BTS Group Holdings PCL SET OPPORTUNITY DAY FY 2016/17 EARNINGS - - PowerPoint PPT Presentation

bts group holdings pcl
SMART_READER_LITE
LIVE PREVIEW

BTS Group Holdings PCL SET OPPORTUNITY DAY FY 2016/17 EARNINGS - - PowerPoint PPT Presentation

BTS Group Holdings PCL SET OPPORTUNITY DAY FY 2016/17 EARNINGS PRESENTATION 7 JUNE 2017 Source: Bangkokcitismart prepared by Investor Relations department BTS Group Holdings PCL Disclaimer Investment involves risk. Prospective should


slide-1
SLIDE 1

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Holdings PCL

SET OPPORTUNITY DAY FY 2016/17 EARNINGS PRESENTATION

7 JUNE 2017

Source: Bangkokcitismart

slide-2
SLIDE 2

Disclaimer

Investment involves risk. Prospective should understand the characteristics of Securities and study information about BTS Group Holdings Public Company Limited (the “Company”) before making a decision to invest in Securities. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. It shall not and does not constitute either an offer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange

  • r a solicitation to sell or exchange any securities of BTS Group Holdings PCL (the "Company") or any of its subsidiaries in the United States of America or in any other jurisdiction or an

inducement to enter into investment activity. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the Company nor any of its subsidiaries accepts any obligation to update

  • r otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the

Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied

  • n as promise or representation of the Company as to the future.

BTS Group Earnings Presentation 2

slide-3
SLIDE 3

Agenda

Section

1

FY 2016/17 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

BTS Group Earnings Presentation 3

slide-4
SLIDE 4

prepared by Investor Relations department BTS Group Holdings PCL

FY 2016/17 BTS Group Key Milestones

4 BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

For more details, please refer to FY 2016/17 BTS MD&A: significant events

17 May 2016 “A / Stable” credit rating from FITCH and TRIS 16 Aug 2016 FY 2016/17 final div paid 10 Nov 2016 THB 22bn BTSC debentures issued 9 Jan 2017 BoD approved interim div (THB 0.165/share) 29 May 2017 BoD approved final div3 (THB 0.175/share)

MASS TRANSIT

23 May 2016 Contract signed for train procurement of Green Line extensions 28 Jun 2016 Contract signed for E&M installation of Green Line extensions 31 Mar 2017 Contract signed for O&M services of Green Line extensions

MEDIA &SERVICES

31 May 2016 VGI increased stake in MACO (33.68%) Sep 2016 VGI’s entry into Transit advertising in Malaysia (19% in TCSB1) Nov 2016 VGI acquired 40% in Demo Power 21 Mar 2017 Rabbit Group2 transaction completed (90%)

PROPERTY

9 Sep 2016 U City acquired office building at 33 Gracechurch Street, UK 23 Feb 2016 U City agreed to acquire pan-European hotel portfolio & hotel mgt co. and associated brands (closed 31 May 2017) 31 Mar 2017 5 projects of BTS-SIRI condominium launched, value of THB 19.2bn

1TCSB = Titanium Compass Sdn Bhd 2Rabbit Group = BSS and BSSH 3Subject to shareholders’ approval, the Board of Directors approved the final dividend of THB 0.175 per share or equivalent to the dividend payment in the amount of not exceeding THB 2,763.3mn

30 May 2017 The cabinet approved Pink and Yellow Lines Aug 2016 VGI increased stake in Aero Media (28%)

slide-5
SLIDE 5

prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

INCOME STATEMENT (THB mn) FY 2016/17 FY 2015/16 % YoY Operating Revenues1 8,606.2 6,280.3 37.0% Gross operating profits 4,464.3 3,791.8 17.7% Operating EBITDA2 2,928.3 2,692.8 8.7% Net recurring profit – before MI 1,906.9 2,282.7 (16.5)% Accounting EBITDA 4,117.3 6,254.1 (34.2)% Net income (loss)3 2,003.5 4,133.9 (51.5)% Gross operating profit margin (%) 51.9% 60.4% Accounting EBITDA margin (%) 41.2% 59.7% Recurring net profit margin (%) 20.1% 33.7% Operating EBITDA margin (%) 34.0% 42.9%

