Disclaimers
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 approve practices and principles in the investment industry. The views are based on assumption subject to various risks and uncertainties and no assurance is made as to whether such future events will occur. No assurance is made as to the accuracy or completeness of information presented in this document.
Model
Boeing 737-800
ATR 72 - 500
15
2
186 - 189
66 - 72
Fleet/1 (Aircrafts) Capacity (Seats)
Flexible
Free 15 kg “Free of charge at least a weight of 15 kg. ”
“Seat Selection”
Free “Serve with Nok Kanom”
“Wi-Fi on Board target to launch in Q2/2014”
Remark: 1/ Fleet number as of 30 April 2014 2/ Routes is as of 30 April 2014
3
# Primary Routes 1 2 3 4 5 6 7 8 9
Bangkok – Hat Yai Bangkok – Chiang Mai Bangkok – Udon Thani Bangkok – Nakhon Si Thammarat Bangkok – Ubon Ratchathani Bangkok – Surat Thani Bangkok – Phuket Bangkok – Chiang rai Bangkok – Krabi
Current Weekly Flight Frequency* 56 49 42 35 42 35 28 42 14
Secondary Routes 10 11 12 13
Bangkok – Phitsanulok Bangkok – Trang Bangkok – Sakhon Nakhon Bangkok – Nakhon Phanom
21 14 7 7
Feeder Routes 14 15 16 17 18 19 20 21 22
Bangkok – Mae Sot Chiang Mai – Udon Thani Bangkok – Nan Bangkok – Roi Et Bangkok – Chumphon Bangkok – Loei Bangkok – Ranong Bangkok – Prae Bangkok – Burirum
14 7 14 7 7 7 7 7 7
International Routes Flight Schedule for Summer 2014
23 Bangkok - Yangon
14
4
Unit: %
Unit: %
Travel Agent 10%
Corporate and Group Other Sales 1% 5%
Direct Debit 8%
Cash 11%
Station 11% Web site and Electronics 63%
Call Center 10%
As of 31 March 2014
ATM Others 6% 1%
Credit card 57% 7- eleven 17%
5
• First flight 1 November 2013 • Started 2nd daily flight from Jan 2014, able to serve both Business and Leisure sectors
No. of Passenger and Cabin Factor for Don Meuang - Rangoon 25,000
79% 65%
20,000 15,000
51%
10,000
5,000
83%
50%
55%
42%
6,784
9,816
Dec-13
Jan-14
15,191
17,988
19,357
11,538
3,282
Nov-13
Feb-14
No. of Cabin Factor Cabin Factor Passenger
Mar-14
Apr-14
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
• High awareness of NOK in Myanmar Market • Cabin Factor reached above 80%
May-14
NoCabin of Passenger Factor Cabin Factor
6
• Strong Passenger Growth since 2011
Unit: Million 7.00 6.00
5.00 4.00
• Passenger carried achieved 1.77 million pax. in Q1/2014 increase 23.4% YoY. • Expected to reach 7 million pax for year 2014, or over 20% growth
5.89 4.15
3.13
3.00 2.00
1.43
1.77
1.00 0.00
2011
Unit: % 95% 85% 75%
88% 1,014
2012
86%
993
2013
84% 1,038
Q1/2013
1,202
Q1/2014
Unit: Mil. Seat-Km. 1,306 1,400 80%
1,200 1,000
79%
65%
800
55%
600
45%
400
35%
200
25%
• Maintain cabin factor at 80% amid political turbulence • Q1/2014 ASK increased to 1,306 mil.seat-Km or increase 28.7% YoY. • Maintain high cabin factor at 80% in Q1/2014. • Average airfare (exc. VAT, airport tax) down to 1,630 THB/Pax/Sector or decrease 12.1% YoY.
0 1Q13
2Q13
3Q13
ASK (Mil. Seat-Km.)
4Q13
1Q14
Cabin Factor (%)
7
• Continuous Revenue Growth
Unit: THB Million 11,315
12,000 10,000
8,000 6,000
8,260 6,037
4,000
2,826
3,136
Q1/13
Q1/14
• Total revenue increase 11.0% YoY. in line with more production. • However, political unrested in Q1/14 and competition push pressure on average fair in Q1/14.
2,000 2011
2012
2013
Unit: THB Million
12,000
Feeder Routes
10,000
928 1,321
8,000 6,000 4,000 2,000
Secondary Routes Primary Routes
470 1,183 217 927 4,416
8,040 5,993
• Secondary and Feeder Routes as our Key Contributors for Future Expansion • Revenue contribution from secondary and feeders routes has been surging due to the trend of urbanization and switching mode of transportation.
267 347
185 331 1,999
2,188
Q1/13
Q1/14
2011
2012
2013
8
• Total cost increased in line with production
Unit: THB Million 12,000
• Total cost increase 28.9% YoY. • Increase flight frequency and fleet expansion led to raise in variable cost and fixed cost.
10,215
10,000 7,740
8,000 6,000
5,785
4,000
2,394
3,086
2,000 2011
2012
2013
Q1/13
Q1/14
Unit: THB Million
Net Profit (Mil. THB)
• Net Profit interrupted • Demand slowdown from political situation • Launched Promotion to keep competitiveness and boost up cabin factor from both full services and LCC Q2/2014 Outlook (Apr – 1st half of May)
Q1/2013
Q1/2014
416
41
• Passenger returned to travel due to long holiday e.g. Songkran Festival, May Day etc. No. of Pax (Mil.)
4M/2013
4M/2014
1.88
2.38
• Cabin factor bounced back above 80% level on average in April 9
• RASK dropped due to…
Unit: THB/Seat/Km.
