Airports of Thailand Public : Management Discussion and Analysis Quarter 3 Ending 30 Jun 2021

Ref. No. 10768

11 August 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 and nine-month periods ended June 30th, 2021

Overall performance and significant events

The overall air traffic volume of Airports of Thailand Public Company Limited (AOT) from October 2020 to June 2021 significantly decreased compared to the corresponding period of the prior year. This is due to the ongoing international air travel restriction measures in many countries, including Thailand, to curb the spreading of the Coronavirus Disease 2019 (COVID-19). As a result, the overall number of international flights and passengers decreased. The second and third waves of the COVID-19 pandemic in the country affected the recovery rate of domestic travel which have also caused a decrease in the number of domestic flights and passengers. Due to the domestic pandemic situation, the government has accelerated the procurement of the COVID-19 vaccine and started vaccinating people on June 7th, 2021. Furthermore, the government also continuously imposed measures to alleviate and recover the Thai economy, including developing a policy to reopen the borders to welcome foreign tourists who met the conditions and requirements whereby Phuket has been used as a pilot province under the "Phuket Sandbox" project since July 1st, 2021. AOT is ready to accommodate foreign tourists by providing the facilities and authorized officials to advise passengers on the passenger drop off process, document and passport checking process, body temperature check, COVID-19 testing, hygiene and sanitation protocols, social distancing, and strict compliance with preventive and monitoring measures of COVID-19 in accordance with public health measure to build confidence of passengers and airport customers.

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In the current situation, AOT continuously imposes measures to assist the concessionaires and airlines affected by the COVID-19 for six airports under AOT's responsibility in lessening their burden during the crisis period. However, the assistance measures must be in accordance with the terms and conditions prescribed by AOT

During the nine-month period ended June 30th, 2021, the air traffic volume of the six airports under AOT's responsibility decreased by 50.42% or 217,579 flights compared to that of the corresponding period of the prior year, comprising 48,716 international flights and 168,863 domestic flights. The total number of passengers decreased by 70.81% or 19.02 million compared to that of the corresponding period of the prior year, comprising 0.65 million international passengers and 18.37 million domestic passengers.

During the third quarter of FY 2021 (April 1st, 2021 - June 30th, 2021) AOT's operating results decreased by Baht 1,144.57 million compared to, the corresponding period of the prior year of which net loss was Baht 2,933.90 million. Total revenues increased by Baht 157.76 million and, total expenses increased by Baht 845.48 million. In addition, income tax revenues increased by Baht 123.25 million which was in line with a decrease in operating results.

1. Analysis of operations

1.1 Operating results for the three-month period ended June 30th, 2021

Unit: Million Baht

	Q3/2021	Q3/2020	Increase	% YoY
			(decrease)
Revenues from sales or services	1,666.51	1,319.46	347.05	26.30
Aeronautical revenue	501.92	211.70	290.22	137.09
Portion	30%	16%
Non-aeronautical revenue	1,164.59	1,107.76	56.83	5.13
Portion	70%	84%
Other income	231.00	420.29	(189.29)	(45.04)
Total revenues	1,897.51	1,739.75	157.76	9.07
LessTotal expenses	6,152.99	5,307.51	845.48	15.93
Operating Loss	(4,255.48)	(3,567.76)	(687.72)	(19.28)

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1.1 Operating results for the three-month period ended June 30th, 2021 (cont'd)

Unit: Million Baht

	Q3/2021	Q3/2020	Increase	% YoY
			(decrease)
LessShare of loss from investment in
associate	0.04	-	0.04	100.00
LessFinance cost	740.22	154.66	585.56	378.61

Loss before income tax	(4,995.74)	(3,722.42)	(1,273.32)	(34.21)
AddIncome tax revenues	884.68	761.43	123.25	16.19
Net loss for the period	(4,111.06)	(2,960.99)	(1,150.07)	(38.84)
Loss attributable to:
Equity holders of the Company	(4,078.47)	(2,933.90)	(1,144.57)	(39.01)
Non-controlling interests of the
subsidiaries	(32.59)	(27.09)	(5.50)	(20.30)
Earnings (loss) per share (Baht)	(0.29)	(0.21)	(0.08)	(38.10)

