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Financial performance for 2Q2007 decrease more than 20%

BackMay 16, 2007


15 May 2007

Subject: Notification of information regarding a decrease of more than 20% on financial performance for the 2nd Quarter of fiscal year 2007 compared with the same period of previous year

To: President, The Stock Exchange of Thailand

According to the Stock Exchange of Thailand (SET)'s regulation, any listed companies with deviation on financial performance on quarterly basis more than 20% will have to provide detailed explanation for such deviation.

The financial statements for the 2nd Quarter of fiscal year 2007 (January 1st-March 31st,2007) of Airports of Thailand Public Company Limited and its subsidiaries (AOT) stated that total operating revenues were Baht 4,894.21 million.Total operating expenses were Baht 4,074.74 million. Operating income was Baht 819.47 million.Profit before interest and income tax expenses was Baht 1,367.96 million. Net profit was Baht 449.82 million which was a decrease of Baht 3,281.56 million or 87.94% from the 2nd Quarter of fiscal year 2006's net profit of Baht 3,731.38 million.

Please find the detailed explanation as follows:

1.Operating Revenues
An increase in total operating revenues of Baht 616.03 million or 14.40% from Baht 4,278.18 million in 2nd Quarter of fiscal year 2006 to Baht 4,894.21 million in 2nd Quarter of fiscal year 2007 consisted of:

- Aeronautical Revenues
As a result of AOT's traffic growth, the aeronautical revenues have increased Baht 964.95 million or 35.19% from Baht 3,707.06 million in 2nd Quarter of fiscal year 2006.The total aircraft movements and total passenger movements have increased about 12.36% and 7.71% YOY respectively. The key driver of the traffic growth was the Low Cost Carrier (LCC)'s traffic with the growth of 38.5% in LCC aircraft movements and 32.5% in LCC passenger movements.Besides the traffic growth, an increase in Passenger Service Charge (PSC) rate for international passengers from Baht 500 to Baht 700 and domestic passengers from Baht 50 to Baht 100, starting 1st February 2007, also increases aeronautical revenues.This charge would be included in the ticket prices.

- Non-aeronautical Revenues
The non-aeronautical revenues of Baht 1,187.15 million have decreased Baht 348.92 million or 22.72% from Baht 1,536.07 million in 2nd Quarter of fiscal year 2006.The resolution of the AOT Board of Director's meeting No. 10/2007 on 22nd March 2007 stated that the duty free contract between AOT and King Power Duty Free Plc. and commercial activities contract between AOT and King Power International Plc., which haven't been followed the Public-Private Joint Venture Act, were illegitimated and any commitments between these parties should be invalid.

Consequently, AOT would not recognized any revenues from King Power Duty Free Plc. and King Power International Plc. of Baht 1,101.11 million in 2nd Quarter of fiscal year 2007, Baht 834.55 million in 1st Quarter of fiscal year 2007, and Baht 20.87 million in fiscal year 2006 which totaled of Baht 1,956.53 million.

2.Operating Expenses
Operating Expenses have increased Baht 2,352.50 million or 136.59% from Baht 1,722.24 million in Q2/2006 to Baht 4,074.74 million in Q2/2007, mainly due to the commercial operations of Suvarnabhumi Airport since 28th September, 2006.The detailed explanation is as follows:

- Total depreciation and amortization of Suvarnabhumi Airport, Public Transportation Center and Suvarnabhumi Airport Hotel of Baht 1,902.08 million has increased Baht 1,578.33 million or 487.52% YOY as a result of the commercial operations of Suvarnabhumi Airport.

- Operating expenses have increased Baht 561.35 million or 86.50% YOY due to an increase in outsourced workers for Suvarnabhumi Airport of Baht 365.13 million, an increase in utilities expenses of Baht 171.04 million, as well as an increase in PSC collection fee, charged by the airlines, of Baht 23.40 million.

- Repair and maintenance expenses have increased Baht 104.37 million or 208.99% YOY due to an increase in repair and maintenance expenses on baggage handling conveyors of Baht 82.48 million, an increase in repair expenses for electronic equipment, elevators, escalators and moving sidewalks of Baht 17.02 million as well as an increase in sanitaryware of Baht 7.10 million.

3.Foreign Exchange Gain
Foreign Exchange Gain has dropped Baht 1,430.87 million or 77.42% from 1,848.31 in 2nd Quarter of fiscal year 2007 due to the decrease in the variation of the foreign exchange rate. The gap on the exchange rate between March 2007 to December 2006 was less than the gap on the exchange rate between March 2006 to December 2005. Consequently, gain on foreign exchange dropped Baht 1,831.18 million and loss on cross currency swap dropped Baht 400.31 million.

Please see exchange rate detail below:

Exchange Rate
Exchange Rate
Mar 2007
Mar 2006
Dec 2006
Dec 2005

4.Interest expenses
Interest expenses incurred in 2nd Quarter of fiscal year 2007 was Baht 576.08 million.This amount was the interest paid for loans borrowed for construction of Suvarnabhumi Airport and Suvarnabhumi Airport Hotel which was recognized as assets under construction in 2nd Quarter of fiscal year 2006

As a result, net profit has dropped Baht 3,281.56 million or87.94% YOY and earning per share has dropped to Baht 0.31 from Baht 2.61 in 2nd Quarter of fiscal year 2006.

Please be informed accordingly.


Yours sincerely,


(Porntip Kanchanasat)
Vice President of Accounting Department
Authorized person

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