Nok Airlines Public : direction for shareholder equity less than zero

-Translation-

Ref. BOD023/2021

	10 September 2021
RE:	Nok Airlines Public Company Limited's direction for shareholder equity less than zero
To:	President,
	The Stock Exchange of Thailand

On 9 September 2021, the Stock Exchange of Thailand ("SET") notified Nok Airlines Public Company Limited (the "Company") that NOK's securities is subject to possible delisting (NC Stage 1) according to the SET's regulations on the Delisting of a Listed Company. The Company would like to clarify that, besides the business rehabilitation process according to Central Bankruptcy Court under the Bankruptcy Act B.E.2483 (1940) (as amended) which will help the Company for restructuring of debt, cost and organization to achieve the most benefit for all stakeholders, the Company also has the following measures to resolve the possibility of delisting;

1. Measures to make the shareholder equity become greater than zero

The Company has plan for capital restructuring by increasing the capital according to the rehabilitation plan to ensure that the Company's business will resume efficiently and get the most benefit, which will drive the shareholder equity to be become greater than zero.

2. Measures to generate net profit from normal business operatio beased on its core business Other than capital restructuring plan previously mentioned, the Company also has plan for debt

restructuring to bring the most benefit to the Company by reducing debt according to rehabilitation plan including improving effectiveness on following relevant major points;

1. Improvement of fleet and type of aircraft utilization to be suitable for current situation to reduce cost and increase efficient management especially the major costs of airline business which are fuel and maintenance.
2. Amendment of aircraft lease agreements and negotiatetion to reduce the aircraft rental rate significantly both short and long term.
3. Restructuring of debt with all groups of creditors
4. Organization restructuring to be effective and efficeint, improve management direction and communication

บริษัท สายการบินนกแอรจำกัด (มหาชน) 222 อาคารสวนกลาง หองเลขที่4235 ชั้น 4 ถ.วิภาวดีรังสิต แขวงสนามบิน เขตดอนเมือง กรุงเทพฯ 10210 Nok Airlines Public Company Limited 222 Central Block Building, 4th Floor, Vibhavadi Rangsit Rd., Sanambin, Don Muang, 10210

1. Improve service enhancement to expand customer target and to be situable with environment under uncertain situation of Covid-19 pandemic
2. Increase revenue from cargo operation

Furthermore, the Company has prepared plan for additional routes to support passengers after the situation regarding the spread of Covid-19 pandemic is positively improved. The trend is expected to be better and it is a major factor which will drive its net profit to become positive again.

3. Timeframe

On 17 May 2021, the Planner had successfully submitted the Company's rehabilitation plan to the Official Receiver and such plan was accepted by the creditors during Creditors' meeting on 4 Augsust 2021. The Plan is currently under consideration for approval by the Central Bankruptcy Court. After the Plan had been approved by the Court, the appointed Plan Administrator will be able to effectively implement the Plan. The Company expects that overall business will be recovered in 2022 which will be a factor to support airline business to return to normal under the efficient capital structure, including a capital injection which will be a contribution factor to support the Company's business. The Company will report on the progress of the rehabilitation including progress on any other matters.

Please be informed accordingly.

Sincerely yours,

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

บริษัท สายการบินนกแอรจำกัด (มหาชน) 222 อาคารสวนกลาง หองเลขที่4235 ชั้น 4 ถ.วิภาวดีรังสิต แขวงสนามบิน เขตดอนเมือง กรุงเทพฯ 10210 Nok Airlines Public Company Limited 222 Central Block Building, 4th Floor, Vibhavadi Rangsit Rd., Sanambin, Don Muang, 10210