P&L SNAPSHOT

49% Mass Transit 35% Media 7% Property 9% Services

2016/17 OPERATING REVENUE BREAKDOWN

1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3to equity holders of the parent

5

FY 2016/17 BTS Group Overview

6,280 8,606 1,663 691 (279) 251

2015/16 Mass Transit Media Property Services 2016/17

65% 30%

(THB mn)

  • 31%

51%

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-6
SLIDE 6

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

  • O&M revenue rose by 4% YoY to THB 1,661mn mainly from the

contractually agreed increase in operating fee of the extension lines

  • Farebox revenue grew 4% YoY to 6,636mn with ridership growth of

2.4% YoY and average fare growth of 1.3% YoY

  • Share of net profit in BTSGIF increased 12% YoY to THB 945mn
  • Services revenue from the provision of E&M works and the train

procurement service for the Southern and Northern Green Line extensions of THB 1.4bn was recorded

  • Costs rose 146% YoY to THB 2.1bn largely due to cost of services

related to the provision of E&M works and the train procurement service for Green Line extensions

  • Operating EBITDA margin was 50.4% (67.2% in FY 2015/16)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn) FY 16/17 FY 15/16 %YoY Revenue 4,236.6 2,573.5 64.6% Costs of revenue 2,131.4 865.4 146.3% Gross profit 2,105.2 1,708.1 23.2% Operating EBITDA 2,135.9 1,728.9 23.5% Gross margin (%) 49.7% 66.4% Operating EBITDA margin (%) 50.4% 67.2%

OPERATING REVENUE BREAKDOWN

39% O&M Services revenue from provision

  • f E&M works & train procurement

34%

FY 2016/17

Int income from train procurement & E&M 5% 6

Mass Transit

Share in BTSGIF 22%

392 394 395 395 409 417 411 411 422 34 34 33 33 33 33 32 32 90 147 208 223 219 197 221 199 284 241 1,444

4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17

Services revenue from provision of E&M works & train procurement Share of NP in BTSGIF (THB mn) Int income from train procurement and E&M works (THB mn) O&M (THB mn)

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-7
SLIDE 7

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

  • Overall Media revenue up 30% YoY to THB 3,010mn mainly from

higher revenue in both Out of Home (OOH) and Digital Services

  • OOH Media revenue increased 28% YoY to THB 2,640mn chiefly

attributable to the recognition of the consolidated revenue from MACO (Outdoor segment)

  • Revenue from Digital Services business rose by 48% YoY to THB

370mn from revenue of Rabbit and Rabbit Internet Group

  • Operating EBITDA margin dropped YoY to 46.7% (60.2% in FY

2015/16) as higher costs and SG&As coupled with lower-than- expected revenue growth as a result of mourning period 61% BTS – Related Media 18% Outdoor Media

MEDIA (THB mn) FY 16/17 FY 15/16 %YoY Operating revenue 3,009.6 2,318.4 29.8% Costs of revenue 1,042.8 710.9 46.7% Gross profit 1,966.8 1,607.5 22.4% Operating EBITDA 1,406.6 1,395.8 0.8% Gross margin (%) 65.3% 69.3% Operating EBITDA margin (%) 46.7% 60.2%

FY 2016/17

OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN

7

Media

9% Office Buildings and Others 12% Digital

*Restated figures as if revenues generated from Rabbit Group (subsidiaries of BSS and BSSH except BPS and RR) were recorded under VGI’s financial statements and grouped as Media Business

605 539 527 512 570 542 703 755 741 104 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16* 1Q 16/17 2Q 16/17 3Q 16/17* 4Q 16/17*

Digital Services Business Out of Home Media NOTE: Out of Home Media includes Transit, Outdoor and Office Building and Other Media Digital Services Business includes BSS and BSSH (Rabbit Group)

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-8
SLIDE 8

prepared by Investor Relations department BTS Group Holdings PCL

Sale of assets to U City 364 233 331 161 171 142 142 147 186 9,469 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17

Operating revenue Proceeds from land sale

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

  • Operating revenue decreased by 31% YoY to THB 617mn mainly

from the reduction in sales in residential property segment

  • Residential property revenue decreased 87% YoY to THB 39mn

mainly from no revenue recognition from Abstracts Phahonyothin Park Condominium (Tower A)

  • Commercial property revenue decreased 3% YoY to THB 579mn

mainly from no revenue of Eastin Grand Hotel Sathorn (EGS) this year since its disposal to U City

