THAI Holds Annual General Shareholders’ Meeting 2011

Travel and Lifestyle Press Releases Thursday April 28, 2011 10:38
Bangkok--28 Apr--Thai Airways

Yesterday (27 April 2011) at 13.30 hrs., at the Royal Thai Army Club, Mr. Ampon Kittiampon, Chairman, Board of Directors, Thai Airways International Public Company Limited, presided over the Company’s Annual General Shareholders’ Meeting 2011, with the attendance of THAI’s Board of Directors, Management and shareholders, whereby the following were covered:

1. Operating Results for Year 2010

It was reported that during year 2010 ending 31 December 2010, the Company’s total revenues amounted to THB 184.27 billion, which was an increase of THB 20.40 billion or 12.4% from the same period in 2009. The increase in revenue primarily was from increased sales or services totaling THB 18.99 billion baht or 11.7%. Expenses excluding gains on foreign currency exchange but includes dividend from investments by the equity method totaled THB 175.85 billion, an increase from the previous year by THB 16.92 billion or 10.6% mostly from the 26.4% increase in cost of jet fuel, increased production, increased personnel costs, which is part of THAI’s human resource strategy. The Company offered a Golden Handshake program and Mutual Separation Plan to its employees totaling THB 2.26 billion, which will reduce personnel expenses in the long-term. In addition, in 2010, the Company’s foreign currency exchange gains totaled THB 9.11 billion, an increase of THB 5.94 billion or 187.5%. Net profit before tax was THB 17.52 billion which was an increase of THB 9.42 billion or 116.1%. Profits before foreign currency gains and income tax totaled THB 8.42 billion, an increase of THB 3.48 billion or 70.4%.

The Company’s net profit was THB 15.35 billion or THB 8.39 per share, which was higher than the net profit of THB 7.34 billion or THB 4.32 per share over the same period in 2009. The EBITDAR was THB 33.32 billion, which was higher than THB 1.40 billion or 4.4% last year.

As of 31 December 2010, the Company’s total assets were THB 293.76 billion, increased from 31 December 2009 by THB 22.07 billion or 8.1% from the Company’s increased cash reserves. This is in accordance with THAI’s strategy to build financial strength, whereby total liabilities were THB 210.85 billion, a decrease from 31 December 2009 by THB 7.60 billion or 3.5%. The Company’s total shareholder equity was THB 82.91 billion, an increase from 31 December 2009 by THB 29.67 billion or 55.7%, resulting from a net profit in 2010 and increased issuance of common stock of 483.9 million shares.

2. Distribution of Dividend

A dividend payment of THB 1.25 per share for 2010 fiscal year was approved at the Annual General Shareholders’ Meeting for 2,182,771,917 shares, totaling THB 2,728,464,896. Dividend payment will be made to shareholders whose name appears on the list as of the Record Date of 15 March 2011 for rights to receive dividend payment. The dividend will be made on 20 May 2011.

3. Remuneration for Board of Directors

The Selection Committee considered it appropriate that the Board of Directors should receive an annual bonus based on the Company’s operating results. The annual bonus for members of the Board of Directors was approved at 0.2%, or a total not exceeding THB 30 million, the net profit before gain/loss on foreign currency exchange from consolidated financial statements. It was approved that this formula shall be used for future annual bonus calculations.

This formula differs from last year at 0.5% of the dividend which would have amounted to THB 13.64 million compared to the new formula amounting to THB 12.49 million. This amount is THB 1.16 million less than the previous year’s calculation.

