ข่าวแจ้งตลาดหลักทรัพย์

MD.026/2010 February 18, 2010 Re: Management Discussion and Analysis For the Operating Results in 2009 To: President The Stock Exchange of Thailand Management Discussion and Analysis For the Operating Results in 2009 1. Report and Analysis of the Operating Results Although total revenues of BAFS and subsidiaries was affected from global recession, political turmoil in the country and the Pandemic (H1N1) 2009 flu, but from the exertion of Cost Reduction Program of management team and every level of employee such as volunteer cutting salary 5%-20% of management, reduction in cost of living and fringe benefit of staffs, lessen overtime rate etc. brought net profit in 2009 increased by Baht 25.3 million to Baht 463.0 or 5.8% from last year at Baht 437.7 million or 2009's earning per share of Baht 0.91 increased from Baht 0.86 per share. Despite volume of fuel serviced was dropped by 4.6% (y-o-y) to 4,116.6 million litres from 4,312.8 million litres. For Fourth Quarter of 2009, net profit of BAFS and its subsidiaries amounted to Baht 97.0 million, a increase of Baht 53.7 million or 124.3% from the same quarter's of last year net profit of Baht 43.2 million or Baht 0.19 per share from Baht 0.09 per share. However, reason for sharply rose in Fourth Quarter of 2009's net profit was Thailand was face up with political tension in the country, leading to 10 days operating suspension of Suvarnabhumi and Don Mueang Airport in Nov. 25 - Dec. 4,2008. Which the main reasons for operation changes are as follows: 1.1 Revenue For 2009, total revenues of BAFS and its subsidiaries amounted to Baht 2,035.0 million, a decrease of Baht 92.0 million or 4.3% when compared with last year. And for the fourth quarter of 2009, total revenues was amounted to Baht 544.4 million, a increase of Baht 56.2 million or 11.5% from the same quarter's of last year. 1.1.1 Services Income Services income of BAFS and its subsidiaries amounted to Baht 1,996.8 million, an decrease of Baht 62.0 million or 3.0% when compared with that of last year consistency with reduction in volume of fuel serviced by 4.6% from last year. And for the fourth quarter of 2009, services income was amounted to Baht 532.4 million, a increase of Baht 74.8 million or 16.0% from the same quarter's of last year. 1.1.2 Other Income 1.1.2.1 Rental Income The rental income in 2009 was Baht 16.7 million, decreasing by Baht 2.6 million or 13.4% compared to that of the last year. And for the fourth quarter of 2009, rental income was amounted to Baht 4.1 million, a decrease of Baht 0.6 million or 12.0% from the same quarter's of last year 1.1.2.2 Other Income Other income was Baht 21.4 million, decreasing by Baht 27.4 million or 56.1% compared to that of the last year. Major items which decreased other income are 1) in 2008, BAFS and its subsidiaries has an extraordinary item gain on disposable assets of Baht 16.3 million which 90% came from gain on sold the land in Lad Krabang of Baht 14.6 million 2) decreasing in interest income from short term investment in T-Bill of Baht 8.7 million 3) decreasing guarantee fee of its subsidiaries' liabilities of Baht 2.0 million as outstanding liabilities was decreasing by debts payment schedule. Besides, the company has decreasing in unrealized FX loss by Baht 0.6 million when compared to unrealized FX gain of last year of Baht 2.6 million as result of Thai Baht depreciated against US$ from 33.36 Bt./US$ in 2008 to 34.34 Bt./US$. And for the fourth quarter of 2009, Other income was amounted to Baht 8.0 million, a decrease of Baht 18.0 million or 69.4% from the same quarter's of last year 1.2 Expenses 1.2.1 Cost of Services In 2009, Cost of services was Baht 895.5 million, decreased by Baht 26.9 million or 2.9% compared to that of the last year. Major items which decreased cost of services are 1) decreasing in salaries and other employee's expense of Baht 17.6 million 2) decreasing in insurance premium by Baht 2.3 million 3) decreasing in Air port Concession Fee by Baht 5.3 million that was in line with dropping of volume. But depreciation and amortization expense was increased by Baht 7.2 million. However, For the fourth quarter of 2009, Cost of services was amounted to Baht 253.4 million, a increase of Baht 10.2 million or 4.2% from the same quarter's of last year due to volume of fuel serviced was increased by 16.0%. 1.2.2 Administrative Expenses Administrative expenses for 2009, was Baht 322.4 million, decreasing by Baht 23.0 million or 6.6% when compared to that of the last year which mainly came from the success in Cost Reduction Program of company. Major items which decreased administrative expenses are 1) decreasing in salaries and other employee's expense of Baht 2.3 million, however, depreciation and amortization expense was increased by Baht 0.7 million. For the fourth quarter of 2009, administrative expenses was amounted to Baht 113.8 million, a decrease of Baht 5.9 million or 4.9% from the same quarter's of last year 1.2.3 Finance Costs Finance Costs for 2009 was Baht 107.0 million which decreasing by Baht 56.7 million or 34.6% when compared to that of the last year as decreasing in market rate. Mainly comprised of interest payment for long term loan and interest payment for financial lease of BAFS at amounted of Baht 76.4 million. Besides that of these items was TARCO's and JP-One's Finance Costs. And for the fourth quarter of 2009, Finance Costs was amounted to Baht 24.0 million, a decrease of Baht 16.2 million or 40.2% from the same quarter's of last year. 1.3 Operating Results For 2009, Net profit of BAFS and its subsidiaries amounted to Baht 463.0 million, a increase of Baht 25.3 million or 5.8% which is equivalent an earning per share of Baht 0.91 when compared with last year. And for the fourth quarter of 2009, Net profit was amounted to Baht 97.0 million, a increase of Baht 53.7 million or 124.3% from the same quarter's of last year, which is equivalent an earning per share of Baht 0.19 , as a result of various factors as discussed above. The Board of Directors' Meeting No.1/2010 held on February 18, 2010 resolved to pay dividend for 2009's performance at the rate of Baht 0.43 per share which accounted to be the total amount of Baht 219.3 million or accounted for payout ratio of 58% of net profit before reserve of the company only. Interim dividend was paid at the rate of Baht 0.13 per share and the rest of dividend would be paid at Baht 0.30 per share. The Company fixed the share registration book closing date for the right to receive dividend on April 28, 2010 and fixed the dividend payment date to be May 14, 2010. 