thai airways international pcl - listed...

1 Investor Relations Department

http ://www .thaiairways .com /about-thai /investor-relations /en/investor .html

THAI AIRWAYS INTERNATIONAL PCLQuarter 3/2012(Updated on 20 JAN 13 )


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 geo-political, economic and non-controllable 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 here-in 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 investm ent guide or as an offer or solicitation of an offer to buy or sell equity shar es or other securities issued by the Company.


Thailand’s National Flag Carrier

51.03% : Holding by MOF

15.50% : Holding by Vayupak

(MFC & KTAM)

33.47% : Others

Market Capitalization:

48,239 MTHB(As at 28 DEC 2012)

Major ShareholdersMajor Shareholders

Company Facts

MINISTRY OF FINANCE, 51.03%

VAYUPAK (MFC), 7.75%

VAYUPAK (KTAM), 7.75%THAI NVDR, 4.03%

GOVERNMENT SAVING FUND

2.13%

STATE STREET BANK AND TRUST COMPANY , 1.91%

THE BANK OF NEW YORK MELLON-CGT

TAXABLE, 1.15%

HSBC (SINGAPORE)

NOMINEES PTE LTD, 1.13%

STATE STREET BANK EUROPE

LIMITED, 0.81%

OTHERS, 22.31%

As of Mar 12


Budget Airline

49%

THAI Airways International PLC.

Tour Eurng Luang

49% 49% 49%55%

Thailand

Business Overview

GroundServices

Business Units

Total Revenue 155,442 MTHB (9M 2012)


2012 Q3’2012% Change

YoY 9M’2012% Change

YoY

Total Revenue (MTHB) 52,431 +4.9% 155,442 +5.5%

Net Profit

(Included FX) 1,750 -28.5% 3,868 +180.4%

Assets 291,553(30 Sep 12)

+6.2%(Change from

Year 2011)

291,553(30 Sep 12)

+6.2%(Change from

Year 2011)

2012

# of Aircraft (As of 31 DEC 12)) 97*

Frequency Flights per Week (Effective 28 OCT 12 – 30 MAR 13) 871

Destinations Served (Effective 28 OCT 12 – 30 MAR 13) 70

Countries Served (Effective 28 OCT 12 – 30 MAR 13) 36*Excluding : 1 A340-500 Charter flight

4 B 737-400 & 2 ATR-72 leased to Nok Air

2012 Q3’2012% Change

YoY9M’2012

% Change

YoY

Passenger carried (Million) 5.10 +6.9% 15.12 +8.8%

Million Revenue Passenger Kilometers (MRPK) 15,129 +3.1% 44,836 +6.0%

Freight carried (tons) 166,187 -1.2% 501,959 -2.6%

Million Revenue Freight Ton Kilometers (MRFTK) 663 -1.7% 1,960 -6.5%

Snapshot

Note: TG only


Units 2012 2011%

ChangeYoY

2012 2011%

ChangeYoY

Passenger Production MASK 6,990 6,357 +10.0% 72,071 71,726 +0.5%

Passenger Traffic MRPK 5,364 3,878 +38.3% 55,071 50,634 +8.8%

Cabin Factor % 76.7 61.0 +25.7% 76.4 70.6 +8.2%

Passenger carried Million 1.8 (E) 1.3 +35.6% 18.6 (E) 16.8 +10.9%

Passenger Yield (Inc. surcharge)

THB/km 2.72* 2.81 -3.4% 2.70 2.75 -1.7%

Freight Production MADTK 428 386 +10.9% 4,460 4,508 -1.1%

Freight Traffic MRFTK 239 213 +12.4% 2,433 2,543 -4.3%

Freight Factor % 55.9 55.2 +1.3% 54.6 56.4 -3.2%

Freight carried Tons 59,405 55,827 +6.4% 620,258 632,032 -1.9%

Freight Yield(Inc. surcharge)

