Nok Airlines Public : Plan and Progress Report on 'C' Sign

-Translation-

REF : BOD035/2020

18 August 2020

Subject: Plan and Progress Report on 'C' Sign

Attention: The president of the stock exchange of Thailand

Nok Airline Public Company Limited ("the Company") would like to inform that the Company convened the Public Presentation to provide information to shareholders and related persons on 1 8 August 2 0 2 0 as the Company's securities have been posted C sign ("Caution") due to the financial statements for Q1/ 2020 for the period ending

31 March 2020 has the proportion of shareholders' equity less than 50% of paid-up capital along with the filing for the Company's rehabilitation request on 30 July 2020. The essence can be summarized as follow:

The causes

1. The implementation of new accounting standard on leasing contract which came into effect on 1 January 2020 resulting in losses from revenue recognition on foreign exchange as the company holds long-term contracts in foreign currencies.
2. The liquidation of NokScoot Company Limited (Subsidiary) on 2 0 July 2 0 2 0 resulting in loss incurred from subsidiary's liquidation.
3. The on-going outbreak of Covid-1 9 which results in the lock-down and social distancing measures. Of which create a significant reduction in air transport demand and the Company's revenue.
4. Prevailing fixed costs including aircraft leasing and maintenance with reduced incomes causing adverse impact on the company's liquidity situation.

Measures to Resolve the C Sign Listing

1. The company has appointed rehabilitators which are Mr. Prinya Waiwatana; Mr. Tai Chong Yih; Mr. Kasemsant Weerakun; Mr. Wutthiphum Jurangkool; Mr.Chavalit Uttasart and Grant Thornton Specialist Advisory Services Co., Ltd to propose the Company's rehabilitation plan.
2. Debt restructuring by negotiating with creditors to improve the cashflow situation. This is being carried out by negotiating for debt and interest payment suspension, extensions to bill settlement period, reduction in debt and interest (fully or partially), and leasing fee renegotiation to reflect the current state of the aviation industry.

1. Revision of long and short term marketing plan. This means the emphasis on optimizing route network and fleet strategy to reflect the restriction on international travel for the short-term basis. For the long-term, the company plans for international expansion as international air travel becomes viable. Furthermore, the Company aims to increase distribution channels to cover various platform and forging an evercloser relationship with travel agencies both in and out of Thailand.
2. Organisational restructuring. The Company will streamline its business process for improved efficiency along with the optimization on the workforce and enhance employee's skills and expertise

Business Rehabilitation Process

The Company's Commitment on Corporate Social Responsibility

The Company has long been side by side with the people of Thailand throughout various natural disasters. The Covid-19 is no exception. The Company continued to operate throughout the Covid-19 outbreak as we are fully aware of the importance of air transport service for the country we serve. The company assisted the Thai Red Cross Society by transporting organs for transplant. Transporting 35,000 kg of necessary supplies free of charge. The company also donated masks and supplies to those in need along with donation to 50 health care facilities and not- profit organisations across the country.

Please be informed accordingly. Yours Faithfully,

- Wutthiphum Jurangkool- (Dr. Wutthiphum Jurangkool) Chief Executive Officer