THAI AIRWAYS INTERNATIONAL PLC.

Transcription

1 THAI AIRWAYS INTERNATIONAL PLC. 3Q/2011 Nov 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 equity shares. 2 Investor Relations Department

3 Snap Shot 2010 MTHB USD mn Equiv. % Change YoY Assets 293,760 9, Total Revenue 180,588 6, Net Profit 15, Million % Change YoY Passengers carried (# of people) 18.2/annum 1.7 Available Seat Kilometers (ASK) 55, Freight Transport (tons) /annum Available Ton Kilometer (ATK) 2, Current # of Aircraft 89* Destinations Served 72 Countries Served 35 *Excluding 6 B leased to Nok Air 3 Investor Relations Department

4 Company Facts Major Shareholders Major Shareholders HSBC (SINGAPORE) NOMINEES PTE LTD, 0.87% NORBAX INC., 13, 1.05% THE BANK OF NEW YORK MELLON, 1.33% GOVERNMENT SAVING BANK 2.39% NVDR, 4.57% STATE STREET BANK AND TRUST COMPANY, 0.72% VAYUPAK (KTAM), 7.56% OTHERS, 22.92% VAYUPAK (MFC), 7.56% MINISTRY OF FINANCE, 51.03% As of Mar 11 Thailand s National Flag Carrier 51% directly, 68% indirectly owned by the Royal Thai Government Market Capitalization: 1,260 MUSD (As of 4 Oct 2011) 4 Investor Relations Department

5 Company Facts Largest Facilities at Suvarnabhumi Airport Operations Center Covers 35,000 sq. m. area including Crew Terminal, Crew Center and Ground & Flight Operations Center Catering Services Covers 97,000 sq. m. area with capacity of 57,000 meals per day, HACCP Certified Cargo & Mail Handling and Transportation Services Covers 120,000 sq. m. area, with capacity of over 1 million tons/year Aircraft Maintenance & Technical Services Covers 24,300 sq. m. area, largest maintenance hangar in Southeast Asia for A380 Ground Customer Services Covers 16,000 sq. m. area, provides customers with a full range of customer services and facilities Ground Support Equipment Services Covers 28,000 sq. m. area, features maintenance shop under one roof 5 Investor Relations Department

6 Customer Breakdown By Nationality By Purpose of trip Others 48% European 22% Thai 30% Personal Trip 15% Business 39% Holiday 46% (As of 3Q/2011) 6 Investor Relations Department

7 Factors Affecting Aviation Business Factors of Concern Natural Disasters Rate of Economic Growth Rapid Rise in Fuel Price FX Fluctuation EU Carbon Emissions Guideline Competition from LCCs / Traditional Airlines/ New Full Network Carriers THAI is taking precautionary actions to mitigate all risk factors ASEAN Open Sky and Liberalization Policy Health Availability of Aircraft Financing Availability of New Aircraft Acquisition, Aging Fleet & Seat New Aircraft Technology /Trend Global Politics 7 Investor Relations Department

8 Operating Summary Units 9M/11 9M/10 % Change Passenger Production MASK 58,580 55, Passenger Traffic MRPK 42,299 41, Cabin Factor % Passenger Yield THB/km Freight Production MADTK 4,122 3, Freight Traffic MRFTK 2,334 2, Freight Factor % Freight Yield THB/km Avg. Fuel Cost USD/gallon (E) Note : Yield includes fuel surcharge 8 Investor Relations Department

9 Operating Summary Units JanOct 11 JanOct 10 % Change Passenger Production MASK 65,369 62, Passenger Traffic MRPK 46,768 45, Cabin Factor % Passenger Yield THB/km JanSep 2.73 JanSep Freight Production MADTK 4,122 3, Freight Traffic MRFTK 2,334 2, Freight Factor % Freight Yield THB/km JanSep 9.86 JanSep Avg. Fuel Cost USD/gallon (E) Note : Yield includes fuel surcharge 9 Investor Relations Department