THB/km 9.26 10.01 -7.5% 9.79 9.86 -0.8%

Operation Summary

Note : * Yield 2012 is passenger - sales commission and discount/RPK

November 2012 January - November 2012


Revenue

Passenger Revenue* JAN-AUG 2012 = 107,871 MTHB

By Class By Area

* Schedule flight only

JAN - AUG 2012

Royal First 2% Royal Silk

20%

Premium Economy

1%

Economy 77%

Regional49%

Australia10%

Europe28%

North Pacific2%

Africa1%

Domestic10%


THAI’s Route Network

World Route Network

International Route

Effective: 28 Oct 2012 - 30 Mar 2013Total

Countries 35

Cities 62

Frequency flight / Week 640

Seats/Week 391,977


THAI’s Route Network

CHIANG RAI

MAE HONG SON

UDON THANI

KHON KAEN

PHUKET

HAT YAI

PHITSANULOK

CHIANG MAI

UBON RATCHATHANI

SAMUI

NAKHON PHANOM

BURIRAM

BANGKOK

Nok Air (Code Share)

THAI

Domestic Route Network

Domestic Route


Cities 8

Frequency flight / Week 231

Seats / Week 128,519


Current Fleet: 97 Aircraft *

Current Fleet

First Business Economy Total

36R1 4 N.A. 46 201 247

36R3 5 N.A. 28 232 260

A340-600 3461 6 8 60 199 267 6 FL

3302 12 N.A. 42 263 305

3303 8 N.A. 36 263 299

3304 5 N.A. 36 263 299

3201 2 N.A. N.A. 174 174

3202 2 N.A. N.A. 174 174

A380-800 3801 3 12 60 435 507 3 FL

B737-400 7341 5 N.A. 12 137 149 2 O, 3 OL

7442 5 14 50 325 389

7443 4 10 40 325 375

7444 6 10 40 325 375

7445 1 9 40 325 374

Freighter 2 N.A. N.A. N.A. N.A.

B777-200 7723 8 N.A. 30 279 309 6 O, 2 OL

B777-200ER 77E1 6 N.A. 30 262 292 6 FL

7732 5 N.A. 34 330 364

7732 TKE 1 N.A. 34 325 3597739 5 8 30 274 31277B1 2 N.A. 42 306 348

Total 97 71 690 5,417 6,178 45 O, 34 FL, 18 OL

B777-300

9 O

10 O, 13 FL ,2 OL

A300-600

4 O, 2 FL

A320-200 4 OL

B777-300 ER 7 OL

Aircraft Type Version# of

AircraftFinancial Method

# of Seat

A330-300

B747-400 14 O, 4 FL

As of 31 DEC 12

46% of O 35% of FL 19% of OL O=Owned FL=Financial lease OL=Opera ting lease

*Excluding: 1 A340-500 Charter flight, 4 B737-400 and 2 ATR-72 leased to Nok(Note: Approximately)


Note : OL = Operating leas / FL = Financia l leaseI = Intercontinental / R = Regional

Aircraft Delivery Plan

NEW A/C DELIVERY

2012 2013 2014 2015 2016 2017 TOTAL

A380-800 3 (FL)(SEP/NOV/DEC)

3 (FL)(MAR/OCT/NOV)

- - - - 6

B777-300ER 2 (OL)(AUG/OCT)

6 (OL)(MAR/APR/JUN/JUL/AUG/OCT)

3 (FL) 3 (FL) - - 14

A330-300 3 (FL)(FEB/SEP/OCT)

2 (FL)(JAN/APR)

- - - - 5

A350-900 - - - - 2 (OL) R2 (FL) I

6 (OL) R10

B787-9 - - - - - 2 (OL) 2

B787-8 - - 4 (OL) 2 (OL) - - 6

A320 (Thai Smile) 4 (OL)(JUN/AUG/AUG/SEP)

2 (OL)4(FL)(JAN/MAR)/(OCT/ OCT/NOV/DEC)

2 (FL) 5(OL) 3 (FL) - - 20

TOTAL 12 17 14 8 2 10 63

Average Fleet Age* 10.3 9.4 8.8 8.5 8.9 8.0 9.0

* Based on Leased A320

As at 31 DEC 2012


Note : *Return from Nok Air

Phase Out Plan

PHASE-OUT PLAN 2012 2013 2014 2015 2016 2017 TOTAL

B747-400 - 4 - - 2 2 8

B777-300ER (Jet Airways)

- 5 - - - - 5

A340-500 4(MAY)

- - - - - 4

B777-200 - - - - - 4 4

A330-300 - - 2 4 - 2 8

A300-600 2(MAR)

45 - - - 11

B737-400 3*(JUL/JUL/OCT)

1*+2 2 1 - - 9

ATR-72 - - 2* - - - 2

TOTAL 9 16 11 5 2 8 51

As at 31 DEC 2012


THAI Smile to complete THAI at the light premium le vel and NOK to close out the low cost market