4. Selection of Board of Directors
The following Directors have fulfilled their 2010 term:
1. Mr. Ampon Kittiampon
2. Mr. Pichai Chunhavajira
3. Mr. Banyong Pongpanich
4. Mr. Varah Sucharitakul
5. Mr. Piyasvasti Amranand
The shareholders approved the appointment of the following individuals to be members of the Company’s Board of Directors for 2011 term:
1. Mr. Dheerasak Suwannayos Director Replacing Mr. Pichai Chunhavajira
2. Mr. Ampon Kittiampon Director
3. Mr. Banyong Pongpanich Director
4. Mr. Varah Sucharitakul Director
5. Mr. Piyasvasti Amranand Director
Attending THAI’s Annual General Shareholders Meeting were 3,969 shareholders, representing 1,847,950,202 shares.
THAI’s Performance and Operations in 2010:
  • THAI successfully rebuilt investor confidence through its induction back into the MSCI index due to improved financial performance, from operations and a successful public offering. The Asset Magazine of Asia named THAI the ‘Best Deal of the Year 2010’ in Thailand.
  • TRIS Rating moved THAI debentures up in credit rating from ‘A’ to ‘A+’ the same rating of ‘A+’ applies to THAI’s THB 8 billion senior debentures.
  • THAI and the Ministry of Social Development and Human Security participated in The World Exposition Shanghai China 2010 to promote and enhance the image of Thailand as well as Thai restaurants overseas.
  • THAI and Nok Air signed an MOU to operate code-share flights between Chiang Mai – Mae Hong Son, Don Mueang – Phitsanulok and Don Mueang – Ubon Ratchathani, effective 1 March 2010 onwards.
  • THAI’s Technical Department signed a contract to conduct Aircraft Maintenance with Societe Concessionaire Des Aeroports, who was granted the concession for airport operations management by the Cambodian Government.
  • THAI signed an MOU with Tiger Airways to launch the low cost carrier Thai Tiger Airways.
  • THAI is the first carrier in the Asian Region to launch a Carbon Offset Program in cooperation with the International Air Transport Association (IATA).
  • THAI is the first carrier in the Southeast Asian Region to operate Boeing 777-200 LRF aircraft with GE90-110B1 engines that are environmentally friendly with noise reduction certification.
  • THAI launched the ‘IT Sparkling for 50th THAI Anniversary’ project that enables flight information to be accessed by customers on mobile phones.
  • In celebration of its 50th Anniversary, THAI held an international conference ‘Asia: Beyond the Economic Horizon’.
  • THAI signed an MOU with the Department of Civil Aviation that aims to boost competency and efficiency in work cooperation.
  • THAI participated in the ‘World Travel Market’ at Excel Exhibition Center, London, United Kingdom.
  • THAI resumed services between Bangkok – Johannesburg, South Africa, commencing 2 June 2010.
  • THAI launched services between Bangkok – Haneda, Japan, commencing 31 October 2010.
THAI’s Awards in 2010
  • THAI was ranked by SmartTravelAsia.com’s ‘2010 Best in Travel Poll’ as 2nd among the 10 top airlines worldwide in the category of ‘Top 10 Airlines, Cabin Service’ and 4th in the ‘Top 10 Airlines, Business Class’ category.
  • THAI won Skytrax 2010 World Airline Award in the categories of ‘Best Airport Services’ and ‘Best Airline Lounge – First Class’.
  • THAI was awarded TTG Travel Awards under the categories of ‘Best Airline – Business Class’ and ‘Best South-East Asian Airline’ at the 21st Annual TTG Travel Awards 2010 Ceremony.
  • THAI placed amongst the top 10 Best International Airlines in a poll conducted by Travel & Leisure Magazine, U.S. edition.
  • THAI won the prestigious Norwegian Grand Travel Award 2011 for ‘Best Intercontinental Airline’. The 16th annual grand travel award ceremony was attended by leading travel agencies and key decision makers in the travel trade industry.
  • THAI won a State Enterprise Award 2010, under the category of ‘Best Innovation,’ organized by the State Enterprise Office, Ministry of Finance.
  • THAI received the prestigious Suriyasasithorn Award 2010 in two categories: Best General Notebook Calendar and Best Wall Calendar based on the theme ‘A Journey of Silk Calendar 2010’.

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