analyst meeting march 2015 - ba.listedcompany.com filegaruda indonesia become our 16 th code share...
TRANSCRIPT
Analyst Meeting
March 2015
1
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
BA Update
Nov 2014
BA added the first ATR 72-600 to its fleet. Four more ATR 72-600 to be delivered in 2015
1
3
About the ATR 72-600
Passenger capacity: 70 seats
Engines: Pratt & Whitney 127M
Maximum takeoff power: 2,750 horsepower per engine
Maximum takeoff weight: 23,000 kg
Maximum load: 7,500 kg Maximum flight range when fully loaded: 900 nautical miles (1,665 km)
BA Update
Nov 2014
Chiang Rai international airport
- 25 seats Blue Ribbon Club lounge
for BA’Flyer Bonus Premier members
and their accompanies
2
4
Dec 2014
Garuda Indonesia become our
16th code share partner on routes
Bangkok – Samui
Bangkok – Phuket
Bangkok – Krabi
Bangkok – Chiang Mai
Bangkok – Chiang Rai Bangkok – Phnom Penh
Bangkok – Udon Thani Bangkok – Luang Prabang
Bangkok – Lampang Bangkok – Dhaka
3
BA Update
Dec 2014
Trat Airport was awarded for
outstanding EIA Monitoring
Awards for four consecutive years
4
5
Feb 2015
BA added the second ATR 72-600 to
its fleet. This ATR 72-600 will be
serving on routes such as Samui,
Sukhothai, Trat, Lampang, Luang
Prabang, Yangon and Siem Reap
5
BA Update
6
Feb 2015
BA Launches TVC “ Entire journey of Happiness” presented by YAYA
6
BA Update
7
Feb 2015
Bangkok Airways Holding set up a wholly owned
subsidiary “Gourmet Primo” . Target to operate by end of year 2015
Pre cooking items & Pre cutting items
7
2014 BA Highlights
Feb 2014
BA Sign Contract with ATR for 9 ATR 72-600 8
July 2014
Award from Skytrax
“World’s Best Regional Airline”
and “Asia’s Best Regional Airline”
Oct 2014
Chiang Mai will become BA third hub
Chiang Mai
Nov 2014
Thai DAC approved the
increase number of flight
In/Out Samui airport from 36 to 50 flights per day.
Nov 2014 First ATR72-600
Dec 2014
EGM Approved the
offset Retained losses
with share premium & legal reserve EGM
Nov 2014 BA Listed in SET
9
25Aircrafts
1/1/2014
31/12/2014
July and Nov 2014
BA added one A320 and one ATR72-600 to its
fleet based on its fleet expansion plan
2014
BA added 3 airlines as code
share partner
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
Krabi
Samui
Udon Thani
Yangon
Phuket
Mandalay
Bangkok
Chiang Mai
Chiang Rai
27Aircrafts
2014 BA Highlights
BA Offer
10
Flyer Bonus Birthday Surprise Bonus 2015!
Validity: January 1 to December 31, 2015
Introduce Car rental services
on Bangkokair.com
11
BA Offer
BA Offer
12
BA Offer
13
14
Use of IPO proceeds
Use of Proceeds
Working capital
Q4/14 Q1/15 Q3/15 Q4/15 Q1/16 Q2/16 Q4/16 Q1/17
9
Increase fleet size and/or
replacement of existing aircraft
Purchase of spare parts and
provisions in relation to fleet
adjustment
Construction of a hangar at the
Suvarnabhumi International
Airport
Improvements in Samui Airport
BA signed agreement to purchase
9 ATR 72-600 aircraft.
ATR 72-600
15
By Changi Airport consultant
Fleet Plans
16
21 25
27
43
2012 2013 2014 2018
Average of 3-4 aircraft per year
…………..
BA fleet intend to expand our fleet to 43
aircraft by year 2018. We have contacted and
discussed with major aircraft manufacturers
to compare and select the suitable aircraft for
our fleet.