Brand positioning matrix for THAI and affiliated co mpanies

Note: * NOK focuses on DMK only; ** Possibilities surrounding expanding fleet to include wide-body aircraft will be evaluated as opportunities arise

Product Offering

Stage lengthsmall* Regional Intercontinentalconnecting

Premium 2 class

Premium 3 class

Premium regional

(wide body)

Domestic

No frills

Premiumfull service

big

Closing THAI’s Business Gap

Intercontinental

Launch July 2012

2 Class2 Class


LOW to MEDIUM

• Domestic focus with some added value and maintaining very low cost

Domestic value-for-moneycarrier

LOW to MEDIUM

• Low cost base achieved through aspects of LCC model, such as single aircraft type, new fleet, etc.

MEDIUM to HIGH

• Minor improvements could be made in cost efficiency

Cost base

Regional carrier

Premium network carrier

Brand positioningBrand

Product by Cost Base

THAI’s Product Portfolio


THAI Smile Fleet Plan & Route Network

# of aircraft

Fleet Plan (2012-2015)

4

10

17

2012

2013

2014

THAI Smile based at Suvarnabhumi AirportOperates in domestic and regional secondary routes

and synchronize with TG network.

*Note: Effective : 28 October 2012 – 30 March 2013

2015 20

International & Domestic Route


Countries 2

Cities 5

Freq./Week 84

FREQUENCY DESTINATION

7 Flights / week Bangkok – Phuket V.V.

7 Flights / week Chiang Mai – Phuket V.V.

14 Flights / week Bangkok- Macau V.V.

14 Flights / week Bangkok – Surat Thani V.V.

14 Flights / week Bangkok – Chiang Mai V.V.

28 Flights / week Bangkok - Krabi V.V.

MacauMacauMacauMacau

Airbus 320 Brand new narrow body aircraft


Nok Air based at Don Mueang AirportCurrently operates only domestic point-to-point

Nok Air Route Network

TG’s Proportion of Shareholding increased from 39% to 49% (OCT 2011)

Route Total

As at end of SEP 2012 Domestic

Cities 20

Freq./Week 392

4 of Boeing 737-400

5 of Boeing 737-800

2 of ATR 72

11 Aircrafts (As at end of SEP 12)


THAI’s Upgrade and Retrofit Schedule

B747-400No. 13-18

6

First Business Economy# of Aircraft Progress

# 13,14: Completed OCT. 2012

# 15-18: By MAY 2013

B747-400No. 7-12

6 All: Completed MAR. 2012

B747-400 Improved seats & new PTV in all classes B77 7-200 Installed in seat VDO in Y class

B777-200 8# 1,2: Completed OCT 2012

# 3-8: By JUN. 2013


New Interactive In-Flight Entertainment

Entertainment

- Premium class over 3 hours flight: Portable media player (IPAD 2)

- Economy class: On – Earphone services

- Movies: 100 titles

- Short program: 150 programs

- CD Album: 500 albums

- Games: 60 games

- USB plug and play

Entertainment

- Premium class over 3 hours flight: Portable media player (IPAD 2)

- Economy class: On – Earphone services

- Movies: 100 titles

- Short program: 150 programs

- CD Album: 500 albums

- Games: 60 games

- USB plug and play

On-board Services

- E-Meal Menu - E-Duty Free Shopping

- E-Magazine - Seat Chat

On-board Services

- E-Meal Menu - E-Duty Free Shopping

- E-Magazine - Seat Chat

E-Duty Free Shopping

Full Audio Video on Demand (AVOD) in all classes* (* Except A330-300, A300-600 and B737-400)

Connectivity

- Voice Call - SMS Text Messaging

- GPRS Email - Internet Access

Connectivity

- Voice Call - SMS Text Messaging

- GPRS Email - Internet Access

Infotainment

- About THAI - Airport Information

- Window on Thailand - Travel Destination Information

Infotainment

- About THAI - Airport Information

- Window on Thailand - Travel Destination Information

E-Duty Free ShoppingE-Meal Menu


Customer Value

In-Flight Products

Portable Media Player (iPad2) in Premium class typeOver 3 hours flight

Effective 25 June 2012: BKK-Pusan1 July 2012: BKK-Shanghai, BKK-Mumbai

On-Earphone ServicesIn Economy class

• 6 Different menus will be cycled for Regional route s and 4 menus for European routes

