2014 - Bangkok Airways

Opportunity Day
March 13,2015
Disclaimer
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
2
Long History of Success
2014
2006
Listed in SET
Entered into 20 year concession
agreements for cargo services, ground
services and catering operations at
Suvarnabhumi International Airport
2014
Ordered 9 new
ATR 72-600s
2004
2013
Added Airbus A320 aircraft to fleet,
reducing CASK and expanding
international destinations
Celebrated 45th
Anniversary
1994
2007
Added ATR aircraft to fleet
Added Airbus A319 aircraft to
fleet, increasing passenger
capacity to most profitable
destination—Samui
1986
Commenced scheduled
passenger flight service under
the name “Bangkok Airways”
2006
Listed Samui Property Fund on
SET; retained a 25% stake
2002
Received full IATA
membership
1989
Commenced operations at Samui Airport and
received approval to fly first route (BKK-Samui)
Boutique Airline
Airport Related Services
Airport
3
Corporate Structure
Bangkok Airways
Public Co., Ltd.
90.00%
Bangkok Air
Catering
Co., Ltd.
90.00%
99.99%
99.99%
Worldwide Flights
Services
Bangkok Air
Ground Handling
Co., Ltd
Bangkok Airways
Ground Services
Co., Ltd.
Bangkok Airways
Holding Co., Ltd.
69.99%
Bangkok Air
Catering Phuket
Co., Ltd.
99.99%
BAC Gourmet
House Co., Ltd.
99.99%
49.00%
WFS-PG Cargo
Co.,Ltd
25.00%
Samui Airport
Property Fund
99.99%
SA Services
Co., Ltd.
Gourmet Primo
Co., Ltd.
51.00%
BFS Cargo DMK
Co., Ltd.
49.00%
4
Highly Experienced and Committed Management Team
Highly Experienced Management with Over 16 Years Average Tenor with Bangkok Airways
Dr. Prasert Prasarttong–Osoth
Vice Chairman, CEO
Puttipong Prasarttong–Osoth
Director, President
Founder of Bangkok Airways
President of BDMS and Group CEO
(2009 to present)
Founder of BDMS
President (2008 to present)
Board member of Aeronautical Radio of
Thailand
Holds the Certificate for Commercial Pilot for
the Airbus 319/320 family of aircrafts
Other Key Members of Management
Pradit Theekakul
Director, Executive Vice President—Administration and
Board of Directors / Senior President Office Director
30 years with the company
Peter Wiesner
Senior Vice President—Network Management
14 years with the company
Christophe Clarenc
Senior Vice President—Technical
10 years with the company
Ping na Thalang
Vice President—Corporate Safety
13 years with the company
M.L. Nandhika Varavarn
Vice President—Corporate Communications
15 years with the company
Narongchai Tanadchangsaeng
Vice President—Airport
1 year with the company
Ariya Prasarttong–Osoth
Vice President—Sales
20 years with the company
Viroj Satitharopagorn
Vice President—Accounting
19 years with the company
Prote Setsuwan
Vice President—Marketing
9 years with the company
Wg.Cdr. Saravoot Thonglek
Vice President—Flight Operations
10 years with the company
Kasem Akanesuwan
Vice President—Internal Audit and Compliance
17 years with the company
General Komkrich Sriyabhandha
Specialist – Policy and Strategy (Vice President)
9 years with the company
Anawat Leelawatwatana
Deputy Vice President—Finance / Corporate Secretary
2 years with the company
Sipornyada Pradchaya-attamethi
Deputy Vice President—Administration
26 years with the company
5
Four Key Pillars of Value
Boutique
Airline
3 Airports at Resort
Destinations
• Attractive and strong network
• Dominant player at Samui Airport
3 Airport-Related
Services at BKK Airport
Investment in Bangkok
Dusit Medical Services
(“BDMS”)
• Complementary & Diversified
source of revenue
• Steady dividends income
Fly Boutique, Feel Unique
6
Boutique brand differentiates Bangkok Airways
•
Personalized service with Thai Hospitality
•
Complimentary lounges for all passengers
•
Appetizing Asian style menus in all
flights
7
Boutique Airports
•
•
•
•
BA own and operate 3 airports located in Samui, Trat and Sukothai
Dominant player for routes from/to Samui
