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Analyst Meeting 1Q2018
Information contained in our presentation is intended solely for your reference.
Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company.
In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance.
These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct.
Actual results may differ materially from those projected.
Disclaimer2
Market Overview : International Visitor Arrival to Thailand
International Visitor Arrival to Thailand(All Modes of Transportation)
Unit: Million
International Visitor Arrival Comparison(Department of Tourism vs BA)
*Remarks : IVA = International Visitor ArrivalSource : Department of Tourism
IVA* to Thailand(All Modes of
Transportation)
Bangkok
Airways
International POS +15% +8%
%Change
1Q2017 vs 1Q2018Region
9.0 9.2 10.6
32.635.4
37.9
1Q16 1Q17 1Q18 Y2016 Y2017 Y2018E
+2% +15%
+9% +7%
3
Operating Statistics 1Q17 vs 1Q184
1Q2018 1,759 +8% 1Q2018 3.95 +6% 1Q2018 7,831 +5%
1Q2017 1,623 1Q2017 3.74 1Q2017 7,469
1Q2018 1,317 +7% 1Q2018 3.43 +2% 1Q2018 2,079.00 +4%
1Q2017 1,232 1Q2017 3.36 1Q2017 1,991.00
1Q2018 1,722 -0.3% 1Q2018 0.65 +71% 1Q2018 719 +27%
1Q2017 1,728 1Q2017 0.38 1Q2017 565
Passenger (Thousand) RASK (THB/ASK)
CASK (THB/ASK)
Unit Margin (THB/ASK)ASK (Million Kilometers)
Total Revenue (MB)
RPK (Million Kilometers)
Net Profit (MB)
EBITDAR (MB)
3 Airport Related Services at BKK Airport15
BAC : Catering in Phuket Gained More Customer
Key Highlight : 1Q2018
BA holds 90% in BAC
No. of airline customer = 23 (-1YoY)
Meal Uplift : 2.5 Million (-17%YoY)
AVG Meal per day : 27,226 Meals (-20%YoY)
BAC-BKK Major Customers :
BAC 25%
Others 75%
Market Share
6
Developments :
1. BAC Phuket – No. of airline customers = 9 (+1)
2. Gourmet Primo – No. of customers = 8 (+2)
3. BAC Chiang Mai – Expected to operate in 4Q2018
BAC-Phuket Customers : Gourmet Primo Customers :Lounge Bakery
443 363
1,456 1,551
133 111
419 396
91 74276
95250 215
30.1% 30.6%28.8%
25.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1Q17 1Q18 Y2016 Y2017
Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)
BFS Ground : Main Operating Revenue Increased
Key Highlight : 1Q2018
BA holds 98.88% in BFS Ground
No. of customer = 75 (+4YoY)
The first & only ISAGO certified operator in BKK airport
No. of flights serviced : 18,579 Flights (+6%YoY)
Revenue +5%YoY
Net Profit –11%YoY
Major Customers :
New Customers in 1Q2018 :
BFS Ground
56%
Other 44%
Market Share
7
648
147 139405 404
95 85255 254201 285
22.9%20.4%
17.3%16.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1Q17 1Q18 Y2016 Y2017
Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)
BFS Cargo : Strong Profit from New Services & Pricing Adjustment
Key Highlight : 1Q2018
BA holds 49% in BFS Cargo
No. of customer = 67 (-1YoY)
The first & only ISAGO certified operator in BKK airport
Revenue +9%YoY
Net Profit +22%YoY
Major Customers :
New Customers in 1Q2018 :
BFS Cargo 49%
Other 51%
Market Share
8
453 493
1,7021,937
208 250
773925
144 176
527688
165
465600
45.9%50.6%
46.1%48.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1Q17 1Q18 Y2016 Y2017
Revenue (MB) EBITDA (MB) Net Profit (MB) Dividend Paid (MB) EBITDA Margin (%)
Boutique Airlines29
Even though fare pressure, more passenger and higher revenue
Passenger Revenue
Unit: MB & %Proportion
Key Highlight : All Routes (1Q2018)
Passenger Revenue : +4%YoY
Average Fare : -4%YoY due to high competition (Especially Indochina)
Passenger : +8%YoY
10
Samui Indochina Domestic (excl. Samui) International (Others)
1Q17 1Q18 Y2016 Y2017
49%20%26%5%
6,041
52%18%26%4%
6,311
47%
22%
25%
6%
20,761
49%
19%
26%
20,502
-1%
6%
+4%
International Point of Sale (POS) represent 70% of Passenger Revenue11
Europe + Middle East(Includes Russia)
1Q2018 : 31%
(+15%YoY)
APAC + Australasia(exclude Thailand)
1Q2018 : 26%
(+3%YoY)
Thailand Only
1Q2018 : 21%
(+3%YoY)
www.bangkokair.com
1Q2018 : 16%
(-11%YoY)
>70% Booking from Abroad
Top 3 Europe POS (1Q2018)
Germany
France
UK
Top 3 Asia POS (1Q2018)
China
Cambodia
Hong Kong
Reach more Passengers through Codeshare Partners
% of Passenger Revenue (Codeshare & Interline)
Unit: %
12
New Codeshare Partners in 1Q2018
Non Alliance
New Codeshare Partner in May 2018
“Lao Airlines”
Hubs: Wattay International Airport, Vientiane
Fleet size: 11
No. of Destinations: 20
Alliance: None
70+ Interline Partners
Top Interline Partners (Passenger Revenue Contribution)