For the three-month period ended June 30th, 2021, AOT's operating results decreased by Baht 1,144.57 million, compared to the corresponding period of the prior year of which net loss was Baht 2,933.90 million. Revenue from sales or services increased by Baht 347.05 million or 26.30% as a result of an increase in aeronautical revenue of Baht 290.22 million or 137.09% and non- aeronautical revenue of Baht 56.83 million or 5.13% because of the rise in the number of flights and passengers. However, other income decreased by Baht 189.29 million or 45.04%. Total expenses increased by Baht 845.48 million or 15.93% mainly due to a rise in employee benefit expenses, depreciation and amortisation expenses and loss on foreign exchange while state property rental, repairs and maintenance and other expenses decreased. Finance cost increased by Baht 585.56 million or 378.61% due to higher interest expenses on lease liabilities. Income tax revenues increased by Baht 123.25 million or 16.19%, which was in line with a decrease in operating results.

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1.2 Operating results for the nine-month period ended June 30th, 2021

Unit: Million Baht

		Oct'20 -		Oct'19 -	Increase		% YoY
		Jun'21		Jun'20	(decrease)
Revenues from sales or services	5,620.39		29,326.24	(23,705.85)		(80.83)
	Aeronautical revenue	1,964.20	15,959.92	(13,995.72)		(87.69)
	Portion	35%		54%
	Non-aeronautical revenue	3,656.19		13,366.32	(9,710.13)		(72.65)
	Portion	65%		46%
Other income	743.30	1,848.52	(1,105.22)		(59.79)
Total revenues	6,363.69	31,174.76	(24,811.07)		(79.59)
LessTotal expenses	18,096.88		20,629.79	(2,532.91)		(12.28)
Operating profit (loss)	(11,733.19)		10,544.97	(22,278.16)		(211.27)
LessShare of loss from investment in
	associate	0.07	-	0.07	100.00
LessFinance cost	2,231.43		498.37	1,733.06		347.75
Profit (loss) before income tax	(13,964.69)		10,046.60	(24,011.29)		(239.00)
LessIncome tax expenses (revenues)	(2,752.34)		2,011.32	(4,763.66)	(236.84)
Net profit (loss) for the period	(11,212.35)		8,035.28	(19,247.63)		(239.54)
Profit (loss) attributable to:
	Equity holders of the Company	(11,164.54)		8,048.46	(19,213.00)		(238.72)
	Non-controlling interests of the	(47.81)		(13.18)	(34.63)		(262.75)
	subsidiaries
Earnings (loss) per share (Baht)	(0.78)		0.56	(1.34)		(239.29)

For the nine-month period ended June 30th, 2021, AOT had net loss of Baht 11,164.54 million, while net profit of the corresponding period of the prior year was Baht 8,048.46 million. Revenue from sales or services decreased by Baht 23,705.85 million or 80.83% as a result of a decrease in aeronautical revenue of Baht 13,995.72 million or 87.69% and non-aeronautical revenue

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of Baht 9,710.13 million or 72.65% because of the decline in the number of flights and passengers. Other income decreased by Baht 1,105.22 million or 59.79%. Total expenses decreased by Baht

2,532.91 million or 12.28% mainly due to a drop in state property rental, outsourcing expenses, other expenses and repairs and maintenance while depreciation and amortisation expenses and employee benefit expenses increased. In addition, finance cost increased by Baht 1,733.06 million or 347.75% due to an increase in interest expenses on lease liabilities. Income tax revenues increased by Baht 4,763.66 million or 236.84%, which was in line with a decrease in operating results.

1.3 Aeronautical Revenue

Unit: Million Baht

	For the three-month period	For the nine-month period
	Q3/2021	Q3/2020	Increase	%YoY	Oct'20 -	Oct'19 -	Increase		%YoY
			(decrease)		Jun'21	Jun'20	(decrease)
Landing and
parking charges	244.92	74.88	170.04	227.08	775.99	3,569.90	(2,793.91)		(78.26)
Departure
passenger
service charges	211.96	115.68	96.28	83.23	1,017.16	11,959.96	(10,942.80)		(91.50)
Aircraft service
charges	45.04	21.14	23.90	113.06	171.05	430.06	(259.01)		(60.23)
Total	501.92	211.70	290.22	137.09	1,964.20	15,959.92	(13,995.72)		(87.69)
	Q3/2021				Q3/2020

A proportion of aeronautical revenue in each type of the third quarter of FY 2021 differed from that of the corresponding period of the prior year. The majority of aeronautical revenue came from landing and parking charges and departure passenger service charges.