Thai Tourism Day by BLS - listed...
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Thai Tourism Day by BLS 29 October 2014
Transcript of Thai Tourism Day by BLS - listed...
Thai Tourism Day by BLS29 October 2014
DisclaimerThe presentation is dated the day it is given. The delivery of this presentation shall not,under any circumstances, create any implication that there has been no change in theaffairs of the Company since such date. The third party information and statistical datain this presentation have been obtained from sources the Company believes to bereliable but in no way are warranted by the Company as to accuracy or completeness.This presentation may not contain all material information concerning the Company andthe information set forth in this material is subject to change without notice.
These materials included herein that are not historical facts are forward-lookingstatements. Such forward looking statements involve a number of risks anduncertainties and are subject to change at any time. In the event such risks oruncertainties materialize, AAV’s results could be materially affected. The risks anduncertainties include, but are not limited to, risks associated with the inherentuncertainty of airline travel, seasonality issues, volatile jet fuel prices, world terrorism,perceived safe destination for travel, Government regulation changes and approval,including but not limited to the expected landing rights into new destinations.
This presentation is strictly not to be distributed without the explicit consent ofCompany’s management under any circumstances.
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Why Thai AirAsia…
LEADING LCC in Thailand
SOLID fleet growth
EXTENSIVE Route Network
ANCILLARY growth potential
DISCIPLINEDcost structure
EXPERIENCED management team
Award winning BRAND
Group SYNERGIES
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Began services from Bangkok to Phuket, Chiang Mai and Singapore with two Boeing 737 aircraft
Moved from Don Mueang Airport to Suvarnabhumi Airport
Received first delivery Airbus A320
Launched second hub in Phuket
All new Airbus A320 fleet
Moved back to Don Mueang Airport
Owned first aircraft in our book
Received first delivery of A320 sharklet
Launched Third hub in Chiang Mai
Award The World Best LCC’s OTP
Business Overview• Shareholding structure:
• Thai AirAsia - leading low-cost carrier (“LCC”) in Thailand
• Operates with all new 40 Airbus A320 (9M2014)
• Hubs in Bangkok Phuket and Chiang Mai, operating flights bypassing Bangkok
• Having low cost model with:– Lowest air fares with no free frills– Point-to-point operation within 4 hours– Short turnaround time of 25 minutes– Young, single-class A320 fleet– High aircraft utilization of 11.1 hours (1H2014)– Low distribution costs as 80% sales through Internet– Economies of scale
• Strong partnership with AirAsia Berhad (Bursa ticker “AIRA”)
Key milestones:
2004
2007
2010
2011
2013
AirAsiaBerhad Management
Thai AirAsia(Opco)
Public
100%
45%
54% 46%
55%
AirAsiaInvestment
Asia Aviation(Listco)
2012
2009
2013
2014
Launched Fourth hub in Krabi
Thailand Market
• A decrease in number of tourist by 10%, resulted from the Martial law,
• NCPO agreed to a proposal to waive visa entry fee for Chinese & Taiwanese from 9 Aug to 8 Nov 2014
• Continual increasing trend of LCCs, capturing 38% of the market (both domestic & international)
YTD2014: Tourists by nationality; East Asia & European still driven market
10.1 11.7 11.613.8 14.5 14.6 14.1 15.9
19.122.3
26.5 25.3*
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
Source: Thailand’s Department of Tourism (* Forecasted by The Tourism Council of Thailand on Sep22, 2014)
Continual strong tourists arrivals in the last 11-year
57.466.3
76.188.3
57.9
14.0 17.7 21.9 28.2 22.2
24.4%26.6%
28.8%31.9%
38.3%
2010 2011 2012 2013 YTD2014
All traffics LCC traffics LCC penetration
Growing LCC penetration based on AOT passenger traffics (million)
Source: AOT’s (August)
Source: Immigration Bureau, Police Department. (September)
SARS Tsunami Flood
H1N1 outbreak, red mob invasion
Suvarnabhumiairport closure
Bird flu
PoliticalProtest
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CoupCoup
January ‐ September
Nationality2014 2013 %∆
Number %Share Number %Share 2014/2013East Asia 10,195,835 58.07 12,092,199 61.78 -15.68ASEAN 4,724,574 26.91 5,328,794 27.23 -11.34China 3,097,436 17.64 3,748,703 19.15 -17.37Hong Kong 324,624 1.85 461,848 2.36 -29.71Japan 917,295 5.22 1,152,666 5.89 -20.42Korea 817,441 4.66 956,707 4.89 -14.56Taiwan 274,840 1.57 389,553 1.99 -29.45Others 39,625 0.23 53,928 0.28 -26.52Europe 4,414,733 25.14 4,312,420 22.03 2.37The Americas 788,825 4.49 824,603 4.21 -4.34South Asia 895,018 5.10 1,007,622 5.15 -11.18Oceania 712,176 4.06 745,936 3.81 -4.53Middle East 434,461 2.47 476,024 2.43 -8.73Africa 117,951 0.67 112,881 0.58 4.49Grand Total 17,558,999 100.00 19,571,685 100.00 -10.28
(million)
1H2014 Key Highlights• Soften load factor of 79% (-5 ppts YoY)
• Passengers carried at 5.9 million, up by 19% from prior year, whilecapacity increased by 27% YoY
• World’s Best Low Cost Airline for 6 years straight!