10 Financial Performance EBIT, EBITDA and Net Profit (3Q/2010 & 3Q/2011) Units : THB mn Factors Impact slow down in 3Q/11 Results Impact from European and US economies Fuel cost is approximately 42%, higher in 3Q/2011 over 3Q/ % increase in # of PAX carried Fuel surcharge coverage less than 100% from weak demand EBIT EBITDA NET PROFIT NET PROFIT (Exclude FX) FX gain THB 2,299 mn. 10 Investor Relations Department

11 Financial Performance EBIT, EBITDA and Net Profit (9M/10 & 9M/11) Units : THB mn Factors Impacting 9M/11 Results Impact from Middle east unrest, Japan Earthquake & European economic weakness Fuel cost is approximately 41% higher YoY 4.2% increase in # of PAX carried EBIT EBITDA NET PROFIT NET PROFIT (Exclude FX) Fuel surcharge coverage less than 100% from weak demand FX loss THB 3,325 mn. 11 Investor Relations Department

12 Rising Fuel Cost 12 Investor Relations Department

13 Revenue By Class By Area Total revenue = 115,385,775 MTHB 13 Investor Relations Department

14 # of PAX By Class By Area Total passengers in 2011 = 13.9 mn. Total passengers in 2010 = 13.3 mn. 14 Investor Relations Department

15 Competitors Have Increased Significantly Traditional full service airlines Newly established full service airlines Low Cost Carriers 15 Investor Relations Department

16 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

17 New Strong Competitors from Middle East Middle East HUB Emirates Qatar Etihad 17 Investor Relations Department

18 Competitors Fleet Expansion Plan Number Competitors Fleet and Expansion Plan Awaiting delivery Existing A Emirates Qatar Etihad Singapore Cathay Malaysia Vietnam THAI Existing/Awaiting delivery 15/75 /5 /10 11/8 /6 /4 /6 18 Investor Relations Department

19 Overarching Strategic Plan Ensure strength and stability Strengthen internal organization Build operational stability Build strategic competitiveness Seek growth opportunities Emphasize Customer Value Ensure Competitiveness Ensure Dynamism 19 Investor Relations Department

20 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 20 Investor Relations Department

21 Strategy to close THAI s business gap THAI Smile to complement THAI s product offering Brand positioning matrix for THAI and affiliated companies Product Offering Premium full service Premium 3 class Premium 2 class Premium regional (wide body) 2 Class 2 Class Launch July 2012 No frills THAI LCC Stage length small* big connecting Regional Intercontinental Domestic Note: * NOK focuses on DMK only; ** Possibilities surrounding expanding fleet to include widebody aircraft will be evaluated as opportunities arise 21 Investor Relations Department

22 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 LOW to MEDIUM Domestic focus with some added value and maintaining very low cost 22 Investor Relations Department

23 THAI Smile s Strategies THAI Smile s first flight will commence on July 1st, 2012 after receiving first brand new aircraft in June 2012 Brand new narrow body aircraft # of aircraft Positioning Differentiation Character Value Affordable Light Premium Good Price High Value BRAND Trendy Friendly Worthy Reliable Enjoyable Valuable Fleet Plan (2012F18F) Investor Relations Department

24 Competition for THAI Smile Lowcost carriers Regional FSC Fullservice carriers 24 Investor Relations Department

25 Building Connectivity Strength THAI is developing 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 Three tier product strategy to strengthen regional connectivity 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 25 Investor Relations Department

26 Building Customer Value Ongoing enhancement and improvement in products and services at all touch points and the use of KPIs to ensure consistent quality service 26 Investor Relations Department

27 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 27 Investor Relations Department

28 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 28 Investor Relations Department

29 Statistic on Internet Checkin Ticket Sales Via Internet Checkin via Internet % Year 2011 Year % Year 2011 Year Year Year Jan Feb Mar Apr May 0 Jun Jul Aug Sep Oct Nov DEC 1 Jan Feb Mar Apr May 0 Jun Jul Aug Sep Oct Nov Dec 29 Investor Relations Department

30 Statistic on use of EServices # of PAX Checkin via Mobile ( 3,500 3,000 3,310 3,088 2,500 2,309 2,321 2,368 2,000 1,813 1,500 1,136 1,300 1, Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 Aug11 30 Investor Relations Department

