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20140528 nok

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20140528 nok

  1. 1. 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.
  2. 2. FreeFlexibleFree 15 kg “Serve with Nok Kanom”“Seat Selection”“Free of charge at least a weight of 15 kg. ” Remark: 1/ Fleet number as of 30 April 2014 2/ Routes is as of 30 April 2014 “Wi-Fi on Board target to launch in Q2/2014” 3 Model Boeing 737-800 ATR 72 - 500 Fleet/1 (Aircrafts) 15 2 Capacity (Seats) 186 - 189 66 - 72
  3. 3. # Primary Routes Current Weekly Flight Frequency* 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 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 23 Bangkok - Yangon 14Flight Schedule for Summer 2014 4
  4. 4. Unit: % Unit: % As of 31 March 2014 Web site and Electronics 63% Call Center 10% Station 11% Travel Agent 10% Corporate and Group Sales 5% Other 1% Credit card 57% 7- eleven 17% Cash 11% Direct Debit 8% ATM 6% Others 1% 5
  5. 5. 3,282 6,784 9,816 11,538 15,191 17,988 19,35751% 50% 42% 55% 65% 79% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% - 5,000 10,000 15,000 20,000 25,000 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 No. of Passenger and Cabin Factor for Don Meuang - Rangoon Cabin Factor No of PassengerCabin Factor Cabin FactorCabin FactorNo. of Passenger • High awareness of NOK in Myanmar Market • Cabin Factor reached above 80% • First flight 1 November 2013 • Started 2nd daily flight from Jan 2014, able to serve both Business and Leisure sectors 6
  6. 6. 3.13 4.15 5.89 1.43 1.77 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 2011 2012 2013 Q1/2013 Q1/2014 1,014 993 1,038 1,202 1,306 88% 86% 84% 79% 80% 0 200 400 600 800 1,000 1,200 1,400 25% 35% 45% 55% 65% 75% 85% 95% 1Q13 2Q13 3Q13 4Q13 1Q14 ASK (Mil. Seat-Km.) Cabin Factor (%) 7 Unit: Million 7 Unit: Mil. Seat-Km. • Strong Passenger Growth since 2011 • 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 • 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. Unit: %
  7. 7. 4,416 5,993 8,040 1,999 2,188 927 1,183 1,321 331 347 217 470 928 185 267 - 2,000 4,000 6,000 8,000 10,000 12,000 2011 2012 2013 Q1/13 Q1/14 Feeder Routes Secondary Routes Primary Routes Unit: THB Million • Continuous Revenue Growth • 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. 6,037 8,260 11,315 2,826 3,136 - 2,000 4,000 6,000 8,000 10,000 12,000 2011 2012 2013 Q1/13 Q1/14 Unit: THB Million • 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. 8
  8. 8. 5,785 7,740 10,215 2,394 3,086 - 2,000 4,000 6,000 8,000 10,000 12,000 2011 2012 2013 Q1/13 Q1/14 Unit: THB Million Unit: THB Million • Total cost increased in line with production • Total cost increase 28.9% YoY. • Increase flight frequency and fleet expansion led to raise in variable cost and fixed cost. • Net Profit interrupted • Demand slowdown from political situation • Launched Promotion to keep competitiveness and boost up cabin factor from both full services and LCC • Passenger returned to travel due to long holiday e.g. Songkran Festival, May Day etc. • Cabin factor bounced back above 80% level on average in April Q2/2014 Outlook (Apr – 1st half of May) 9 Q1/2013 Q1/2014 Net Profit (Mil. THB) 416 41 4M/2013 4M/2014 No. of Pax (Mil.) 1.88 2.38
  9. 9. 2.63 2.77 2.372.39 2.35 2.37 1.54 1.51 1.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2013 Q1/2013 Q1/2014 RASK CASK CASK exc. Fuel Unit: THB/Seat/Km. Unit: THB/Seat/Km. 10 • RASK dropped due to… • Political unrested and economic slowdown • More competition in the market. • 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. 2.372.35 • 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. 0.84 0.87 0.88 0.85 0.45 0.48 0.18 0.17 0.00 0.50 1.00 1.50 2.00 2.50 Q1/2013 Q1/2014 SG&A Fixed Cost Other Variable Cost Fuel Cost 2.35 2.37Unit: THB/Seat/Km.
  10. 10. - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 No. of Pax 2008 - 2014 “Oil Price Shock 2008” “ Shut down Airport 2008” “ Mega Flood 2011” “ Dissolve of the Parliament May 2011”“ Political Unrested May 2010” “ Political Unrested May 2014” Thailand has been through many turbulence but…… • Passenger have been growing in every crisis • Trend of urbanization and middle class income growth 11
  11. 11. Induce advance booking demand Nok Baby and “the Angel” Enhance more convenient to tourist by “Fly ‘n’ Ride and “Fly ‘n’ Ferry” “1st in the World Reality Show recruit Cabin Crew” 12
  12. 12. 4,543 4,584 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2013 Q1/2014 1,728 1,842 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2013 Q1/2014 6,272 6,426 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2013 Q1/2014 Unit: THB Million Unit: THB Million Unit: THB Million 57% 50% 60% 0% 10% 20% 30% 40% 50% 60% 70% 2011 2012 2013 Dividend per Share (THB/Share) 0.23 0.50 1.031/ 13
  13. 13. 14 Bangkok Tokyo Osaka Seoul New JV with Scoot • NOK will hold not more than 51% • Initial Investment 2,000 million THB. • Independent Airlines focusing on medium- haul flight • International Expansion to key profitable destinations e.g. Tokyo, Osaka, Hong Kong, Seoul and Beijing Beijing Hong Kong 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 market- based rates to minimize costs and speed up initial set-up
  14. 14. Bangkok Beijing Population 20 Million GDP per capita 13,797 USD Hong Kong Population 7 Million GDP per capita 36,667 USD Japan Population 128 Million GDP per capita 46,736 USD South Korea Population 49 Million GDP per capita 23,113 USD Population 65 Million GDP per capital 6,572 USD 0 20 40 60 80 100 0% 5% 10% 15% 20% 25% China Japan Malaysia Korea India Singapore Australia Hong Kong Indonesia Thailand TouristSpending(Mil.USD) % of No. of tourist share in Thailand 50 20 10 A circle represents No. of outbound Tourist Unit: Million Travelers Source: World Travel Monitor 2013 , IPK International 15
  15. 15. 41% 18% 18% 9% 8% 7% THAI ANA JAL Delta Nok Scoot Air Asia X 48% 21% 21% 10% Before Low Cost entering to Market Low Cost Carriers Capacity added account only for 15% 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 1.84 1.96 2.29 0.0 0.5 1.0 1.5 2.0 2.5 2011 2012 2013 Unit: Millions 3/ 16
  16. 16. Service Nok Scoot 25,000 9,000 Full service Airlines Low Cost Airlines *Indicative Price from BKK – KL – NRT **NokScoot estimated price range 0 10,000 20,000 30,000 40,000 50,000 60,000 ANA Japan Airlines Thai Airways Delta Nok Scoot Air Asia X* 53,000 15,000 30,990 14,555 20,750 8,550 35,000 15,000 49,080 16,700 25,000 9,000 NokScoot ** Unit: Baht 17
  17. 17. • 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. NOKScoot JV Business Plan 2 4 5 6 7 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Fleet Plan (B777-200) 18

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