Strong position for further expansion of Samui as second hub
Samui is among the top tourist destinations in Thailand, with approximately one
million tourists arriving each year
Sukhothai
Serving 48,152 passengers in 2014
Trat
Samui
Serving 72,689 passengers in 2014
Serving 1.81 million passengers in 2014
8
Dominant Player at Samui Airport
•
•
Capitalizing on Samui Airport to develop more routes with little competition
Growing capacity from 36 fights to 50 flights per day
Passengers : Millions
1.42
Hong Kong
Chiang Mai
Bangkok
1.66
1.85
Pattaya
(U-Tapao)
1.81
Koh
Samui
2011
•
2012
2013
2014
Phuket
Kuala Lumpur
2014 flights share at Samui Airport
•
Singapore
Additional flights to accommodate excess
demands during peak period
Route
PG, 86%
TG, 6%
Silk Air, 3%
Fire fly, 3%
Other, 3%
Krabi
# Fights/
Week
Commencement
Frequency Increase for schedule flight
Samui-Pattaya
7 -- > 14
2015
Samui-Singapore
7 -- > 10
2015
SamuiKuala Lumpur
7 -- > 11
2015
9
Robust Route Network of Cultural and Leisure Destinations
24 Scheduled Destinations in 10 Countries Including
Thailand
Channel Breakdown
(% of Passengers)
Interline &
Code share,
18%
China
E-Commerce,
26%
Hong Kong
Mandalay Laos
Nay Pyi Taw
Chiang Rai Luang Prabang
Chiang Mai
Lampang Vientiane
Udon Thani
Myanmar
Station &Call
Center,
11%
Non-BSP
Agent,
3%
BSP Agent,
40%
GSA, 2%
Sukhothai
Yangon
Thailand
Mumbai
Bangkok
Bangladesh
Dhaka
Vietnam
Siem Reap
Cambodia
Pattaya
(U-Tapao)
India
Trat
(Koh Chang)
Phnom Penh
Samui
Male
Indian Ocean
Maldives
Phuket
Sales Offices
and Ticket
Counters
33 sales offices in 50 selling agents located in Asia,
Europe, and Australia
South China Sea
Krabi
Andaman Sea
Call Centers
Malaysia
24-hour Thailand-based call
center with various convenient
payment methods
Kuala Lumpur
Singapore
Bangkok Airways Airport
Present PG Network Routes
Internet
10
Code-shares Feed Traffic to the Network
Drawing Traffic from Global Markets without Investing in
Long-Haul Fleet
Sixteen Code-share Partners…
Since 2014
Since 2014
Since 2014
Since 2013
Since 2013
Since 2013
Since 2012
Since 2012
Since 2012
Since 2012
Since 2011
Since 2010
Since 2009
Since 2009
Since 20091
Since 2007
... And increasing
11
Fleet Well-Suited for Route Network
•
•
43
Expect to finalize Jet aircraft fleet selection in 2015
Intend to maintain 9 ATRs in the fleet
28
27
25
21
ATR 72-600
1
2
9
ATR 72-500
A320
A319
8
8
8
8
5
7
8
8
34
8
2012
10
2013
10
2014
10
Q1 2015
A319 is the
largest aircraft
type permitted
to land at Samui
Airport
2018
12
Airport Related Services
13
Airport Related Services
Meal Uplifted
7.5
(Millions)
8.6
9.0
2013
2014
1,231.4
1,350.0
2013
2014
90%
2.1
2.5
Q4 2013
Q4 2014
2012
Revenue
Bangkok Air Catering Co.,
Ltd. (“BAC”)
1 of 3 catering service providers at
Suvarnabhumi Airport (20 years concession)
21 airline customers
The only Kosher meal producer in SEA
(MB)
1,083.6
317.4
386.8
Q4 2013
Q4 2014
EBITDA, EBITDA Margin
2012
28.6%
(MB)
310.4
2012
26.5%
27.5%
325.8
372.0
2013
2014
90.9
40.9
Q4 2013
Q4 2014
2012
2013
2014
267.0
Net Income
(MB)
166.7
183.9
2012
2013
90.7
14.1
Q4 2013
Q4 2014
2014 14
Airport Related Services
Flight Handled
51.8
54.9
2013
2014
1,893.9
1,948.8
2013
2014
43.9
(,000s Flights)
90%
Worldwide Flight
Services Bangkok Air
Ground Handling Co.,
Ltd. (“BFS Ground”)
1 of 2 international ground service providers at
Suvarnabhumi Airport (20 years concession)
61 airline customers
The only ISAGO certified operator
14.2
13.9
Q4 2013
Q4 2014
2012
Revenue
(MB)
1,571.1
523.6
506.4
Q4 2013
Q4 2014
2012
EBITDA, EBITDA Margin
16.1%
(MB)
19.7%
373.9
252.5
114.4
Q4 2013
12.6%
246.0
58.5
Q4 2014
2012
Net Income
2013
2014
258.1
(MB)
148.1
111.5
73.1
27.5
Q4 2013
Q4 2014
2012
2013
2014
15
Airport Related Services
Cargo Handled and Capacity Utilization
(,000s tons, %)
92.3%
49%
WFS-PG Cargo Co., Ltd.