24% 27%23% 23%
1Q17 1Q18 Y2016 Y2017
Non Alliance
Non Alliance
CurrentCodeshare Partners :
26 Airlines
Tapped Chinese FITs through Direct Flights & Interline Partners
*Source: Department of Tourism
BA’s direct flights from Samui to China :
Samui-Chengdu started in July 2016
Samui-Guangzhou started in January 2017
Samui-Chongqing started in July 2017
Potential growth by increasing both passenger &
revenue from China POS, while Market slightly increased
13
Interline Partners from China
%Growth 1Q2017 vs 1Q2018
Chinese Visitors to Thailand* +30%
Bangkok Airways (China POS) +58%
1Q2017 1Q2018
7% 9%
% Passenger Revenue :
POS in China
Network Plan to Capture Demand & seek for Unfound Destination
Y2018
New Route Chiang Mai-Hanoi 7 Flights Weekly (Mar 2018)
Phuket-Yangon 3 Flights Weekly (November 2018)
AddFrequency
Bangkok-Phu Quoc 4 5 Flights Weekly (February 2018)
Bangkok-Vientiane 7 14 Flights Weekly (March 2018)
15
Fleet Status & Plan
Airbus A319 Airbus A320 ATR72-600 ATR72-500
FL = Financial LeaseOL = Operating Lease
16
34
38 3840
ATR 72-600 7 9 9 11
ATR 72-500 6 6 6 4
A320 9 9 9 9
A319 12 14 14 16
Y2016 Y2017 May2018 Y2018E
6-Owned
9-FL
9-OL
14-OL
Samui Routes Dominated Advanced Bookings
Advanced Booking Traveling within 3Q2018 : Segmented by Region
Samui-DOM
45%
Cambodia
6%
Myanmar
4%
Vietnam
4%
Samui-INTL
9%Laos
2%
Samui54%
Indochina17%
Other-Domestic
26%
Other-International3%
+11%YoY
17
Own & Operate 3 Resort-Style Airports3
Samui Airport Update :
Approved to operate 50 flights per day*
Submitted EIA report to Office of Natural Resources &
Environmental Policy and Planning for 70+ flights approval
Create Strategic Route Network Through Boutiques Airports
Other Airlines AVG Flight/Day
2
2
Scheduled Charter 1
*Approved by CAAT in November 2014
Samui Passengers (All Airlines)Unit: Thousand
Sukhothai PassengersUnit: Thousand
Trat Passengers
Unit: Thousand
18
AVG Flight/Day Y2016 Y2017 2018E
All Airlines 40 41 42
BA only 34 36 37
718 804
2,554 2,634
1Q17 1Q18 Y2016 Y2017
+12%
+3%
22 23
7482
1Q17 1Q18 Y2016 Y2017
+4%
+11%
31 32
91 93
1Q17 1Q18 Y2016 Y2017
+3%
+3%
New Development – Subject to Regulatory Approval
New Aircraft Maintenance Facility at Sukhothai Airport : Expected to start construction in 3Q2018
New Airport Development* in Domestic & International
New Catering Facility at Chiang Mai Airport (Expected Y2018)
Samui Renovation Project* : Delayed due to changes of project plan
19
*Remark: Subject to regulatory approval
Financial Highlight
Financial Overview
Revenue
EBITDAR & Net Profit
Unit: MB & EBITDAR Margin (%)
Major Expenses (% of Total Expense)
Unit: %Unit: MB
21
5,923 6,222
20,431 20,249983 1,043
3,415 3,848
0
1,738
563 566
2,9202,659
1Q17 1Q18 Y2016 Y2017
Passenger Sales & Services Gain on Investment Others
7,469 7,831
+5%
26,76628,493
+6%
17% 17% 13% 16%
11% 15%13% 12%
9% 6%8% 8%
14% 12% 14% 13%
13% 12% 14% 13%
36% 38% 38% 38%
1Q17 1Q18 Y2016 Y2017
Fuel AC Maintenance AC Lease Passenger Service Salary & Wages Others
1,991 2,079
6,570
4,283
565 719 1,837
846*
26.9% 26.6% 25.3%16.3%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
1Q17 1Q18 Y2016 Y2017
EBITDAR Net Profit EBITDAR Margin *Gain on Investment 1,738 (one off)**Additional Corporate Income Tax (one off)
506**
RASK vs CASK & Unit Margin
Others
Fuel
RASK (THB per ASK)
CASK(THB per ASK)
Salary & Wages
Maintenance
Cost per ASK (1Q2017 vs 1Q2018)
Fuel : +3%
AC Lease : -33%
Maintenance : +42%
Passenger Service : -10%
Unit MarginRASK-CASK
(THB per ASK)
22
Passenger Service
3.74 3.95 3.65 3.34
1Q17 1Q18 Y2016 Y2017
3.36 3.43 3.33 3.43
1Q17 1Q18 Y2016 Y2017
0.470.660.420.54
0.470.670.600.48
1.27 1.21
0.520.500.480.531.30
0.50
0.63
0.480.511.31
0.38 0.520.33
(0.09)
1Q17 1Q18 Y2016 Y2017
Effective Fuel Hedging
Hedging Policy50-70% of Fuel Consumption
*Indicative price provided by PTT as of 25th April 2018
24
1Q 2Q 3Q
Hedge Ratio 69% 64% 30%
Average Hedge Cost 66 70 66
Average Hedge Cost
Average Effective Cost 70 73 74
Average Effective Cost
BA2018
68
72
Boutique Airline
• Lounges for all passengers
• Meals on board
• Unique network covering 25+ tourist destinations
Own & Operate 3 Resort Style Airports
• Samui
• Sukhothai
• Trat
3 Airport Related Services at BKK Airport
• Catering Service
• Ramp & Ground Service
• Cargo Terminal
Strategic Investment
• 7.25% in BDMS
• 33.03% in SPF
Appendix : 4 Key Components to Support Sustainable Growth 25