  • Operating costs decreased by 29% YoY to THB 385mn in line with

the reduction in revenue

  • Share of loss from BTS-SIRI (THB 253mn), U (THB 179mn) and

Bayswater (THB 118mn) 94% Commercial & Others Residential 6%

OPERATING PERFORMANCE

PROPERTY (THB mn) FY 16/17 FY 15/16 %YoY Operating Revenue 617.1 896.5 (31.2)% Costs of revenue 384.6 541.5 (29.0)% Gross profit 232.5 354.9 (34.5)% Operating EBITDA 3.2 86.3 (96.3)% Gross margin (%) 37.7% 39.6% Operating EBITDA margin (%) 0.5% 9.6%

OPERATING REVENUE BREAKDOWN

FY 2016/17

NOTE: Property revenue excludes share of profit/(loss) from investment in BTS-SIRI JVs, U City and Bayswater.

8

Property

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-9
SLIDE 9

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

  • Revenue increased by 51% YoY to THB 743mn principally due to an

increase in revenues from HHT construction and ChefMan restaurant

  • Operating costs increased by 57% YoY to THB 583mn largely from

higher costs of construction under HHT

  • SG&A expenses rose by 20% YoY to THB 312mn. Key SG&A items

were mainly from higher staff cost and expenses related to ChefMan Restaurants. 55% ChefMan BPS & Rabbit rewards 17%

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

SERVICES (THB MN) FY 16/17 FY 15/16 %YoY Revenue 742.9 492.0 51.0% Costs of revenue 583.0 370.6 57.3% Gross profit 159.9 121.4 31.7% Operating EBITDA (97.0) (95.5) (1.5)% Gross margin (%) 21.5% 24.7% Operating EBITDA margin (%) (13.1)% (19.4)%

FY 2016/17

HHT 29% 9

Services

138 139 164 195 190 114 199 235 307 167 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16* 1Q 16/17 2Q 16/17 3Q 16/17* 4Q 16/17*

*Restated figures as if revenues generated from Rabbit Group (subsidiaries of BSS and BSSH except BPS and RR) were recorded under VGI’s financial statements and grouped as Media Business

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-10
SLIDE 10

prepared by Investor Relations department BTS Group Holdings PCL

46,901 45,182 5,799 29,833 12,560 18,636

31-Mar-16 31-Mar-17 Total current liabilities Total non-current liabilities Total shareholders' equity

65,259 93,651

55,069 66,947 10,191 26,705

31-Mar-16 31-Mar-17 Total current assets Total non-current assets

65,259 93,651

Cash 31 Mar 16: THB 2.36bn 31 Mar 17: THB 15.09bn Current Investments 31 Mar 16: THB 4.67bn 31 Mar 17: THB 6.38bn Long-Term Investments 31 Mar 16: THB 9.75bn 31 Mar 17: THB 13.52bn Restricted Deposits 31 Mar 16: THB 1.27bn 31 Mar 17: THB 0.12bn Gross Debt 31 Mar 16: THB 9.28bn 31 Mar 17: THB 38.31bn Adjusted Net Debt 31 Mar 16: THB (6.0)bn 31 Mar 17: THB 6.05bn ***** Issued Ordinary Shares 31 Mar 16: 11,929.3mn 31 Mar 17: 11,935.0mn

84% 16% 29% 71% 20% 48% 32% 72% 19% 9% FY 2016/17:

0.85x

FY 2015/16: 0.20x

Gross Debt to Equity

FY 2016/17:

0.13x

FY 2015/16: (0.13)x

Adjusted Net Debt to Equity

FY 2016/17:

2.07x

FY 2015/16: (2.23)x

Adjusted Net Debt to Operating EBITDA

FY 2016/17: 4.53x FY 2015/16: 9.30x

Interest Coverage

FY 2016/17:

1.43x

FY 2015/16: 0.81x

Current Ratio

ASSET BREAKDOWN (THB MN) LIABILITIES AND EQUITY BREAKDOWN (THB MN) KEY RATIOS

10

Balance Sheet

Remarks: Net debt to Equity = 0.51x (FY 15/16 = 0.15x) and Net debt to Operating EBITDA = 7.93x (FY 15/16 = 2.57x)

BTS Group Earnings Presentation Section 1: FY 2016/17 Financial Performance

slide-11
SLIDE 11

Agenda

Section

1

FY 2016/17 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

11

BTS Group Earnings Presentation

slide-12
SLIDE 12

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Additional 95.7km, 78 stations secured in 2017

12

BTS NETWORK LINES – EXPANDING FROM 36.3KM (34 STATIONS) TO 132KM (112 STATIONS) – SECURED IN 2017

*The first station (E15, Samrong) of the Southern Green Line Extension from Bearing to Samut Prakan began operation on 3 Apr 17. Full operation of the Southern part is targeted in 2018.

