 Q'09 Q3'09 Q4'09 Q1'10 Q'10 Q3'10 Q4'10 Q1'11 Q'11 54 Investor Relations Department
Passenger 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 75. 77. 76.8 71.1 6. 65.1 71.3 76.1 74.3 75.1 74.0 77.0 8.0 8.3 78.8 7.1 56.7 65.3 76.5 74.6 73.1 74.3 71.8 75.3 77.8 77.6 73.0 71.8 61.9 65.7 74.1 (Million) 8,000 6,000 4,000,000 Operating Statistics Year 009 Year 010 Year 011 (%) 100.0 (E) 80.0 60.0 40.0 0.0 ASK RPK C/F YoY (Month) YoY (Quarter) YoY (Year) Jul'11(E) Jul'10 YoY% Q'11 Q'10 YoY% Year'10 Year'09 YoY% MASK 6,74 6,370 5.8 19,17 17,97 6.7 75,600 7,031 5.0 MRPK 4,993 4,875.4 1,737 11,605 9.8 55,676 5,593 5.9 Cabin factor% 74.1 76.5 3. 66.4 64.6.9 73.6 73.0 0.9 55 Investor Relations Department
Operating Statistics Freight (Million) 40. 44.5 49.7 46.1 47.9 51.8 50.6 5.4 58.8 59.3 61.8 58.3 54.4 60.5 63.9 6.4 66.9 65.0 61.3 60.4 6. 6.5 60.8 57.9 53.7 56.6 60.1 58.0 57.8 57.7 57.7 600 400 00 Year 009 Year 010 Year 011 (%) 80.0 60.0 40.0 0.0 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) ADTK RFTK F/F YoY (Month) YoY (Quarter) YoY (Year) Jul'11(E) Jul'10 YoY% Q'11 Q'10 YoY% Year'10 Year'09 YoY% MADTK 4 408 3.4 1,50 1,15 11.1 4,708 4,016 17. MRFTK 43 50.8 73 79 0.8,895,09 38.4 Freight Factor% 57.7 61.3 5.8 57.8 64.8 10.7 61.5 5.1 18.0 56 Investor Relations Department
Operating Statistics Passenger Yield (Including Fuel Surcharge) (THB/Km) Passenger Yield (Excluding Fuel Surcharge) (THB/Km)..6.4.05.16.4.08.07.36.13.3.41 1.90.03.35 1.81 1.99.0 1.9.01.05.11 1.85 1.97.0.1.14.16.35.9.3.44.1.4.30.45.7.40.49.63.54.54.70.56.68.78.44.55.63.51.56.7.73.87.64.60.8.78.84.7 3.00.50.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 009 Year 010 Year 011 (E) (E).50.00 1.50 1.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 009 Year 010 Year 011 57 Investor Relations Department
Operating Statistics Freight Yield (Including Fuel Surcharge) Freight Yield (Excluding Fuel Surcharge) (THB/Km) 7.33 7.08 7.01 6.91 6.94 6.6 6.96 7.0 7.13 7.44 6.77 7.47 7.51 6.86 6.67 7.18 6.65 (E) 6.98 7.30 6.69 6.89 7.01 7.37 7.08 7.1 7.48 7.4 7.53 7.01 7.7 9.74 9.66 9.70 8.71 9.08 9.45 8.0 9.10 9.85 8.50 9.30 9.65 9.17 9.89 10.09 8.19 9.65 9.78 8.90 9.53 8.61 9.30 8.88 9.84 9.04 9.37 9.35 9.65 9.43 9.44 (E) (THB/Km) 10.00 9.00 8.00 7.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 009 Year 010 Year 011 8.00 7.00 6.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 009 Year 010 Year 011 58 Investor Relations Department