(“BFS Cargo”)
1 of 2 international cargo terminal service
providers at Suvarnabhumi Airport
54 airline customers
The only ISAGO certified operator
91.2
97.5
Q4 2013
Q4 2014
380.2
402.7
Q4 2013
Q4 2014
EBITDA, EBITDA Margin
349.9
371.5
2012
2013
2014
1,370.9
1,420.8
2012
2013
44.4%
(MB)
169.7
194.9
Q4 2013
Q4 2014
108.0
132.9
Q4 2013
Q4 2014
43.8%
608.1
622.8
2012
2013
372.0
389.7
2012
2013
Net Income
(MB)
67.6%
369.2
Revenue
(MB)
63.6%
1,557.7
2014
43.9%
684.1
2014
453.9
2014
16
Operation Highlight
Financial Highlight
17
2014 BA Highlights
July 2014
Award from Skytrax
“World’s Best Regional Airline”
and “Asia’s Best Regional Airline”
Chiang
Mai
Nov 2014
BA Listed in SET
Dec 2014
EGM Approved the
offset Retained losses
with share premium
& legal reserve
EGM
Nov 2014
First ATR72-600
Oct 2014
Chiang Mai become BA
third hub
Feb 2014
BA Signed Contract with ATR for 9 ATR 72-600
Nov 2014
Thai DCA approved the
increase number of flight
In/Out Samui airport from
36 to 50 flights per day.
18
2014 BA Highlights
July and Nov 2014
BA added one A320 and one ATR72-600 to its
fleet based on its fleet expansion plan
27
25
Aircrafts
31/12/2014
Aircrafts
1/1/2014
2014
BA added 3 airlines as new
code share partners
2014
BA launched 4 new routes
Chiang Mai - Phuket
Chiang Mai - Udon Thani
Chiang Mai - Yangon
Chiang Mai - Mandalay
& increased flight frequency
Bangkok - Samui
Bangkok - Chiang Rai
Bangkok – Krabi
New Route
Increased flight frequency
Mandalay
Chiang Rai
Chiang Mai
Udon Thani
Yangon
Bangkok
Samui
Phuket
Krabi
19
Operation Highlight
Aircraft Utilization
(Block Hour per Day)
9.2
Average Stage Length
(kilometers)
795
771
662
662
661
10.0
7.9
13.1
10.9
10.4
9.0
8.2
Q4 2013
Q4 2014
7.8
9.1
8.8
10.8
2012
8.9
9.9 10.1
2013 8.4
9.1 9.4
2014 7.8
2013
2014
5.1
Q4 2013
Q4 2014
2012
2013
2014
Q4 2013
Q4 2014
Airbus 320
Average Fare
Average Fuel Price
(THB)
(USD per barrel)
4,089
4,054
Airbus 319
127
124
4,040
2012
ATR 72
123
112
92
3,771
3,736
Q4 2013
Q4 2014
2012
2013
2014
Q4 2013
Q4 2014
2012
2013
2014
20
Operation Highlight
Passengers
2012–2014 Total CAGR: 15%
2012–2014 International CAGR: 17%
2012–2014 Domestic CAGR: 14%
(‘000)
2012–2014 Total CAGR: 24%
2012–2014 International CAGR: 21%
2012–2014 Domestic CAGR: 26%
RPK
(Millions)
4,790
3,691
4,173
3,631
1,055
959
299
769
2,672
3,119
Q4 2013
Q4 2014
2012
2013
Domestic
2014
297
417
420
578
1,400
1,668
Q4 2013
Q4 2014
2012
2013
Domestic
67%
2014
International
2012–2014 Total CAGR: 26%
2012–2014 International CAGR: 18%
2012–2014 Domestic CAGR: 32%
(Millions)
68%
65%
64%
68% 66%
2
55%
3
5,655
77%
75%
58%
4
58%
68%
5 61%
4,063
3,587
1,731
1,116
Q4 2013
2,209
ASK
67%
72%
1
998
International
1,482
1,091
714
3,487
Passenger Load Factor
(%)
2,405
1,006
1,255
387
868
1,068
2,759
1,302
Q4 2014