LIGHT GREEN SAPHAN TAKSIN – BANG WA 7.5km DARK GREEN BEARING – SAMUT PRAKARN* 12.6km

1 2 2 3 3

DARK GREEN MO CHIT - KHU KHOT 18.2km DARK GREEN MO CHIT – ON NUT 17.0km LIGHT GREEN NATIONAL STADIUM – SAPHAN TAKSIN 6.3km DARK GREEN ONNUT – BEARING 5.3km YELLOW LAD PRAO – SAM RONG 34.5KM

4 4

PINK KHAE RAI – MIN BURI 30.4KM

  • 1. CORE NETWORK

MOCHIT TO ONNUT AND NATIONAL STADIUM TO SAPHAN TAKSIN

  • 23.5KM & 23 STATIONS
  • CONCESSION CONTRACT (1999-2029)
  • 2. GREEN LINE EXTENSIONS

ONNUT TO BEARING AND SAPHAN TAKSIN TO BANG WA AND CORE NETWORK (POST 2029)

  • 12.8KM & 11 STATIONS
  • 30YR O&M CONTRACT (2012-2042)
  • 3. NEW GREEN LINE EXTENSIONS

BEARING TO SAMUTPRAKARN AND MOCHIT TO KHU KHOT

  • 30.8KM & 25 STATIONS
  • 26YR O&M CONTRACT (2017-2042)
  • 4. PINK AND YELLOW LINES

KHAE RAI TO MIN BURI AND LAD PRAO TO SAM RONG

  • 64.9KM & 53 STATIONS
  • 30YR PPP NET COST CONTRACT

BTS Group Earnings Presentation Section 2: Business Update

slide-13
SLIDE 13

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL AVERAGE FARE & % GROWTH (YOY) HISTORICAL RIDERSHIP & % GROWTH (YOY)

13

Mass Transit Update

FY 2016/17 Core Network Ridership

BTS Group Earnings Presentation Section 2: Business Update

  • Annual Ridership increased 2.4% YoY to 238.0mn trips – new

historical record

  • Annual average weekday ridership of 735,081 trip, +2.1% YoY
  • Net farebox revenue grew 3.7% YoY to THB 6.6bn
  • Average Fare increased 1.3% YoY to THB 27.9 per trip
  • Key factors: from the full-year recognition of the price

adjustment of both monthly-pass card since July 2015 and stored-value card since January 2016 197.2 214.7 218.7 232.5 238.0 12.0% 8.9% 1.9% 6.3% 2.4%

  • 150.0%
  • 140.0%
  • 130.0%
  • 120.0%
  • 110.0%
  • 100.0%
  • 90.0%
  • 80.0%
  • 70.0%
  • 60.0%
  • 50.0%
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%
0.0% 10.0% 20.0% 30.0%
  • 50.0
100.0 150.0 200.0 250.0 300.0

2012/13 2013/14 2014/15 2015/16 2016/17 Total Ridership (mn trips) Ridership Growth (% YoY) 24.8 26.4 26.9 27.5 27.9 1.7% 6.5% 1.6% 2.4% 1.3%

  • 150.0%
  • 140.0%
  • 130.0%
  • 120.0%
  • 110.0%
  • 100.0%
  • 90.0%
  • 80.0%
  • 70.0%
  • 60.0%
  • 50.0%
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%
0.0% 10.0% 15.0 17.0 19.0 21.0 23.0 25.0 27.0 29.0