• Food and beverage menu will be changed monthly

Food & Beverage

Greater Attention to Customers’ Needs


Internet Sales

Ticket Sales Via Internet

8.81

7.95

7.187.33

8.27

8.20

11.02

8.09

8.69

7.797.32

8.77

7.787.26

7.77

8.587.63

8.03

8.89

11.44

5.8

5.164.8

5.314.98 5.00

5.34

5.975.69

6.01

6.76

8.76

3.553.34 3.28

3.813.25

3.634.15

4.514.26 4.15

4.68

6.03

2.00

4.00

6.00

8.00

10.00

12.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

% of Sales

Year 2010Year 2009 Year 2011 Year 2012


Check-in via Mobile (http://m.thaiairways.com)

# of PAX

Check-in via Internet

8.30

7.817.807.617.387.47

7.287.357.376.987.02

7.496.71

6.506.576.506.236.15

5.665.93

5.465.355.475.95

5.365.165.084.904.864.63

4.094.103.663.653.75

4.013.453.363.26

2.862.82.672.312.151.971.871.78

0.00

3.00

6.00

9.00


%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

8,704

Year 2010Year 2009 Year 2011 Year 2012

e-Services


Monthly fuel hedging 2008-2011 - % of consumption by month

Fuel Management

Hedging combined with fuel surcharge greatly mitiga tes fuel price fluctuation risk

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

%69

%69

%69

%69

%69

%69

%51

%51

%51

%50

%50

% 56%

80%

80%

80%

80%

80%

80%

73% 76

% 79% 84

%

84%

84% 93

%93

%93

%85

%85

%85

%

57%

57%

57%

54%

54%

54%

Jan-

08F

eb-0

8M

ar-0

8A

pr-0

8M

ay-0

8Ju

n-08

Jul-

08A

ug-0

8S

ep-0

8O

ct-0

8N

ov-0

8D

ec-0

8Ja

n-09

Feb

-09

Mar

-09

Apr

-09

May

-09

Jun-

09Ju

l-09

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10F

eb-1

0M

ar-1

0A

pr-1

0M

ay-1

0Ju

n-10

Jul-

10A

ug-1

0S

ep-1

0O

ct-1

0N

ov-1

0D

ec-1

0Ja

n-11

Feb

-11

Mar

-11

Apr

-11

May

-11

Jun-

11Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12F

eb-1

2M

ar-1

2A

pr-1

2M

ay-1

2Ju

n-12

Jul-

12A

ug-1

2S

ep-1

2O

ct-1

2N

ov-1

2D

ec-1

2Ja

n-13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13


Flight Safety Management- Flight Safety Promotion- E-ASR (Air Safety Report) System

Defer unnecessary investment and expenses and prior itize investment.

Embargo non-revenue tickets on high demand route.

Reduce travel expenses, stationary, utilities expen ses.

To develop a leaner and more cost effective Cargo h andling.

Optimize number of flight crew.

Personnel cost reduction, reduce headcount and decr ease overtime expenses.

Change glass wine bottle to plastic wine bottle for lighter weight.

Reduce wastage of the in – flight spare equipment on ly carry what is actually required.

Cost Management


Financial Performance


Performance Summary (Q3’2011 & Q3’2012) THAI and its subsidiaries

(Units : MTHB) Q3'2011 Q3'2012

Total Revenue 49,961 52,431

Total Expense 49,668 50,399

Foreign currency exchange (Loss) 2,299 (120)

Profit before income tax expense 2,592 1,912

Net tax expense (income) 140 44

Net profits (loss) 2,447 1,750



EBIT, EBITDA and Net Profit (Q3’2011 & Q3’2012)

Units : MTHB


Factors Impacting Q3’2012 Results

• Recovery in passenger demand 6.9% higher than last year

• ASK Lower by 0.5% but RPK grew by 3.1% over last year

• Fuel cost 4% lower than last year

• Passenger yield higher than last

quarter & last year

• Actual Flood Disaster relief was lower than reserves totaling THB 190 million

• Reversed reserves for Antitrust cases THB 682 million

(Exclude FX& tax impact)

EBIT EBITDA *NET PROFIT *NET PROFIT


Operating / Total Revenue (Q3’2011 & Q3’2012)