• No. 1 LCC market in both domestic and international1
• Effect on political instability, Average fare soften by 14% YoYto sustain load factor, causing RASK soften by 15% YoY
• Tight control on cost, CASK ex-fuel down by 4% YoY leading to adecrease in CASK by 1% YoY
• Excellent on time performance at 91% (1H2013 : 93%)
• 37 aircraft as at 1H2014 (1H2013 : 29) with utilization 11.1 hours/day
• TAA’s cash balance of Baht 5.0 billion2 (net debt/equity 0.67X)
6Note : 1 As of May 2014 (Resource : AAV, AOT and DCA)
2 Including cash and cash equivalents, S-T investments, Investment in private funds.
6 9 12 12 8 83 8 12
19 22 2735 40 45 50 55 60
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Boeing
Airbus
Fleet Plan
• 40 aircraft as of 9M2014• All A320s with single-class 180 seats
capacity
• Average age of 3 years 5 months(9M2014)
• As of 9M2014 – 28 operating leases– 12 finance leases
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Unit: Aircraft5-year fleet plan:
Confirmed expansion plan:Fleet profile:
• Confirmed 5 new deliveries in FY2014
• 2 more deliveries in 1H2014 • 3 more deliveries in 2H2014
+5 +5+5
+5 +5
Route movements:
Additional frequencies: New destinations:
3Q14 • Chiangmai – Phuket (3rd ) (Jul)
• Bangkok-Khonkaen (4th ) (Aug)
4Q14 • Bangkok – Siem Reap (3rd ) (Oct)
• Chiangmai -Krabi (2nd) (Oct)
• Bangkok – Sakolnakhon (1st,2nd) (Oct)
• Krabi-Guangzhou (1st) (Nov)
• Chiangmai –Surat Thani (1st) (Nov)
Route Network
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As at end of: 3Q2014
No. of routes
- Domestic
- International
45
18
27
No. of daily flights
(Dom:Int’l -> 61:39)
202
Average fare* slightly on sideway
3.0 3.7 4.0 5.06.4
2.02.2 2.9
3.3
4.1
1H13 1H14 2011 2012 2013
Domestic International
5.0
+19% YoY6.9
10.5
5.9
+27% YoY
8.3
1,9381,665
1,942 1,977 1,885
1H13 1H14 2011 2012 2013
-5% YoY-14% YoY
6,0767,488
9,19910,499
12,951
1H13 1H14 2011 2012 2013
+23% YoY
+23% YoY
Operational Highlights
84%79% 80% 82% 83%
1H13 1H14 2011 2012 2013
+1 ppts YoY-5 ppts YoY
Soften load factorRocketing Passengers carriedUnit: Million passengers
Continue expanding ASK Unit: Million Unit: Baht per pax
* Included fuel surcharge 9
0.95 0.91 0.89 0.94 0.95
0.71 0.73 0.71 0.75 0.72
123.60 121.90 124.0 126.7 122.8
1H13 1H14 2011 2012 2013
Maintaining Cost DisciplinedRevenue per ASK (RASK)
1.87
1.59
1.76 1.84 1.81
1H13 1H14 2011 2012 2013
Unit: Baht
Cost per ASK (CASK) and Cost per ASK ex-fuel (CASK ex-fuel)
-2% YoY
-15% YoY
Unit: Baht
1H2014 Cost breakdown
1.641.66 1.60 1.69
CASK ex-fuel
Fuel Cost
Jet (USD/bbl)
-1% YoY
10
SG&A,6%
Fuel,45%
Aircraft lease,15%
Staff,9%
Repair and maintenance,8%
Ramp and airport operation,9%
Guest service and distribution,4%
Dep. & amort.,3%Other,1%
1.67-1% YoY
Ancillaries Enhancement
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1,7262,107 2,627
2,941
3,759
346 356383
354 358
1H13 1H14 2011 2012 2013
Strategies:
• Expanding “Fly-thru” to 116 routes
• Introducing more combos & add-ons purchases
• Adding more travel-related products
• Revamping website for higher ancillaries
conversion
Ancillary revenue (Baht mil.)