2012/13 2013/14 2014/15 2015/16 2016/17 Average Fare (THB per trip) Average Fare Growth (% YoY)

slide-14
SLIDE 14

prepared by Investor Relations department BTS Group Holdings PCL

NEW GREEN LINE EXTENSIONS BEARING TO SAMUTPRAKARN AND MOCHIT TO KHU KHOT

  • 30.8KM & 25 STATIONS
  • 26-YEAR O&M CONTRACT FROM 3 APRIL

2017 TO 2 MAY 2042 SOUTHERN GREEN LINE EXT. (BEARING – SAMUTPRAKARN) 12.6KM, 9 STATIONS MAR 12 Civil works start MAR 16 MOU between MRTA & BMA signed APR 17 1st station Operates (Samrong Station) WITHIN 18 Targeted full operation

2012 2016 2017 2018

14 BTS Group Earnings Presentation Section 2: Business Update

Mass Transit Update

Southern and Northern Green Line Extensions

MAR 17 Finalised O&M contract NORTHERN GREEN LINE EXT. (MO CHIT – KHU KHOT) 18.2KM, 16 STATIONS MID-15 Civil works start MAR 16 MOU between MRTA & BMA signed MID 19 Targeted 1st station

  • pened

WITHIN 20 Targeted full operation

2015 2016 2017 2020

MAR 17 Finalised O&M contract

2019

Source: MRTA, the Company

TRAIN PROCUREMENT OF 172 CARRIAGES (APPROXIMATELY THB 10BN)

MAY 16

E&M SALES & INSTALLATION (APPROXIMATELY THB 19BN)

JUN 16

CONTRACT DETAILS FUNDING REQUIREMENTS

2017

slide-15
SLIDE 15

prepared by Investor Relations department BTS Group Holdings PCL

7 NOV 2016 BSR Joint Venture, a Joint Venture between BTS Group, Sino-Thai Engineering & Construction PCL (STEC) and Ratchaburi Electricity Generating Holding PCL (RATCH), submitted a tender offer of the Pink and the Yellow lines 14 DEC 2016 MRTA officially notified that BSR JV proposed the best offer for both lines 10 FEB 2017 The establishment of the 2 joint venture companies under the BSR Joint Venture for both lines 30 MAY 2017 The Cabinet approved the Pink and the Yellow Line 16 JUN 2017 Expected contracts signed for both lines 2020 Expected operation for both lines begin

Source: MRTA, the Company

15 BTS Group Earnings Presentation Section 2: Business Update

Mass Transit Update

Pink and Yellow Lines

slide-16
SLIDE 16

prepared by Investor Relations department BTS Group Holdings PCL

16 BTS Group Earnings Presentation Section 2: Business Update

Media Update

VGI Key Milestone in 2016/17

BANGKOK CBD NATIONWIDE INTEGRATED MEDIA PLATFORM DATA CENTRIC MEDIA HYPERMARKET

OFFICE TRANSIT OUTDOOR AVIATION DIGITAL SERVICES ACTIVATION OFFICE TRANSIT

TRANSIT 60% market share Invested 19% in Titanium Compass OFFICE 70% market share Secured 27 additional contracts OUTDOOR 30% market share Acquired additional 12.5% in MACO AVIATION 20% market share Acquired additional 10.0% in Aero Media ACTIVATION 70% market share Invested 40.0% in Demo Power

OUTDOOR AVIATION OFFICE TRANSIT

Completed an acquisition of 90.0% of Bangkok Smartcard Systems and BSS Holdings Successfully launched first cross media campaign – The “Station Sponsorship”

Targeted Media Solution

ACTIVATION

OOH media leader in Bangkok CBD

ACHIEVED

ACHIEVED

  • TRANSFORMING TO
slide-17
SLIDE 17

prepared by Investor Relations department BTS Group Holdings PCL

U City THB 7.1bn Bayswater JV THB 3.9bn Residential THB 0.5bn Commercial THB 3.8bn Land Bank THB 1.8bn

  • HOTEL REVPAR AND OCCUPANCY
  • HISTORICAL HOTEL OCCUPANCY

Others 25% U-Hotels 41% Thana City Golf 33% Total Book Value as of 31 Mar 17:

THB 18.9bn

17 BTS Group Earnings Presentation Section 2: Business Update

Property Update

BTS Group Property Breakdown

PROPERTY BOOK VALUE BREAKDOWN COMMERCIAL PROPERTY REVENUE BREAKDOWN COMMERCIAL PROPERTY

78.3% 74.4% 80.5% 81.8% 82.9% 76.3% 83.4% 76.6% 79.3%

4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17

3,860 1,347 2,492 2,486 91.7% 64.2% 82.2% 79.3% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