40,207 43,092

6,6896,330204

2042,087

2,105

128104

653589

0

20,000

40,000

60,000

Q3'2011 Q3'2012

Passenger Freight Mail Other activities Interest income Other income

Revenue % Change % to Tot. Rev.Passenger 7.18 82.19

Freight 5.35- 12.07

Mail 0.08 0.39

Other activities 0.82- 3.98

Interest income 23.28 0.24

Other income 9.89- 1.13

Total Income 4.94 100.00

Operating Revenue Total Revenue

*Excludes Interest & Other income- Operating revenue Q3’2011 = 49,204 MTHB - Operating revenue Q3’2012 = 51,714 MTHB

Total revenue Q3’2011 = 49,961 MTHB Total revenue Q3’2012 = 52,431 MTHB

Units : MTHB



3557 4005

6,470 7,505

20,01319,139

5,137 5,3422,4722,7511,4431,374

3,043 3,1865,113 4,963

1,1581,237

0

15,000

30,000

45,000

60,000

Q3'2011 Q3'2012

Personnel Fuel and Oil Flight Service Expense

Inventory&Supply Crew Expense Aircraft Maintenance

Depreciation Lease of a/c Other

Total ExpenseOperating Expense

% Change % of

Expense YoY Tot. Exp.Personnel expense 15.99 14.86

Fuel and oil 4.37- 37.89

Flight service expense 4.00 10.58

Inventories and supplies 10.16- 4.89

Crew expense 5.06 2.86

Maintenance/overhual 4.67 6.31

Depreciation/amortisation 2.94- 9.82

Aircraft lease/spare parts 6.38- 2.29

Other expense 138.16 10.50

Total Expense 6.65 100.00

Operating / Total Expense (Q3’2011 & Q3’2012)

* Excludes FX, Impairment losses and Share of profit of investments by the equity method- Operating expense Q3’2011 = 48,695 MTHB - Operating expense Q3’2012 = 49,213 MTHB

Total expense Q3’2011 = 47,369 MTHBTotal expense Q3’2012 = 50,518 MTHB

Units : MTHB



Ratios – Q3’2011 & Q3/2012

Ratios units Q3’2011 Q3’2012Earnings Per Share (THB) 1.12 0.8

Book Value per Share (THB) 31.4 30.7

Price / Book Value (Times) 0.6 0.7

EBIT (MTHB) 368 2,501

EBITDA (MTHB) 5,482 7,464

EBITDAR (MTHB) 6,719 8,622

IBD to Equity (Times) 2.0 2.2

Debt Service Coverage* (Times) 1.1 1.4

Interest Coverage (Times) 3.7 5.2

EBITDA Margin (%) 11.1 14.4

Operating Profit Margin (%) 0.7 4.8

Net Profit Margin (%) 5.0 3.4

Cash to Total Revenue (%) 18.5 18.4


*EBITDAR – TAX / Interest + Rent + Long Term Debt Re payment - Refinance


Performance Summary (9M ’2011 & 9M’2012) THAI and its subsidiaries

(Units : MTHB) 9M'2011 9M'2012

Total Revenue 147,372 155,442

Total Expense 148,925 152,796

Foreign currency exchange (Loss) (3,325) 1,723

Profit before income tax expense (4,878) 4,369

Net tax expense (income) (99) 291

Net profits (loss) (4,809) 3,868



EBIT, EBITDA and Net Profit (9M 2011 & 9M 2012)

Units : MTHB


Factors Impacting 9M 2012 Results

• Recovery in passenger demand 8.3% higher than last year

• Lower ASK by about 0.2% but RPK saw growth of 6% over last year

• Fuel cost 4% higher than last year

• Higher capacity introduced

• Weaknesses of US & European economies

• Yield pressure due to heightened competition and campaigns

(Exclude FX& tax impact)

EBIT EBITDA NET PROFIT NET PROFIT


Operating / Total Revenue (9M 2011 & 9M 2012)

117,629127,195

20,58619,309625

6366,504

6,229

362325

1,9781,435

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

9M'2011 9M'2012

Passenger Freight Mail Other activities Interest income Other income

Revenue % Change % to Tot. Rev.Passenger 8.13 81.83

Freight 6.20- 12.42

Mail 1.83 0.41

Other activities 4.42 4.18

Interest income 11.42 0.23

Other income 27.44- 0.93

Total Income 5.48 100.00

Operating Revenue Total Revenue

*Excludes Interest & Other income- Operating revenue 9M’2011 = 145,069 MTHB - Operating revenue 9M’2012 = 153,645 MTHB