Ancillary per pax(Baht)
2014F Looking Forward• 5 additions in 2014, 3 in 2H14 (1H2014: 37 aircraft being 28 OLs vs 9 FLs)
• To see recovery in 2H2014 and achievable 2014F targets of 12.1 mil. paxwith 80% LF (2013: 10.5 mil. pax and 83% LF)
• Target ancillary revenue per pax at 364 Baht
• Refocus on Domestic and Domestic hub to hub
• Enhancing connectivity within our network via fly-thru up to 116 flights
• Launched the Fourth hub in Krabi
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TAA Statement of Net Income
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Unit: Baht million 2Q14 2Q13 Change 1H14 1H13 Change
Revenues 5,460.9 5,359.8 2% 11,920.8 11,388.7 5%
Operating costs (5,579.3) (4,626.6) 21% (11,440.8) (9,361.5) 22%
Other income & gain on FOREX 249.4 273.9 -9% 406.4 369.8 10%
Total SG&A (483.8) (321.2) 51% (873.7) (749.5) 17%
EBIT (352.8) 685.9 >-100% 12.7 1,647.5 -99%
Finance costs (64.6) (36.2) 78% (118.5) (63.5) 87%
Income tax expense 99.8 (151.1) >-100% 32.8 (346.3) >-100%Net profit (loss)/ Total
comprehensive income (317.6) 498.7 >-100% (73.0) 1,237.7 >-100%
Basic Earnings (loss) per share (7.29) 11.45 >-100% (1.67) 28.42 >-100%
Net profit (loss) margin (6%) 9% -15 ppts (1%) 11% -12 ppts
EBIT margin (6%) 13% -19 ppts 0% 14% -14 ppts
EBITDA margin (3%) 14% -17 ppts 3% 16% -13 ppts
EBITDAR margin 14% 29% -15 ppts 19% 29% -10 ppts
TAA Statement of Financial Position
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*Including cash and cash equivalents, S-T investments, Investment in private funds.
Unit: Baht million 30 June 2014 31 Dec 2013 Change
Cash and equivalents* 4,989.4 6,437.7 -22%Aircraft, leasehold improvements, Equipment -net 11,919.0 10,835.9 10%
Intangible assets 13.9 12.0 16%
Total assets 20,888.5 21,107.9 -1%
Deferred revenues 3,821.5 4,299.2 -11%
Finance lease liabilities 8,850.4 8,160.8 8%
Deferred tax liabilities, net 311.8 309.7 1%
Total liabilities 15,105.1 15,251.5 -1%
Paid-up share capital 435.6 435.6 0%
Premium on share capital 2,628.8 2,628.8 0%
Retained earnings 2,719.1 2,792.0 -3%
Total shareholders’ equity 5,783.4 5,856.4 -1%
TAA Key Operational Statistics
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2Q14 2Q13 Change 1H14 1H13 Change
Passengers carried (million) 2.81 2.42 16% 5.92 4.99 19%
Capacity (million seats) 3.61 2.94 23% 7.50 5.91 27%
Load factor 78% 82% -4 ppts 79% 84% -5 ppts
RPK (million) 2,855 2,551 12% 5,913 5,165 14%
ASK( million) 3,667 3,064 20% 7,488 6,076 23%
No. of stages flown 20,066 16,358 23% 41,656 32,812 27%
Average stage length (km) 1,015 1,040 -2% 1,000 1,029 -3%
Average fare (Baht) 1,612 1,877 -14% 1,665 1,938 -14%
RASK (Baht) 1.49 1.75 -15% 1.59 1.87 -15%
CASK (Baht) 1.65 1.61 2% 1.64 1.66 -1%
CASK ex-fuel (Baht) 0.93 0.94 -1% 0.91 0.95 -4%
AAV Statement of Comprehensive Income
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Unit: THB million ConsolidatedChange
ConsolidatedChange
2Q14 2Q13 1H13 1H14
Revenues 5,460.9 5,359.8 2% 11,920.8 11,388.7 5%
Operating costs (5,583.6) (4,632.3) 21% (11,449.2) (9,373.1) 22%
Other income & gain on FOREX 250.1 274.7 -9% 407.0 370.5 10%
Total SG&A (484.9) (329.1) 47% (872.8) (765.0) 14%
EBIT (357.5) 673.1 >-100% 5.8 1,621.1 -100%
Finance costs (64.6) 36.2 >-100% (118.5) (63.6) 86%
Income tax expense 100.7 (151.0) >-100% 38.3 (345.7) >-100%
Net profit (loss)/ Total comprehensive income (321.4) 485.8 >-100% (74.4) 1,211.8 >-100%
Net profit (loss) attributable to parent (176.3) 264.6 >-100% (37.3) 661.9 >-100%
Non-controlling interests (145.1) 221.2 >-100% (37.1) 549.9 >-100%
Basic Earnings per share (0.04) 0.05 >-100% (0.01) 0.14 >-100%
AAV Statement of Financial Position
*Including cash and cash equivalents, S-T investments, Investment in private funds.
