HOLD. Airports of Thailand - AOT. Closing Price. Bt target price (Unchanged) Bt46.25 (-0.5%)

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1 20 December 2011 Airports of Thailand - AOT Closing Price HOLD Bt target price (Unchanged) Bt46.25 (-0.5%) High season in 1Q12 to be impacted by the floods 2011 net profit rose 23.98% YoY to Bt2,528.30m. The results beat our expectations owing to extra items. Excluding the items, profit would increase % YoY The high season in 1Q12 would be adversely impacted by the floods. During the first 2 months of the quarter, number of travelers declined 0.27% and of flights up 8.34% YoY. The company is also expected to book charges relating to flooding expenses. We have revised down our profit before FX in 2012 to Bt4,577.22m. Investors are advised to keep eyes on world economic issues. With our price target pegged at Bt46.25/share, we rate 'HOLD' on the shares net profit rose 23.98% YoY, which surpassed our expectations AOT reported its 2011 net profit standing at Bt2,528.30m, up 23.98% YoY. The figure beat our estimates by 11.75% owing to adjustments on depreciation and tax, despite higher-than-expected asset impairment charges. Total revenue amounted to Bt28,640.69m, up by 19.17% YoY. Number of passengers, flights and cargoes improved 15.46%, 14.43% and 3.97%, respectively. Revenue from aviation increased 22.59%. Revenue from non-aviation business increased 14.41% due to expiration of relief measures for airlines and tenants since Dec Operating charges increased 9.19% from maintenance/repair (+49.68%), state property rentals (+20.63%). The company also booked Bt4,300m impaired assets charges on the Don Muang Airport, which was deducted from retained earnings. The deduction led to lower depreciation expenses in 4Q11 of Bt1,575.83m from Bt2,116.49m in 3Q11. Other expenses increased 45.21% of which Bt331.47m was provision for liabilities incurred from a lawsuit and Bt294.47m impaired assets on the Chiengrai Airport. In addition, there was tax return amounting to Bt163.09m. Including FX losses of Bt1,538.12m for the year, its net profit totaled at Bt2,528.30m. Excluding FX and 2 expense items, net profit would stand at Bt3,950m, comparing with Bt1,764m YoY. Flooding during Oct-Nov caused number of passengers to decline slightly In the month of Oct when flooding situation was still not severe, number of passengers increased by 8.61%. With widespread flooding in Bangkok and the Don Muang Airport in Nov, Thailand had been placed on warning list by various countries. Likewise, China, Taiwan and Vietnam prohibited its people from coming to Thailand. In Nov, number of travelers decreased 8.96% with the QTD figure for Siam Tiyanont Analyst Reg # siam@phillip.co.th Tel #483 Conso' Profits EPS DPS BV ROE P/E Yield P/BV Ending (Btm) (Bt) (Bt) (Bt) (%) (x) (%) (x) 9/08 A 7, /09 A /10 A 1, /11 A 2, /12 E* 4, * not include FX Ref No: CO2554_ Please see back page for disclaimer 6/18

2 20 December 2011 Airports of Thailand - AOT 1Q12 declining 0.27% YoY. Number of flights increased 8.34% (+15.74% in Oct and +1.17% in Nov). However, expiration of relief measures for airlines and tenants helped cushion the impact on revenue. Repair charges on the Don Muang Airport According to AOT's assessment, the damages and reconstruction of the Don Muang Airport would total around Bt1,700m (including VAT). The cabinet would support the first phase of the reconstruction worth Bt489.20m. Another Bt1,000m would be funded by the insurance companies with the remaining portion to be taken up by AOT itself. Meanwhile, additional expenses are also expected as the Don Muang Airport had been used as relief center for the flood victims. We have revised down profit before FX in 2012 by a slight amount Our profit before FX for 2012 has been revised down from Bt4,776.70m to Bt4,577.22m. This is based on expected higher number of travelers to 67.87m, up by 5% from 64.50m YoY. We also factored in additional charges relating to the floods. Total revenue is estimated Bt30.6b. Investors are advised to keep eyes on world economic issues. With our price target pegged at Bt46.25/ share based on DCF (WACC=9.37%), we rate 'HOLD' on the shares. Please see back page for disclaimer 7/18

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