31 Awards and Accolades Achieved Top 5 in the World and Targeting Top 3 in Asia The World s Top Ten Airlines Skytrax Skytrax 2011 Best Airline Seat Economy Class Best On Board Catering Economy Class Business Traveler s Award nd for Best Airline 2nd for Best AsiaPacific Airline 3rd for Best Business Class 3rd for Best Economy Class 2nd for Best FrequentFlyer Programme 3rd for Best Airline Lounge in AsiaPacific Norwegian Grand Travel Award 2011 Best Intercontinental Airline TTG Award 2011 Best Business Class Best Southeast Asian carrier Skytrax 2010 Best Airline Lounge First Class Best Airport Services Source: Skytrax Go Asia Award Best Asian carrier 31 Investor Relations Department

32 Current Fleet Current Fleet: 89 Aircraft 51% of O 9% of OL 40% of FL O=Owned OL=Operating lease FL=Financial lease (Note: Approximately) Aircraft Type A Exc. 2 of ATR72 4 of leased to Nok First Business Premium Economy Economy Total 36R1 6 N.A. 46 N.A N.A. 28 N.A A N.A O, 3 FL A N.A FL A N.A. 42 N.A N.A. 36 N.A B N.A. 12 N.A FL, 3 OL B N.A N.A B N.A. 30 N.A O, 2 OL B777200ER 77E1 6 N.A. 30 N.A FL B Version # of Aircraft # of Seat N.A. 34 N.A TKE 1 N.A. 34 N.A Financial Method B777300ER N.A OL Total ,528 4, O, 38 FL, 12 OL 11 O 10 O, 10 FL,2 OL 11 O, 5 FL 6 FL (Note: N.A.. = Not available) 32 Investor Relations Department

33 Aircraft Utilization Aircraft Utilization Hours / Day / Aircraft Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Investor Relations Department

34 Aircraft Delivery Plan 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 B (OL) 2 B (OL) 2 (OL) 6 A320 4 (OL) 2 (OL) 2 (FL) 3 (FL) 11 TOTAL Note : OL = Operating lease FL = Financial lease 34 Investor Relations Department

35 Phase Out Plan PHASEOUT PLAN TOTAL B * B777300ER (Jet Airways) 5 5 A A B A A B ** 1** ATR TOTAL Note : * To be converted to cargo planes ** Return from Nok Air 35 Investor Relations Department

36 Fleet Strategy Through TOTAL # of Aircraft Total Seats in operation 26,691 28,249 29,570 30,972 31,581 32,391 33,660 Seat Growth 5.8% 5.8% 3.8% 8.7% 2.0% 2.6% 3.9% 4.7% Age Fleet Age Investor Relations Department

37 Upgrades and Retrofit Schedule # of Aircraft First Business Economy Tentative Completion B No Retrofitted Retrofitted Jun. Dec. 2011* (Four have been completed) B No Apr.Oct B No. 1 1 Retrofitted Dec * B No Retrofitted Mar. Dec. 2012* * Note: Completion of retrofit has been postponed due to Donmuang but will likely be completed by Investor Relations Department

38 Aircraft lease to Supplement Capacity Leased 3 B777300ER aircraft from Jet Airways for 3 years Another 2 B777300ER 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 38 Investor Relations Department

39 New Aircraft A330 & A380 New Airbus A Royal First class New Airbus A Royal Silk Class Royal Silk Class Economy Class Economy Class 39 Investor Relations Department

40 New InFlight Entertainment Interactive Full Audio Video on Demand (AVOD) in all classes* (* Except A330300, A and B737400) Entertainment Movies: Movies: titles titles Short Short program: program: programs programs CD CD Album: Album: albums albums Games: Games: games games USB USB plug plug and and play play Onboard Services EMeal EMeal Menu Menu EDuty EDuty Free Free Shopping Shopping EMagazine EMagazine Seat Seat Chat Chat EDuty Free Shopping EMeal Menu Connectivity Voice Voice Call Call SMS SMS Text Text Messaging Messaging GPRS GPRS Internet Internet Access Access Infotainment About About THAI THAI Airport Airport Information Information Window Window on on Thailand Thailand EDuty Free Shopping Travel Travel Destination Destination Information Information 40 Investor Relations Department

41 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 41 Investor Relations Department

