Thai Airways International : Submission of financial statements of Thai Airways International Public Company Limited and its subsidiary for the three-month period and the nine-month period ended September 30, 2020

(TRANSLATION)

TG. 07/2465

November 11, 2020

Subject	Submission of financial statements of Thai Airways International Public Company
	Limited and its subsidiary for the three-month period and the nine-month
	period ended September 30, 2020
To	President of the Stock Exchange of Thailand
Enclosed	1.	Thai Airways International Public Company Limited and its subsidiaries'
		financial statements for the three-month period and nine-month period
		ended September 30, 2020
	2.	Management's Discussion and Analysis (MD&A) for the third quarter
		of the financial year 2020 ended September 30, 2020 of Thai Airways
		International Public Company Limited and its subsidiaries
	3.	Report Summarizing Operating Results of the Company (F45-3)

Thai Airways International Public Company Limited is pleased to submit the Company's consolidated financial statements and its subsidiaries for the three-month period and nine-month period ended September 30, 2020 which has been reviewed by the Auditor and also Management's Discussion and Analysis (MD&A) for the third quarter of the financial year 2020 ended September 30, 2020. Details have been enclosed and can be summarized as follow:

The COVID-19 pandemic still has affected world's aviation industry. In the third quarter of 2020 there were slight signs of recovery from domestic travel; however, the figures presented the much lower number than normal levels. Thai tourism sector is still affected due to the international travel restrictions, both of Thailand and other countries resulting in a strong contraction of inbound foreign tourists for the sixth consecutive month.

THAI continued to strengthen the measures to reduce costs and mitigate the impact of the COVID 19 situation from the previous quarter. THAI provides cargo transportation services in certain routes including organized special flights to bring Thais home and emphasizing the non-related passenger revenues by penetrating the market to more ground customers. While ThaiSmile, a subsidiary, has resumed the service of passengers on domestic routes from June 1, 2020 onwards.

In the third quarter of 2020, THAI and its subsidiaries recounted passenger production (ASK) decreased by 95.0% while passenger traffic (RPK) decreased by 97.8%. Average cabin factor was 34.9% lower than last year which averaged 80.0%. Passengers carried were 0.49 million people, a decrease of 91.9% from the previous year. For cargo transportation, freight production (ADTK) was 96.2% lower than the previous year, while freight traffic (RFTK) was 93.6% lower than the previous year. Average Freight load Factor was 91.2% higher than the previous year at 52.2%.

Total revenues of THAI and its Subsidiaries were THB 3,727 million, lower than the same quarter of last year by THB 41,289 million or 91.7%. The main reason was because both revenue from passenger and cargo transportation decreased by THB 37,654 million (95.1%). Revenue from other activities decreased by THB 1,718 million (56.2%) Total expenses were of THB 19,375 million, THB 28,483 million or 59.5% lower than last year, mainly due to operating expenses that varied with traffic production, traffic demand and number of passengers decreased in line with production

and traffic demand. Moreover, fixed expense was still high while reducing revenue decreased greater than reducing expenses which was inadequate to compensate resulting in operating loss of THB 15,648 million, higher loss of THB 12,806 million (450.6%) from the same quarter last year.

THAI and its subsidiaries had a one-time cost consisting of

• Impairment loss on fixed assets in the amount of THB 444 million.
• Impairment loss in accordance with TFRS 9 in the amount of THB 35

million.

• Loss on foreign exchange was THB 5,306 million, which mainly caused by the accounting revaluation.
• Gain for hedge of group of items with offsetting risk positions in the amount of THB 32 million.

THAI and its Subsidiaries had net loss of THB 21,531 million, more loss of THB 16,851 million (360.1%) from the previous year. Loss attributable to owners of the parent company was THB 21,536 million, representing a loss of THB 9.87 per share while last year had a loss of 2.14 baht per share.

As of September 30, 2020, total assets totaled THB 298,952 million, increased by THB 44,144 million (17.3%) from as at December 31, 2019. Total liabilities as of September 30, 2020 were THB 338,897 million, increased by THB 95,855 million (39.4%) from as of December 31, 2019. As of September 30, 2020 shareholders' equity of THAI and its subsidiaries amounted to THB -39,945 million, decreased from 31 December 2019 by THB 51,711 million (439.5%).

On September 14, 2020, the Central Bankruptcy Court granted THAI's business reorganization petition and appointed the planner as nominated by THAI, At this time, the planning team is in the process of preparing the business reorganization plan.

Please be informed accordingly.

Yours faithfully,

Mr. Chai Eamsiri

Vice President Petroleum, Corporate Insurance

& Aviation Environmental Department

Acting Executive Vice President Finance and Accounting Department

Management Accounting and MIS Department 0-2545-2499