2. Report and Analysis of Financial Status 2.1 Assets As at December 31, 2009 the Company's group had total assets in the amount of Baht 6,843.6 million, decreased by Baht 217.1 million or 3.1% from December 31, 2008. The important details are as follows: 2.1.1 Cash, cash equivalent and short term investment of the Company's group is Baht 768.8 million. The details of important sources and uses of cash and short term investment are as follows: - The Company's group had cash flow from operations of Baht 948.7 million from consolidated net profit before minority interest of 2009 of Baht 490.4 million adjusted with cash inflow items such as depreciation and amortization of Baht 365.0 million, amortization of concession of subsidiary of Baht 28.1 million, decreased in allowance for retirement benefit of Baht 9.2 million. And increased in other current liabilities of Baht 4.7 million. - Cash outflow items comprised of reversal allowance for bad debts of Baht 17.7 million and increased in other current asset by Baht 50.7 million. - Cash flow used in investment was Baht 2.0 million which was decreased in short term investments and loan to related company by Baht 17.7 million, interest received of Baht 11.7 million, purchased in other asset and equipment at amount of Baht 23.7 million. - Cash flow used in financing was Baht 848.2 million which was long term loan principle payment and financial lease at the amount of Baht 530.6 million, interest payment was of Baht 109.0 million and dividend payment for 2H/2008 and 1H/2009 of the company at the amount of Baht 193.8 million respectively. 2.1.2 Property, leasehold improvement and equipment at December 31, 2009 was Baht 5,065.8 million decreased by Baht 335.6 million or 6.2% from December 31, 2008. 2.1.3 Concession of subsidiary was incurred from the acquisition of TARCO's shares at the price higher than its book value up to present this concession was Baht 684.5 million. 2.2 Liabilities As at December 31, 2009, the Company's group had total liabilities of Baht 3,570.9 million, decreased by Baht 498.8 million or 12.3% compared from December 31, 2008 and resulted in debt to equity ratio improved to 1.09 : 1 time from 1.36 : 1 time. Liabilities comprised of major items as follows: 2.2.1 Account payable of Baht 62.1 million which comprised of account payable - related company's group of Baht 41.1 million and others account payable of Baht 21.0 million. 2.2.2 Portion of long term loan which to be paid of Baht 655.0 million which are comprised of long term loan which to be paid for BAFS of Baht 361.6 million, TARCO's long term loan which to be paid of Baht 269.4 million and JP-One's long term loan which to be paid of Baht 24.0 million. Besides that the financial lease which to be paid in one year was Baht 12.6 million which was belonging to BAFS Baht 9.8 million, TARCO's Baht 2.0 million and JP-One's Baht 0.8 million 2.2.3 Other current liabilities of Baht 128.3 million which comprised of major items such as accrued corporate income tax of Baht 55.4 million and others of current liabilities of Baht 72.9 million. 2.2.4 Long term loan from bank of Baht 2,447.5 million decreased by Baht 654.9 million or 21.1% when compared December 31, 2008 which comprised of : - The first portion of Baht 355.6 million was long term loan from KBANK which was semi-annual, principle repayment : Baht 50.8 million/period and will be due in 2014. - The second portion of Baht 1,340.0 million was long term loan from BBL which was quarterly, principle repayment : Baht 50.0 million/period and will be due in 2014. - The third portion of Baht 220.0 million was long term loan from NFS which was quarterly, principle repayment : Baht 6.3 million/period and the rest principle will be paid in last period which will be due in 2015. That first principle payment will be on March,2011. - The forth portion was TARCO's loan of Baht 483.9 million from BBL which comprised of USD loan that TARCO already swap to Baht 108.9 million and THB baht loan of 375.0 million which was quarterly principle repayment and will be due in 2012. - The remaining portion was JP-One loan at amount of Baht 48.0 million from BBL which was monthly principle repayment and will be due in 2012. 2.3 Shareholders' Equity As at December 31, 2009, shareholders' equity of the Company's group was Baht 3,272.6 million, increasing from December 31, 2008 by Baht 281.7 million or 9.4%. 3. Major factors that may affect operating performance or financial status The Company's group has contingent liability from providing a bank guarantee to TARCO for outstanding amount from total long term loan of Baht 753.3 million. (including portion to be paid in one year) Moreover, the Company has contingent liability from providing a bank guarantee to JP-One for a proportion of 50.0% of outstanding amount from total long term loan since established which up to present the amount is Baht 36.0 million (including portion to be paid in one year) Please be informed accordingly. Yours sincerely, (M.R. Supadis Diskul) Managing Director Legal and Securities Division Tel 0-2834-8914 Fax 0-2834-8920