42 2011 Route Network Changes Increase direct flights from BKK to secondary market and increasing over all connectivity but will adjust capacity to reflect demand Winter Program Suspension routes New Flights Opening BKKBrussel v.v. BKKBelgium v.v. (As from 17NOV11) 3 Flights / Week 3 Flights / Week Route Adjustment BKKPhuketPerth v.v. BKKTokyoPhuket BKKChiang MaiPhuketBKK Additional Frequency BKKOslo v.v. Effective Oct. 30, 2011 Mar. 24, 2012 HKTPerth v.v. BKKNarita v.v. BKKChiang MaiPhuket v.v. 5 to 7 Flights / Week BKKCopenhagenPhuket (As from 11NOV11) BKKOsaka v.v. (As from 16NOV11) HKTSeoul v.v. BKKSingapore v.v. Flight Resumption BKKBeijing v.v. BKKKathmandu v.v. 3 Flights / Week 3 Flights / Week 3 Flights / Week 7 Flights / Week 4 Flights / Week 3 Flights / Week BKKPerth v.v. BKKXiamen v.v. BKKChengdu v.v. BKKNagoya v.v. (As from 01JAN12) BKKMumbai v.v. BKKGayaVaranasi v.v. (30OCT 31DEC11) 4 to 7 Flights / Week 3 to 4 Flights / Week 4 to 5 Flights / Week 10 to 11 Flights / Week 6 to 13 Flights / Week 4 to 7 Flights / Week BKKHat Yai v.v. 7 Flights / Week Effective Oct. 30, Investor Relations Department

43 THAI is committed to achieving the 20,000 MTHB cost reduction target agreed to with the Ministry of Finance through 2012 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 better mange reserve fuel to improve cost management Marketing expense management by promoting through direct sales channels and negotiate to reduce reservation fees. Reducing operating expense through reviewing handling agreements and negotiating with local and overseas handling companies to reduce handling fee, reduce and implement flexible crew onboard, control and reduce crew route expense. Increase revenue by dynamic fare adjustment, dynamic fuel surcharge management, optimize the use of Revenue Management System (RMS) and increase direct sales via internet, mobile 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 43 Investor Relations Department

44 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 44 Investor Relations Department

45 Fuel Management Hedging combined with fuel surcharge greatly mitigates fuel price fluctuation risk Monthly fuel hedging % of consumption by month 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 July11 Aug11 Sep11 Oct11 57% 65% 62% 56% 51% 51% 61% 65% 69% 72% 72% 63% 82% 74% 123% 131% 116% 102% 91% 78% 118% 112% 102% 110% 104% 98% 94% 116% 106% 111% 103% 109% 101% 102% 98% 87% 88% 77% 95% 95% 97% 92% 94% 163% 143% 199% 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 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 0% 0% 0% 0% 3% 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% 23% 23% 23% 51% 51% 51% 50% 50% 56% 69% 69% 69% 69% 69% 69% 59% 59% 59% 56% 56% 56% 80% 80% 80% 80% 80% 80% 45 Investor Relations Department

46 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 46 Investor Relations Department

47 Improvements in Dynamism Project Uphold the principles of Good Corporate Governance Changes Made Ensuring transparency in all areas of operations Whistle Blower Policy Expedite decision making Invest in IT Performancebased Culture Reduce steps to improve decision process IT capability improves not only efficiency, decision making but also enhances customer satisfaction Senior management having clear cut KPIs and compensation is measured accordingly Pushing KPI s down the management rungs Geared for BUs to enhance efficiency in decision process & management Signed Service Level Agreements Structural change to enhance flexibility but also responsibility 47 Investor Relations Department

48 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 MTHB In 2008 Put in reserve 4,290 In 2010 Wrote back 1,783 Outstanding in reserve 2, Investor Relations Department

49 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 5 Stable Capital Structure Net Interest Bearing Debt to Equity (Times) 8,000 MTHB Debenture issued in in May May 13, 13, Q1/11 Q2/11 Q3/11 49 Investor Relations Department

50 Price Volatility from External Events Share price peaked at THB upon being inducted back into the MSCI* Cash flow crisis Drafted & Implemented strategies under TG 100 Success recapitalization Pressure from high fuel cost Implemented recovery plan Fuel price Dec Apr. 11 European economic crisis *MSCI = Morgan Stanley Capital International 50 Investor Relations Department