Domestic
2012
International
2013
2014
2,424
1,887
1,489
3,230
539
576
634
855
1,856
2,175
Q4 2013
Q4 2014
2012
2013
Domestic
International
2014
21
Advance Booking
1,050,000
1,028,006
1,012,245
986,526
1,000,000
967,477
962,970
958,775
950,000
900,000
914,148
852,552
850,000
800,000
814,767
700,000
889,193
837,152
818,181
823,653
780,377
772,316
750,000
941,186
875,949
771,237
824,978
809,820
782,132
744,892
727,586
765,664
754,632
725,123
650,000
600,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
2013
2014
2015
Booking for Jan & Feb 2015 is 11.4% growth from the same period of last year
22
Financial Highlight
Revenue
1,909
(MB)
2,301
447
1,091
2,684
504
845
2,656
486
1,832
Net Profit
(MB)
990
205
702
97
301
730
14,864
17,844
16,735
386
227
104
4,727
4,276
-283
Q4 2013
Airlines
Q4 2014
Airports
2012
2013
Airport-related services
2014
Q4 2013
Q4 2014
2012
2013
2014
Unallocated revenues
26.2%
23.4%
EBITDA & EBITDAR & EBITDAR Margin
18.9%
(MB)
4,780
4,754
4,110
3,401
3,249
2,356
1,006
1,392
514
Q4 2013
925
Q4 2014
2012
EBITDA
EBITDAR
2013
2014
23
Financial Highlight
RASK (THB)
CASK (THB)
4.5
4.4
4.2
4.5
3.4
3.4
3.1
3.9
4.0
3.2
3.3
2.3
1.7
1.5
1.0
Q4 2013
Q4 2013
Q4 2014
2012
2013
Q4 2014
2012
2014
2013
Consolidated
Admin Exp., 9%
Selling Exp., 8%
2014
2014
Consolidated
Company Only
Fuel 31%
COGS, 83%
2013
Pax. Services 15%
Salary & Wage 16%
AC Maintenance 12%
AC Lease 11%
Others
Company Only
Fuel 33%
Admin
Exp., 7%
Selling Exp.,
7%
COGS, 86%
Pax. Services 16%
Salary & Wage 14%
AC Maintenance 10%
AC Lease 11%
Others
24
Why Bangkok Airways?
Unique and
Growing
Network
Boutique
Model
Dominant Position
at Samui Airport
25% Stake in Property
Fund Generating
Strong Dividend Cash
Flow
Industry
Leading
Unit Margin
Samui
Diversified
Revenue
Streams
Additional Value
From Thai
Aviation
Growing
Dividend
Income
Airport-Related
Services
BGH
Strong
Capital
Appreciation
25
THANK YOU
Shareholders Structure
Pre-IPO
Post-IPO
No. of Shareholders : 1,409
No. of Shareholders: 14,630
Paid Up Capital : 1,580 MB
Paid Up Capital : 2,100 MB
as at Dec 8 ,2014
BDMS, 1.13%
Sahakol
Estate, 4.05%
Management
, 2.08%
Others ,
1.27%
Sahakol Estate, BDMS, 0.85%
3.04%
Management ,
1.07%
CREDIT SUISSE,
1.22%
BBL, 5.00%
Prasarttong Osoth Family,
91.47%
Others, 27.64%
Prasarttong Osoth Family,
61.18%
Major shareholders, BOD and Mgt. shares (62.74%)
are locked up for 6 months after IPO
27
Use of Proceeds
ATR 72-600
Increase
fleet
size
9
and/or
replacement of existing aircraft
Purchase of spare parts and
BA signed agreement to
purchase 9 ATR 72-600 aircraft.
provisions in relation to fleet
Q4/14
adjustment
Q1/15
Q3/15
Q4/15
Q1/16
Q2/16
Q4/16
Q1/17
Construction of a hangar at the
Suvarnabhumi
International
Airport
Improvements
in
Samui
Airport
Working capital
28