Total revenue 9M’2011 = 147,371 MTHB Total revenue 9M’2012 = 155,442 MTHB

Units : MTHB



10574 11879

22,898 22,386

56,89459,144

15,333 15,4527,0617,1194,2214,083

8,623 9,47514,916 15,155

3,2634,147

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

9M'2011 9M'2012

Personnel Fuel and Oil Flight Service Expense

Inventory&Supply Crew Expense Aircraft Maintenance

Depreciation Lease of a/c Other

Total ExpenseOperating Expense

% Change % of

Expense YoY Tot. Exp.Personnel expense 2.23- 14.82

Fuel and oil 3.95 39.15

Flight service expense 0.77 10.23

Inventories and supplies 0.81- 4.67

Crew expense 3.39 2.79

Maintenance/overhual 9.88 6.27

Depreciation/amortisation 1.61 10.03

Aircraft lease/spare parts 21.32- 2.16

Other expense 18.21- 9.88

Total Expense 0.77- 100.00

Operating / Total Expense (9M ’2011 & 9M’2012)

* Excludes FX, Impairment losses and Share of profit of investments by the equity method- Operating expense 9M’2011 = 144,587 MTHB - Operating expense 9M’2012 = 148,036 MTHB

Total expense 9M’2011 = 152,249 MTHBTotal expense 9M’2012 = 151,073 MTHB

Units : MTHB



Ratios – 9M ’2011 & 9M’2012

Ratios units 9M’2011 9M’2012Earnings Per Share (THB) -2.2 1.77

Book Value per Share (THB) 31.4 30.7

Price / Book Value (Times) 0.6 0.7

EBIT (MTHB) 482 5,609

EBITDA (MTHB) 15,398 20,763

EBITDAR (MTHB) 19,545 24,026

IBD to Equity (Times) 2.1 2.2

Debt Service Coverage* (Times) 1.1 1.4

Interest Coverage (Times) 3.7 4.8

EBITDA Margin (%) 10.6 13.5

Operating Profit Margin (%) 0.3 3.6

Net Profit Margin (%) -3.3 2.5

Cash to Total Revenue (%) 18.5 18.4


*EBITDAR – TAX / Interest + Rent + Long Term Debt Re payment - Refinance


On – going Measures


Increase positive result areas; more frequency on s pilled flights and add new flights on interval timing.

Restructure pricing / fare strategy in all areas.

Monitoring sales and promotion campaigns.

Commit revenue target.

Ongoing Measures - Revenue Enhancement

Eliminate negative contribution flights.

Flexible and fast upload of fares.

Enhance electronic channel capability for broader a ccess and case of transaction


Ongoing Measures - New Partners

Launched Co – Brand Card with Sumitomo bank.

Negotiating with AEON Card Services Thailand to boo st Japanese customers.

Launched ROH & AGODA online hotel booking engine.

Launched China UnionPay Card for web sales in Chines e market.

Increase corporate accounts : Signed contract with Michelin Group.


Looking Ahead


Factors in Play Effecting Performance

FOREIGN EXCHANGE VOLATILITY Active short-term derivatives & money conversions

WEAKER TRAVEL DEMAND FROM EUROPElaunched promotions despite yields still below targ et,

advance promotion covers next 3-6 months

WEAK FARE ENVIRONMENTRequire dynamic action

HIGHER COMPETITION ALL AROUNDLaunched THAI Smile

RAPID FLUCTUATION OF FUEL PRICEFuel surcharge & fuel hedging in place


74.8 73.0 73.670.4

77.3 79.0 78.4 78.371.5 75.5

79.7 78.7

71.7 73.576.7

78.0

84.0

50.0

60.0

70.0

80.0

90.0

2008 2009 2010 2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-1 2 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13

Actual

55.252.1

61.5

54.049.7

54.754.4

56.4 55.8 54.152.2 50.4

55.356.9

55.8 56.0

37.0

30.0

40.0

50.0

60.0

70.0

2008 2009 2010 2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-1 2 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13

Estimated(As of 4.1.13)

Actual

Looking Ahead

Freight Factor

Cabin Factor

Estimated(As of 4.1.13)


Operating Statistics


5.17

3.66

4.44 4.83 4.92

4.20

4.77 4.50

5.16 4.86

5.10

2.00

4.00

6.00

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12

Passengers Carried(Million)