51 Financial Performance 51 Investor Relations Department

52 Financial Performance Performance Summary (3Q/2010 & 3Q/2011) THAI and its subsidiary JulSep (Units : MTHB) Total Revenue 49,961 45,414 Total Expense 48,201 41,465 Foreign currency exchange (Gain) 2,299 2,773 Share of profit of investments by the equity method 57 Profit (Loss) before finance costs, income tax 4,059 1,233 Financial Cost 1,467 1,314 Net tax expense (income) Net profits (loss) 2, Investor Relations Department

53 Operating / Total Revenue (3Q/2010 & 3Q/2011) Financial Performance Operating Revenue Total Revenue Units : MTHB *Operating Rev. up 10.74% , , % to Revenue % Change Tot. Rev. Passenger Freight Mail ,207 Other activities Interest income Q3'10 Q3'11 Passenger Freight Mail Other activities Interest income Other income Other income Total Income *Excludes Interest & Other income Operating revenue 3Q/10 = 44,433 MTHB Operating revenue 3Q/11 = 49,204 MTHB Total revenue 3Q/10 = 45,414 MTHB Total revenue 3Q/11 = 49,961 MTHB 53 Investor Relations Department

54 50,000 40,000 30,000 20,000 10,000 Operating / Total Expense (3Q/2010 & 3Q/2011) Units : MTHB 1,240 4,993 2,052 1,189 2,328 4,505 13,941 Operating Expense **Operating Exp. Up 16.42% 1,237 5,113 3,043 1,373 2,751 5,137 20,013 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 ,129 6,470 Q3'10 Q3'11 Personnel Fuel and Oil Flight Service Expense Inventory&Supply Crew Expense Aircraft Maintenance Depreciation Lease of a/c ** Excludes FX & Impairment losses Operating expense 3Q/10 = 41,019 MTHB Operating expense 3Q/11 = 47,755 MTHB Depreciation/amortisation Aircraft lease/spare parts Other expense Total Expense Total expense 3Q/10 = 44,238MTHB Total expense 3Q/11 = 45,902MTHB 54 Investor Relations Department

55 Financial Performance Ratios 3Q/2010 & 3Q/2011 Ratios units 3Q/10 3Q/11 Earnings Per Share (THB) EBIT (MTHB) 3, EBITDA (MTHB) 8, ,482.0 EBITDAR (MTHB) 9, ,719.0 Operating Profit Margin (%) Net Profit Margin (%) EBITDA Margin (%) Interest Bearing Debt to Equity (Times) Net Interest Bearing Debt to Equity (Times) 1.4* 1.7* Interest Coverage (Times) * Total loan Cash and Cash Equivalent / Equity 55 Investor Relations Department

56 Performance Summary (9M/2010 & 9M/2011) THAI and its subsidiary Financial Performance JanSep (Units : MTHB) Total Revenue 147, ,854 Total Expense 144, ,570 Foreign currency exchange (Gain) 3,325 7,317 Share of profit of investments by the equity method Profit (Loss) before finance costs, income tax ,827 Financial Cost 4,195 3,922 Net tax expense (income) Net profits (loss) 4,779 11, Investor Relations Department

57 Operating / Total Revenue (9M/2010 & 9M/2011) Financial Performance Units : MTHB 160, , , , , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,590 2,641 20, ,898 9M'10 Operating Revenue *Operating Rev. up 9.81% 611 1,978 20, ,629 9M' ,229 Passenger Freight Mail Other activities Interest income Other income 625 Total Revenue % to Revenue % Change Tot. Rev. Passenger Freight Mail Other activities Interest income Other income Total Income *Excludes Interest & Other income Operating revenue 9M/10 = 132,106 MTHB Operating revenue 9M/11 = 145,069 MTHB Total revenue 9M/10 = 134,854 MTHB Total revenue 9M/11 = 147,371 MTHB 57 Investor Relations Department