3.00
2.50
2.63
• Political unrested and economic slowdown • More competition in the market.
2.77 2.39
2.00
1.54
1.50
2.37
2.35
2.37
1.51
1.50
1.00 0.50 0.00 2013 RASK
Unit: THB/Seat/Km. THB/Seat/Km. Unit: 2.50
2.00
2.35 2.35
Q1/2013 CASK CASK exc. Fuel
2.37
0.18
0.17
0.45
0.48
2.37 SG&A Fixed Cost
1.50 0.88
0.85
0.84
0.87
Q1/2013
Q1/2014
1.00 0.50
Q1/2014
Other Variable Cost Fuel Cost
• CASK Under Control, Be able to Maintain Efficiency • CASK was stable YoY. • However, CASK exc. Fuel down to 1.50 THB/Seat/Km. 0.9% YoY. as a result of cost efficiency. • Fuel cost per unit increase 3.6% YoY due to impact from THB/USD depreciation YoY. (THB/USD depreciate 9.5% YoY) • Fixed cost per unit increase 6.6% YoY due to higher lease rate for newer aircraft in fleet. • Other variable cost and SG&A down 3.7% YoY. due to economies of scale.
0.00
10
No. of Pax 2008 - 2014
700,000
“ Political Unrested May 2014”
600,000 500,000 400,000
300,000 200,000 100,000
Thailand has been through many turbulence but…… • Passenger have been growing in every crisis • Trend of urbanization and middle class income growth
“ Dissolve of the Parliament May “Oil Price 2011” “ Political Shock 2008” Unrested May 2010” “ Shut down Airport 2008” “ Mega Flood 2011” Apr-14
Oct-13
Jan-14
Jul-13
Apr-13
Oct-12
Jan-13
Jul-12
Apr-12
Jan-12
Jul-11
Oct-11
Apr-11
Jan-11
Jul-10
Oct-10
Apr-10
Oct-09
Jan-10
Jul-09
Apr-09
Oct-08
Jan-09
Jul-08
Apr-08
Jan-08
-
11
Induce advance booking demand
Nok Baby and “the Angel” “1st in the World Reality Show recruit Cabin Crew”
Enhance more convenient to tourist by “Fly ‘n’ Ride and “Fly ‘n’ Ferry” 12
Unit: THB Million
Unit: THB Million 7,000
6,272
6,426
2013
Q1/2014
4,543
4,584
6,000 5,000 4,000 3,000
2,000 1,000 -
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 -
2013
Unit: THB Million 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -
2013
Q1/2014
1,842
1,728
Q1/2014
Dividend per Share (THB/Share) 70% 60% 50% 40% 30% 20% 10% 0%
0.23
57%
2011
0.50
1.031/ 60%
50%
2012
2013
13
New JV with Scoot • NOK will hold not more than 51% • Initial Investment 2,000 million THB. • Independent Airlines focusing on mediumhaul flight • International Expansion to key profitable destinations e.g. Tokyo, Osaka, Hong Kong, Seoul and Beijing
Beijing Seoul
Tokyo
Osaka
Hong Kong
Bangkok
1. Capturing medium-haul LCC market opportunities 2. Feeder for inbound passenger for NOK Airlines
3. Well-established medium-haul LCC brand in the region for immediate use 4. Utilize Scoot’s existing infrastructures at marketbased rates to minimize costs and speed up initial set-up 14
80
Beijing Population 20 Million GDP per capita 13,797 USD
South Korea
60 Japan
Tourist Spending (Mil. USD)
100
China
Population 49 Million Population 128 Million GDP per capita 23,113 USD GDP per capita 46,736 USD
Japan 40
Australia
Hong Kong
Bangkok Population 65 Million GDP per capital 6,572 USD
Population 7 Million GDP per capita 36,667 USD
Korea
20
India Hong Kong
Malaysia % of No. of tourist share in Thailand
Singapore
Thailand 0 Indonesia 0%
5%
50
20 10
10%
15%
20%
25%
A circle represents No. of outbound Tourist Unit: Million Travelers Source: World Travel Monitor 2013 , IPK International
15
Unit: Millions 2.5 2.0
2.29 1.84
1.96
Low Cost Carriers Capacity added account only for 15%
7% 1.5
8% 10%
1.0
9%
21%
0.5 0.0 2011
2012
2013 3/
41%
48%
21%
18%
Before Low Cost entering to Market
THAI
ANA
18%
JAL
Delta
Nok Scoot
Air Asia X
Remark: 1/ Source: Thai DCA 2/ Source: CAPA analysis. Capacity is calculated from total seat per week from BKK – NRT 3/ Japan Visa Exempt for Thais since July 2013 onwards for15 days stay
16
Full service Airlines
Unit: Baht 60,000
53,000
49,080
50,000
40,000
35,000 30,990
NokScoot 25,000 25,000
30,000 Nok Scoot
20,750
20,000
Low Cost Airlines
10,000
15,000
15,000
14,555
16,700 9,000 9,000
8,550
0
Service
ANA
Japan Airlines Thai Airways
Delta
Nok Scoot** Air Asia X*
*Indicative Price from BKK – KL – NRT **NokScoot estimated price range
17
NOKScoot JV Business Plan • Nok-Scoot focus on medium haul flight range. • Nok-Scoot’s flight operation will start in key profitable routes and expand both in number of destinations and frequency.
Fleet Plan (B777-200) 7 6 5
4 2
FY14/15
FY15/16
FY16/17
FY17/18
FY18/19
18