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Unit: THB millionConsolidated
Change30 June 2014 31 Dec 2013
Cash and equivalents* 4,991.2 6,439.8 -22%Aircraft, leasehold improvements, Equipment -net 12,027.4 10,956.0 -10%
Intangible assets 14,870.6 14,868.7 0%Goodwill 8,824.8 8,824.8 0%Total assets 44,703.6 44,935.3 -1%Deferred revenues 3,821.5 4,299.2 -11%Finance lease liabilities 8,850.4 8,160.8 8%Deferred tax liabilities, net 3,306.3 3,309.7 0%Total liabilities 18,102.8 18,260.0 -1%Paid-up share capital 485.0 485.0 0%Premium on share capital 2,599.8 2,599.8 0%Retained earnings 16,223.7 16,261.1 0%
Equity attributable to parent 19,308.5 19,345.9 0%Non-controlling interests 7,292.3 7,329.4 -1%Total shareholders’ equity 26,600.8 26,675.3 0%
499
(318)
1,238
(73)
2Q13 2Q14 1H13 1H14
TAA : Financial Highlights
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1,559 765
3,355
2,234
2Q13 2Q14 1H13 1H14
Unit: Million Baht
RevenueRevenueUnit: Million Baht
EBITDAREBITDAR
Net ProfitNet Profit
5,360 5,461
11,389 11,921
2Q13 2Q14 1H13 1H14
2Q13 VS 2Q14 • Revenue slightly increased by 2% due to an increase in an
ancillary income, despite of a decrease in AVG. fare. • EBITDAR margin soften at 14%(-15 ppts YoY) mainly from
higher expense, especially fuel cost. • Net loss at Baht 318 million due to an increase in aircraft
rental and finance costs in relation to larger fleet size.1H2013 VS 1H2014• Revenue increased by 5% in relation to an increase in
ancillary income. • EBITDAR margin dropped at 19% (-10 ppts YoY) due to a
weakening yield. • Net loss at Baht 73 million resulting from a rise in aircraft
rental and finance costs in relation to larger fleet size.
+2% YoY
+5% YoY
->100 % YoY ->100 % YoY
-51% YoY
-33% YoY
Unit: Million Baht
265
(176)
662
(37)
2Q13 2Q14 1H13 1H14
AAV : Financial Highlights
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Unit: Million Baht
RevenueRevenueUnit: Million Baht
Net Profit/loss (Parent)Net Profit/loss (Parent)
5,360 5,461
11,389 11,921
2Q13 2Q14 1H13 1H14
2Q13 VS 2Q14 • Revenue was at Baht 5,461 million (+2% YoY) • Net loss (Parent) was Baht 176 million (-167% YoY) • Basic Loss Per Share 0.04 baht/share
1H13 VS 1H14• Revenue was at Baht 11,921 million (+5% YoY) • Net loss (Parent) was Baht 37 million (-106% YoY) • Basic Loss Per Share 0.01 baht/share
+2% YoY
+5% YoY
->100% YoY ->100 % YoY
0.05
(0.04)
0.14
(0.01)
2Q13 2Q14 1H13 1H14
Unit: Baht
Basic EPSBasic EPS
->100 % YoY ->100 % YoY
GlossaryLoad Factor = Represents the number of passengers carried as a proportion to capacity, which is the number of seats available for passengers (180 seats for Airbus A320)Available seat kilometers (ASK) = which is the total number of seats available on scheduled flights multiplied by the number of kilometers these seats were flownRevenue Passenger Kilometers (RPK) = Revenue passenger kilometers, which is the number of paying passengers carried on scheduled flights multiplied by the number of kilometers those seats were flownAverage Fare = Calculated as Thai AirAsia's total passenger revenues and fuel surcharge divided by total number of passengers carriedRevenue per ASK (RASK) = Calculated as Thai AirAsia's revenues divided by ASKCost per ASK (CASK) = Calculated as the sum of Thai AirAsia's operating costs, selling expenses and administrative expenses (but excluding finance costs) divided by ASKCost per ASK (CASK ex-fuel) = Calculated as the sum of Thai AirAsia's operating costs, selling expenses and administrative expenses (but excluding finance costs) less fuel costs divided by ASKAverage stage length (kilometer) = Represents the average number of kilometers flown per flightAircraft Utilization = Represents the average block hours per day per aircraft during the relevant period. Block hours is calculated by measuring the duration between the time of departure of an aircraft and the time of arrival at its destination.On time performance (%) = A flight is deemed "on time" if the actual departure time is no more than 15 minutes of the scheduled departure time.
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