58 160, , , , , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Operating / Total Expense (9M/2010 & 9M/2011) Units : MTHB 15,326 6,835 3,774 6,772 14,013 42,033 2,748 4,148 14,916 8,623 4,083 7,119 15,333 56,894 22,459 22,898 9M'10 9M'11 Personnel Fuel and Oil Flight Service Expense Inventory&Supply Crew Expense Aircraft Maintenance Depreciation Operating Expense **Operating Exp. Up 15.04% Lease of a/c ** Excludes FX & Impairment losses Operating expense 9M/10 = 125,004 MTHB Operating expense 9M/11 = 143,812MTHB 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 9M/10 = 118,253 MTHB Total expense 9M/11 = 148,195 MTHB 58 Investor Relations Department

59 Financial Performance Ratios 9M/2010 & 9M/2011 Ratios units 9M/10 9M/11 Earnings Per Share (THB) EBIT (MTHB) 7, EBITDA (MTHB) 22,658 15,257 EBITDAR (MTHB) 25,406 19,404 Operating Profit Margin (%) Net Profit Margin (%) EBITDA Margin (%) Interest Bearing Debt to Equity (Times) Net Interest Bearing Debt to Equity (Times) 1.4* 1.7* Interest Coverage (Times) * Total loan Cash and Cash Equivalent / Equity 59 Investor Relations Department

60 Foreign Currency Exposure (Year 2010) 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 Financial Performance Unit : MTHB 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 60 Investor Relations Department

61 Financial Performance (MTHB) 40,000 TG continues to be net long Euro & Yen USD EUR JPY THB 30,000 20,000 10, ,000 20,000 30,000 40,000 Actual Forecast 61 Investor Relations Department

62 Financial Performance Proportion of Fixed and Float (As of Oct. 2011) Before Swap After Swap Fixed 30% Float 70% Fixed 48% Float 52% Percentage of TOTAL (TOTAL = 134,560 MTHB) Percentage of TOTAL (TOTAL = 134,487 MTHB) Cost of funding = 3.79% Cost of funding = 3.86% 62 Investor Relations Department

63 Financial Performance Proportion of Total Borrowing (As of Oct. 2011) Before Swap After Swap Medium Term Note, 1% Debenture, Financial Lease, 21% 43% Term Loan, 35% Medium Term Note, 1% Debenture, Financial Lease, 21% 43% Term Loan, 35% Percentage of Total (Total of on Balance Sheet = 134,560 MTHB) Percentage of Total (Total of on Balance Sheet = 134,487 MTHB) 63 Investor Relations Department

64 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 64 Investor Relations Department

65 Passenger from / to Thailand Forecast Industry Outlook Thailand Passengers (Millions) IATA International Passenger Forecast Actual 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% Estimate International 5.5 % Regional 5.5 % Intercont. 5.5 % Domestic 4.2 % 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 65 Investor Relations Department

66 Appendix 66 Investor Relations Department

67 Operating Statistics Passengers Carried Q3/11 = 4.8 million (increased 8.1% YoY) ( 000) 7,000 5,000 4,684 Year 2009 Year ,589 5,088 5,167 4,114 4,414 3,662 4,833 4,923 Year ,201 4,771 3,000 1,000 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Freight Carried Q3/11 = 168,199 tons (decreased 6.7% 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 Q3'11 67 Investor Relations Department

68 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 Aug11 Sep11 Oct11 Nov (Million) 8,000 6,000 4,000 2,000 Operating Statistics Year 2009 Year 2010 Year 2011 (%) (E) ASK RPK C/F YoY (Month) YoY (Quarter) YoY (Year to Date) Nov'11(E) Nov'10 YoY% Q3'11 Q3'10 YoY% Sep'11 Sep'10 YoY% MASK 6,379 6, ,837 18, ,580 55, MRPK 3,811 4, ,681 14, ,299 41, Cabin factor% Investor Relations Department

69 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 Nov (Million) Operating Statistics Freight Year 2009 Year 2010 Year 2011 (%) 80.0 (E) ADTK RFTK F/F YoY (Month) YoY (Quarter) YoY (Year to Date) Nov'11 (E) Nov'10 YoY% Q3'11 Q3'10 YoY% Sep'11 Sep'10 YoY% MADTK ,224 1, ,707 3, MRFTK ,096 2, Freight Factor% Investor Relations Department

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

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