  • 1,000

2,000 3,000 4,000 5,000 U Chiang Mai U Inchantree U Sathorn Blended

RevPar (THB per night) Occupancy Rate

FY 16/17 Commercial Property Revenue:

THB 578mn

BTS-Sansiri JV THB 0.7bn Keystone JV THB 1.0bn

3% 20% 10% 4% 38% 21% 5%

slide-18
SLIDE 18

prepared by Investor Relations department BTS Group Holdings PCL

18 BTS Group Earnings Presentation Section 2: Business Update

Property Update

Residential Property: Launches of BTS-Sansiri Projects

THE LINE SUKHUMVIT 71

100% Sold Project value of THB 2.0bn Transfer start in Sep 2016

THE LINE JATUJAK-MO CHIT

100% Sold Project value of THB 5.7bn

  • Est. Transfer start in Oct 2017

THE LINE RATCHATHEWI

100% Sold Project value of THB 2.9bn

  • Est. Transfer start in May 2018

60% Sold Project value of THB 4.0bn

  • Est. Transfer start in Mar 2021

KHUN BY YOO

57% Sold Project value of THB 5.7bn

  • Est. Transfer start in Nov 2019

THE LINE PRADIPAT

42% Sold Project value of THB 4.2bn

  • Est. Transfer start in Dec 2019

THE LINE SUKHUMVIT 101

THB 10.6BN VALUE OF PROJ. LAUNCHED IN 2015/16 THB 19.2BN VALUE OF YTD PROJ. LAUNCHED IN 2016/17

THE BASE GARDEN RAMA 9

83% Sold Project value of THB 2.2bn

  • Est. Transfer start in May 2019

THE LINE ASOKE - RATCHADA

100% Sold Project value of THB 3.0bn

  • Est. Transfer start in Apr 2019

TARGET TO LAUNCH THB 100BN IN PROJECT VALUE OF JV PROJECTS OVER 5 YEARS

slide-19
SLIDE 19

prepared by Investor Relations department BTS Group Holdings PCL

5,460

  • 8,160

1,450 700 25

19 BTS Group Earnings Presentation Section 2: Business Update

BTS Group Update

FY 2017/18 BTS Group Target Guidance

FY 2017/18 BTS GROUP TARGETS

  • 3-5% Ridership Growth
  • 1% Effective Fare Increase
  • 10-12% Train O&M Revenue* Growth
  • THB 6-9bn Services Revenue of E&M

Works & Rolling Stocks Procurement for Green Line South and North extensions

  • THB 4,000mn** Targeted Media

Revenue (see details in next slide)

MEDIA

  • THB 650mn Commercial Property

Revenue

  • THB 200mn Share of Net Profit from

BTS-SIRI JVs

PROPERTY

*Train O&M revenue includes 1st station of Green Line South: E15 which was opened on 3 April 2017 **Based on VGI financial statements that included Rabbit Group performance (3-year restatement under common control basis)

MASS TRANSIT

  • 9.2mn Rabbit Cards in Circulation

SERVICES

FY 2017/18 CAPEX of THB 7.6 - 10.3BN

BTSG CAPEX excludes:

  • Real estate development cost for Property business
  • Investment in BTS-SIRI project (net) of THB 1,500mn
  • Investment in international school project of THB 200mn
  • BTSGIF CAPEX of THB 620mn (includes mainly i. rolling stocks
  • f THB 197mn, ii. AFC upgrade of THB 157mn, iii. Radio

upgrade of THB 156mn) – excludes construction of station S4

(which is recorded as investment in NRTA)

  • THB 3,500-5,250mn E&M Green

Line South and North extensions

  • THB 1,900-2,850mn New rolling

stocks

  • THB 60mn Normal CAPEX
  • THB 880mn Thana City & other

improvements

  • THB 300mn Investment property

in Thana City

  • THB 270mn Land acquisition
  • THB 340mn VGI CAPEX
  • THB 210mn MACO CAPEX
  • THB 150mn Rabbit Group CAPEX