Fleet Well-Suited for Route Network
17
2
8
8
10
21
25 27 28
2012 2013 2014 2015
A320
A319
ATR 72-500
8
5
8
8
7
10
1
8
8
10
ATR 72-600
Feb/
Operation Highlight
Financial Highlight
18
Operation HighlightAverage Stage Length(kilometers)
Aircraft Utilization (Block Hour per Day)
Average Fuel Price(USD per barrel)
19
662
795
662 661
771
Q4 2013 Q4 2014 2012 2013 2014
4,054
3,736
4,0894,040
3,771
Q4 2013 Q4 2014 2012 2013 2014
Average Fare(THB)
124
92
127 123 112
Q4 2013 Q4 2014 2012 2013 2014
9.2 7.9
10.0 9.1 8.8
Q4 2013 Q4 2014 2012 2013 20149.0
7.8
10.9 9.9
9.1
13.1
10.4 10.8
10.1 9.4
8.2
5.1
8.9 8.4
7.8
Q4 2013 Q4 2014 2012 2013 2014
Airbus 320 Airbus 319 ATR 72
Operation Highlight
Passenger Load Factor(%)
20
769 868
2,672 3,119 3,487
299 387
959 1,055
1,302
1,068 1,255
3,631 4,173
4,790
Q4 2013 Q4 2014 2012 2013 2014
Domestic International
Passengers(‘000)
576 855 1,856 2,175
3,230
539 634
1,731 1,887
2,424
1,116 1,489
3,587
4,063
5,655
Q4 2013 Q4 2014 2012 2013 2014
Domestic International
ASK(Millions)
417 578 1,400 1,668
2,209
297 420
1,006 1,091
1,482
714 998
2,405
2,759
3,691
Q4 2013 Q4 2014 2012 2013 2014
Domestic International
RPK(Millions)
64%
67% 67% 68%
65%
1 2 3 4 5
72%68%
75% 77%
68%
55%
66%
58% 58%61%
Q4 2013 Q4 2014 2012 2013 2014
Domestic International
2012–2014 Total CAGR: 15%
2012–2014 International CAGR: 17%
2012–2014 Domestic CAGR: 14%
2012–2014 Total CAGR: 24%
2012–2014 International CAGR: 21%
2012–2014 Domestic CAGR: 26%
2012–2014 Total CAGR: 26%
2012–2014 International CAGR: 18%
2012–2014 Domestic CAGR: 32%
Advance Booking
As of Feb 2015, Our booking growth 16% YoY
21
780,377
772,316
744,892
725,123
727,586
771,237
814,767
809,820
852,552
914,148
962,970
986,526
875,949
837,152
818,181
782,132
754,632
765,664
823,653
824,978
889,193
958,775
1,012,245
1,028,006
941,186
967,477
600,000
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
1,050,000
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
26.2% 23.4%18.9%
1 2 3
Financial HighlightRevenue(MB)
Net Profit(MB)
22
4,276 4,727
14,864 16,735 17,844
97 104
447
486 504
702 730
2,301
2,656 2,684
205301
1,909
845 1,091
Q4 2013 Q4 2014 2012 2013 2014
Airlines Airports Airport-related services Unallocated revenues
-283
227
1,832
990
386
Q4 2013 Q4 2014 2012 2013 2014
1,006
514
3,401 3,249
2,356
1,392925
4,754 4,780
4,110
Q4 2013 Q4 2014 2012 2013 2014
EBITDA EBITDAR
EBITDA & EBITDAR(MB)
2014
Fuel 33%
Pax. Services 16%
Salary & Wage 14%
AC Maintenance 10%
AC Lease 11%
Others
Company OnlyConsolidated
Company Only
Financial Highlight
23
COGS, 86%
Selling Exp.,
7%
Admin
Exp., 7%
COGS, 83%
Selling Exp., 8%
Admin Exp., 9%
2013
Consolidated
Fuel 31%
Pax. Services 15%
Salary & Wage 16%
AC Maintenance 12%
AC Lease 11%
Others
Q4 2013 Q4 2014 2012 2013 2014
3.1
2.3
1.71.5
1.0
4.2
3.2
3.9 4.0
3.3
4.4
3.4
4.5 4.5
3.4
Q4 2013 Q4 2014 2012 2013 2014
RASK THB CASK THB
Airport Related Services
24
Airport Related Services
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
90%
Meal Uplifted(Millions)
25
Revenue(THB)
EBITDA(THB)
Net Income(THB)
317.4 386.8
1,083.61,231.4 1,350.0
Q4 2013 Q4 2014 2012 2013 2014
14.1
90.7
166.7183.9
267.0
Q4 2013 Q4 2014 2012 2013 2014
2.1 2.5
7.58.6 9.0
Q4 2013 Q4 2014 2012 2013 2014
40.990.9
310.4 325.8372.0
Q4 2013 Q4 2014 2012 2013 2014
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
Airport Related Services
90%
Revenue(THB)
Net Income(THB)
Flight Handled(,000s Flights)
26
14.2 13.9
43.9
51.8 54.9
Q4 2013 Q4 2014 2012 2013 2014
523.6 506.4
1,571.1
1,893.9 1,948.8
Q4 2013 Q4 2014 2012 2013 2014
114.4
58.5
252.5
373.9
246.0
Q4 2013 Q4 2014 2012 2013 2014
73.1
27.5
148.1
258.1
111.5
Q4 2013 Q4 2014 2012 2013 2014
EBITDA(THB)
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
Airport Related Services
49%
Cargo Handled and Capacity Utilization(,000s tons, %)
27
Revenue(THB)
Net Income(THB)
16.6% 17.7%
92.3%
63.6% 67.6%
Q4 2013 Q4 2014 2012 2013 2014
91.2 97.5
369.2 349.9 371.5
Q4 2013 Q4 2014 2012 2013 2014
380.2 402.7
1,370.9 1,420.81,557.7
Q4 2013 Q4 2014 2012 2013 2014
169.7 194.9
608.1 622.8684.1
Q4 2013 Q4 2014 2012 2013 2014
108.0 132.9
372.0 389.7453.9
Q4 2013 Q4 2014 2012 2013 2014
EBITDA(THB)
Increase Capacity from 400,000 to 550,000 Ton in 2013
Appendix
28
Long History of Success
Airport Related ServicesBoutique Airline Airport
2006
Entered into 20 year concession agreements for cargo services, ground services and catering operations at Suvarnabhumi International Airport
1989
Commenced operations at Samui Airport and received approval to fly first route (BKK-Samui)
2006
Listed Samui Property Fund on SET; retained a 25% stake
IPO on the SET
2004
Added Airbus A320 aircraft to fleet, reducing CASK and expanding international destinations
2007
Added Airbus A319 aircraft to fleet, increasing passenger capacity to most profitable destination—Samui
1994
Added ATR aircraft to fleet
1986
Commenced scheduled passenger flight service under the name “Bangkok Airways”
2013
Celebrated 45th
Anniversary
2014
Ordered 9 new ATR 72-600s
2014
29
Corporate Structure
Bangkok Airways Public Co., Ltd.
