Airports of Thailand : Management Discussion and Analysis Quarter 1 Ending 31 Dec 2020

Ref. No. 2049

10 February 2021

Subject: Management Discussion and Analysis of business operation and financial statements To: President,

The Stock Exchange of Thailand

Airports of Thailand Public Company Limited and its subsidiaries Management discussion and analysis of business operation and financial statements for the three-month period ended December 31st, 2020

Overall performance and significant events

The overall air traffic volume of Airports of Thailand Public Company Limited (AOT) during the period from October 2020 to December 2020 significantly decreased compared to the corresponding period of the prior year. This is due to the decrease in the number of flights and passengers impacted by the Coronavirus Disease 2019 (COVID-19) situation. The COVID-19 pandemic emerged overseas during the end of 2019 and began to spread to Thailand at the beginning of 2020. Although the domestic situation has gradually improved and the spread has been controlled in the country, there was a new wave of the pandemic in December 2020. Most of the new cases are located in Samut Sakhon, but the virus has spread to many other provinces. Globally, the COVID-19 pandemic remains on-going and the pandemic has been repeated in many counties. This has adversely affected tourism and airlines business all over the world.

AOT has put measures in place to provide assistance to the concessionaires and airlines affected by the COVID-19. On December 23rd, 2020, the AOT's Board of Directors approved relief measures to reduce the monthly and annual fixed compensation for the concessionaires from February 1st, 2021 to March 31st, 2022, which is calculated in accordance with the volume of air traffic for each airport. Most recently, on January 20th, 2021, the Board approved the extension of period to defer the payment of compensation, rental fees and service charges for the concessionaires and airlines affected by the COVID-19 situation of six airports under AOT's responsibility to lessen the burden of the concessionaires during the crisis. However, the relief measures must be in accordance with the terms and conditions prescribed by AOT.

In the first quarter of FY 2021, the air traffic volume of the six airports under AOT's responsibility totalled 104,336 flights, accounting for a 53.50% decrease compared to the corresponding period of the prior year, comprising 14,903 international flights and 89,433 domestic flights. The total number of passengers was 10.73 million, accounting for a 70.79% decrease compared to the corresponding period of the prior year, comprising 0.20 million international passengers and 10.53 million domestic passengers. The major decrease arose from international flights and passengers.

During the first quarter of FY 2021, AOT incurred net loss of Baht 3,441.98 million, which decreased by Baht 10,776.70 million or 146.93% compared to the corresponding period of the prior year in which net profit of Baht 7,334.72 million was generated. Total revenues decreased by Baht 14,376.63 million, total expenses decreased by Baht 1,364.47 million, and income tax decreased by Baht 2,783.00 million.

1. Analysis of operations

1.1 Operating results for the three-month period ended December 31st, 2020

Unit: Million Baht

Q1/2021	Q1/2020	Increase (decrease)	% YoY
Revenues from sales or services Aeronautical revenue Proportion Non-aeronautical revenue Proportion	2,176.28 889.91 41% 1,286.37 59%	16,104.68 9,005.56 56% 7,099.12 44%	(13,928.40) (8,115.65) (5,812.75)	(86.49) (90.12) (81.88)
Other income	563.85	1,012.08	(448.23)	(44.29)
Total revenues	2,740.13	17,116.76	(14,376.63)	(83.99)
Less Total expenses	6,387.53	7,752.00	(1,364.47)	(17.60)
Profit (loss) from operating activities	(3,647.40)	9,364.76	(13,012.16)	(138.95)
Less Finance cost	748.39	177.62	570.77	321.34
Profit (loss) before income tax	(4,395.79)	9,187.14	(13,582.93)	(147.85)
Less Income tax expenses (revenues)	(944.54)	1,838.46	(2,783.00)	(151.38)
Net profit (loss) for the period	(3,451.25)	7,348.68	(10,799.93)	(146.96)

1.1 Operating results for the three-month period ended December 31st, 2020 (cont'd)

Unit: Million Baht

Q1/2021	Q1/2020	Increase (decrease)	% YoY
Profit (loss) attributable to: Equity holders of the Company Non-controlling interests of the subsidiaries	(3,441.98) (9.27)	7,334.72 13.96	(10,776.70) (23.23)	(146.93) (166.40)
Earnings (loss) per share (Baht)	(0.24)	0.51	(0.75)	(147.06)

AOT's net loss for the three-month period ended December 31st, 2020 was Baht 3,441.98 million, which decreased by Baht 10,776.70 million or 146.93% compared to the corresponding period of the prior year in which net profit of Baht 7,334.72 million was generated. Revenues from sales or services decreased by Baht 13,928.40 million or 86.49% as a result of a decrease in aeronautical revenue of Baht 8,115.65 million or 90.12% and non-aeronautical revenue of Baht 5,812.75 million or 81.88% because of the decline in the number of flights and passengers. Other income decreased by Baht 448.23 million or 44.29%. Total expenses decreased by Baht 1,364.47 million or 17.60% mainly due to a decrease in state property rental. However, finance cost increased by Baht 570.77 million due to an increase in interest from lease liabilities. Income tax decreased by Baht 2,783.00 million or 151.38% which was in line with a decrease in operating results.

1.2 Aeronautical Revenue

Unit: Million Baht

Q1/2021	Q1/2020	Increase (decrease)	%YoY
Landing and parking charges Departure passenger service charges Aircraft service charges	285.40 531.52 72.99	1,911.01 6,879.17 215.38	(1,625.61) (6,347.65) (142.39)	(85.07) (92.27) (66.11)
Total	889.91	9,005.56	(8,115.65)	(90.12)

1.2 Aeronautical Revenue (cont'd)

Q1/2021

Q1/2020

A portion of aeronautical revenue in each type in the first quarter of FY 2021 differed significantly from that of the corresponding period of the prior year. The majority of aeronautical revenue was departure passenger service charges of which the portion dramatically decreased from the first quarter of 2020 due to a decrease in the number of passengers.

Aeronautical revenue of Baht 889.91 million decreased by Baht 8,115.65 million or 90.12% compared to the corresponding period of the prior year mainly because of the COVID-19 pandemic since the beginning of 2020 which affected the inbound and outbound travel in Thailand as well as other countries worldwide. Departure passenger service charges decreased by Baht 6,347.65 million or 92.27% because of a 70.79% decrease in the number of passengers in six airports. Moreover, aircraft service charges decreased by Baht 1,625.61 million or 85.07%.

1.3 Non-Aeronautical Revenue

Unit: Million Baht

Q1/2021	Q1/2020	Increase (decrease)	%YoY
Office and state property rents Service revenues Concession revenues	364.30 563.91 358.16	584.05 2,111.65 4,403.42	(219.75) (1,547.74) (4,045.26)	(37.63) (73.30) (91.87)
Total	1,286.37	7,099.12	(5,812.75)	(81.88)