Freight Carried

166,155 179,329 180,341 188,109

172,749 174,570 168,199 175,708 170,625 174,570 166,187

100,000

130,000

160,000

190,000

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q 3'12

(Tons)

Year 2010


Year 2011

Q3’12 = 5.10 million (Increased 6.9% YoY)

Q3’12 = 166,187 tons (Decreased 1.2% YoY)

Year 2012

Year 2010 Year 2011 Year 2012


C/FRPKASK

Passenger 82

.0

82.3

78.8

72.1

56.7

65.3

76.3

74.6

73.1

74.3

71.8

75.3

77.8

77.6

73.0

71.8

61.9

65.7

77

.2

74.8

69.9

65.7

61.0

68.1

77.3

79.0

78.4

78.3

71.5

75.5

79.7

78.7

71.7

73.5

76.7

-

20.0

40.0

60.0

80.0

100.0

-

2,000

4,000

6,000

8,000

Jan

-10

Fe

b-1

0

Ma

r-1

0

Apr

-10

Ma

y-1

0

Jun

-10

Jul-

10

Aug

-10

Sep

-10

Oct

-10

Nov

-10

De

c-1

0

Jan

-11

Fe

b-1

1

Ma

r-1

1

Apr

-11

Ma

y-1

1

Jun

-11

Jul-

11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

De

c-1

1

Jan

-12

Fe

b-1

2

Ma

r-1

2

Apr

-12

Ma

y-1

2

Jun

-12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

Nov

-12

(%)Year 2010 Year 2011

(Million)

NOV'12 NOV'11 YoY% JAN-NOV'12 JAN-NOV'11 YoY%

MASK 6,990 6,357 10.0 72,071 71,726 0.5

MRPK 5,364 3,878 38.3 55,071 50,634 8.8

Cabin factor (%) 76.7 61.0 25.8 76.4 70.6 8.2

YoY (Month) YoY (Year to date)


Year 2012


54.4

60.5

63.9

62.4

66

.9

65.0

61.3

60.4

62

.2

62.5

60.8

57.9

53

.7

56.6

60

.1

58.0

57.8

57.7

55.1

54

.2

56.1

56

.3

55.2

54

.3

49.7

54.7

59.8

56

.4

55.9

54.1

52

.2

50.4

55.2

56.9

55.8

-

20.0

40.0

60.0

80.0

-

200

400

600

Jan

-10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan

-11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan

-12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

(Million) (%)

Freight

F/FRFTKADTK


Year 2010 Year 2011

YoY (Month)NOV'12 NOV'11 YoY% JAN-NOV'12 JAN-NOV'11 YoY%

MADTK 428 386 10.9 4,460 4,508 1.1-

MRFTK 239 213 12.2 2,433 2,543 4.3-

Freight factor (%) 55.9 55.2 1.3 54.6 56.4 3.3-

YoY (Year to date)

Year 2012


Passenger Yield (Including Fuel Surcharge)2.

72

2.49

2.54

2.56

2.32

2.21

2.30

2.44

2.27

2.51

2.64

2.84

2.73

2.63

2.54

2.68

2.44

2.42

2.45

2.55

2.40

2.56

2.60

2.72

2.87

2.82

2.70

2.82

2.78

2.64

2.63

2.75

2.70

2.81

2.81

2.82

2.87

2.73

2.67

2.69

2.62

2.60 2.

74

2.67 2.72

2.71

2.72

2.00

2.50

3.00


Year 2009 Year 2010 Year 2011 Year 2012

(THB/Km)


Freight Yield (Including Fuel Surcharge)

9.74

8.71

8.02

8.50

9.17

8.19

8.90

8.61

8.88

9.04

9.35

9.43

9.66

9.08

9.10

9.30

9.89

9.65

9.53

9.30

9.84

9.37

9.65

9.44

9.70

9.45

9.85

9.65

9.82

10.0

0

9.80

9.87

9.95

9.95

9.60

9.53 9.60

9.54

9.26

7.00

8.00

9.00

10.00


Year 2009 Year 2010 Year 2011 Year 2012

(THB/Km)

10.1

1

10.1

5

10.1

7

10.1

010.0

2

10.0

1

10.0

1


Hours / Day / Aircraft

Aircraft Utilization

Aircraft Utilization

12.0

11.7 11.6

11.3

11.1

11.6 11.7

11.2

11.5

10.9

11.7

10.0

11.0

12.0

13.0


2009 2010 2011 2012

thai airways international pcl - listed...

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