WFS-PG Cargo Co.,Ltd
Samui Airport Property Fund
Bangkok Air Catering Phuket
Co., Ltd.
SA Services Co., Ltd.
BAC Gourmet House Co., Ltd.
BFS Cargo DMK Co., Ltd.
90.00% 90.00% 99.99% 99.99% 49.00% 25.00%
69.99% 99.99%
99.99% 51.00%
49.00%
Bangkok Air Catering Co., Ltd.
Worldwide Flights Services
Bangkok Air Ground Handling
Co., Ltd
30
Bangkok Airways Holding Co., Ltd.
Bangkok Airways Ground Services
Co., Ltd.
Gourmet PrimoCo., Ltd.
99.99%
Competitive Strengths
Boutique Model: Creating a distinct and enhanced flying experience
1
Tourism Industry: Well positioned for tourism growth in Thailand and Southeast Asia
2
Samui Airport: Dominant Player for routes from/to Samui
3
Route Network: Cultural and leisure destinations across Southeast Asia
4
Code-shares: International code-share partners feed additional traffic
5
Distribution: Extensive reach to domestic and international passengers
6
Fleet: Reliable, modern and fuel-efficient fleet7
Airport-related Businesses: Additional sources of diversified revenue
8
Management: Highly experienced, with a proven track record
9
31
Shareholders Structure
Pre-IPO
No. of Shareholders : 1,409
Paid Up Capital : 1,580 MB
Post-IPO
No. of Shareholders: 15,137
Paid Up Capital : 2,100 MB
Prasarttong
- Osoth
Family,
91.47%
Sahakol
Estate,
4.05%
BDMS,
1.13%Management
,
2.08% Others,
1.27%
Prasarttong -
Osoth
Family,
60.96%
BBL, 5.00%
CREDIT
SUISSE,
3.19%
Sahakol
Estate,
3.04%
BDMS,
0.85% Management ,
1.04%
Others,
25.91%
as at Nov 3 ,2014
32
Major shareholders, BOD and Mgt. shares (62.74%) are locked up for 6 months after IPO
Route Map24 Scheduled Destinations in 10 Countries Including Thailand
China
Hong
Kong
Malaysia
Singapore
South China SeaKrabi
Samui
Siem Reap
Cambodia
Phnom Penh
Vietnam
Udon ThaniLampang
Nay Pyi Taw
Vientiane
Luang Prabang
Laos
Myanmar
Yangon Sukhothai
Thaila
nd
Chiang Rai
Andaman Sea
Phuket
Trat
(Koh Chang)
Pattaya
(U-Tapao)
Kuala Lumpur
Bangladesh
Dhaka
India
Male
Indian Ocean
Mumbai
Maldives
Mandalay
Bangk
ok
Chiang Mai
Code Share - Cost-effective Method of Feeding Traffic
from Global Markets without Investing in Long-Haul Fleet
China
Hong Kong
Malaysia
Singapore
South China SeaKrabi
Samui
Siem Reap
Cambodia
Phnom Penh
Vietnam
Udon Thani
Lampang
Nay Pyi Taw
Vientiane
Luang Prabang
Laos
Myanmar
Yangon Sukhothai
Thailand
Chiang Rai
Andaman Sea
Phuket
Trat
(Koh Chang)
Pattaya
(U-Tapao)
Kuala Lumpur
Bangladesh
Dhaka
India
Male
MaldivesIndian Ocean
Mumbai
Mandalay
Bangkok
Chiang Mai
MuscatAbu Dhabi
U.A.E.
Oman
Tokyo(Narita and
Haneda)
Japan
Osaka
Future PG Network RoutesCode-share Routes Operated by Etihad AirwaysCode-share Routes Operated by Malaysia AirlinesCode-share Routes Operated by SilkAirCode-share Routes Operated by Japan Airlines
Present PG Network RoutesBangkok Airways Airport
Bangkok Airways Route Map
Bangkok Airways Airport Future PG Network RoutesPresent PG Network Routes 33
BA have 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
Samui
Trat
Sukhothai
Boutique Airports
34
THANK YOU
35