Mass Transit Media Property Services

79% 14% 7%

THB

7.6-10.3BN

slide-20
SLIDE 20

BTS Group Earnings Presentation

APPENDIX

20

slide-21
SLIDE 21

prepared by Investor Relations department BTS Group Holdings PCL

FY 2016/17 Target Assessment

21

The slower-than-expected Media revenue growth was mainly from suspending all digital media and advertisements during the 30-day mourning period Media Revenue +29.8% YoY (Revised Target 30%)

MASS TRANSIT MEDIA PROPERTY SERVICES

Continuous growth in net farebox revenue +3.7% YoY from an increase in ridership and fare Ridership Growth +2.4% YoY (Target 5-6%) Average Fare Increase +1.2% YoY (Target 1%) TARGET ACHIEVED O&M Revenue up +4.2% YoY (Target 3-4%) TARGET ACHIEVED Our Property revenue was largely affected by modest GDP growth and prolonged renovation period at Thana City THB 579mn Commercial Property Revenue (Target THB 620mn) THB 39mn Residential Property Revenue (Target THB 60mn) Over 7.3mn Rabbit cards were issued with more than 110 brand partners over 2,000 retail shop acceptance with 4,000 readers in the circulation 7.3mn Rabbit Cards (Target 6.5mn cards) TARGET ACHIEVED 2,000 retail shops (Target 2,000 shops) TARGET ACHIEVED 2.7mn Rabbit Rewards member (Target 3mn members)

BTS Group Earnings Presentation Appendix

slide-22
SLIDE 22

prepared by Investor Relations department BTS Group Holdings PCL

22 BTS Group Earnings Presentation Appendix

Mass Transit Update

256.8km Awarded Rail Mass Transit Lines and BTS new Lines

23.5KM CORE NETWORK MOCHIT TO ONNUT AND NATIONAL STADIUM TO SAPHAN TAKSIN 12.8KM GREEN LINE EXTENSIONS ONNUT TO BEARING AND SAPHAN TAKSIN TO BANG WA 30.8KM NEW GREEN LINE EXTENSIONS BEARING TO SAMUTPRAKARN AND MOCHIT TO KHU KHOT 64.9KM PINK AND YELLOW KHAE RAI TO MIN BURI AND LAD PRAO TO SAM RONG

PURPLE BANG YAI – BANG SUE 23.0km GREEN NATIONAL STADIUM – BANG WA 14.0km GREEN MO CHIT – SAM RONG 24.1km ARL PHAYATHAI – SUVARNABHUMI 28.5km PINK KHAE RAI - MIN BURI 34.5km YELLOW LAD PRAO - SAM RONG 30.4km

20KM OF INITIAL BLUE LINE BANG SUE – HUA LAMPHONG 23.0KM PURPLE LINE BANG SUE – HUA LAMPHONG 27.0KM OF BLUE LINE EXTENSION BANG SUE – THA PRA AND BANG KHAE 28.5KM AIRPORT RAIL LINK PHAYATHAI – SUVARNABHUMI 26.3KM RED LINE BANG SUE – RANG SIT

BTS 132.0KM BEM 70.0KM SRT 54.8KM

OPERATING LINE 109.6KM UNDER CONSTRUCTION 82.3KM

slide-23
SLIDE 23

prepared by Investor Relations department BTS Group Holdings PCL LINE ROUTE AUTHORISING BODY TARGETED OPERATE YEAR CONSTRUCTION PROGRESS

  • No. of station

DISTANCE (KM)

BLUE HUA LAMPHONG - BANG KHAE MRTA 2020 UNDER CONSTRUCTION 11 14.0 BLUE BANG SUE - THA PRA MRTA 2020 UNDER CONSTRUCTION 9 13.0 BLUE BANG KHAE - BHUDHAMONTHON 4 MRTA 2021 4 8.0 PURPLE (SOUTHERN) TAO POON - RAT BURANA MRTA 2022 17 23.6 GREEN (SOUTHERN) BEARING - SAMUT PRAKARN BMA 2018 UNDER CONSTRUCTION 9 12.6 GREEN (NORTHERN) MO CHIT - KHU KHOT BMA 2020 UNDER CONSTRUCTION 16 18.2 GOLD (PHASE I) KRUNG THON BURI - PRACHA THIPOK BMA 2018 3 1.7 PINK KHAE RAI - MIN BURI MRTA 2020 30 34.5 YELLOW LAD PRAO - SAM RONG MRTA 2020 23 30.4 GREEN EXT. (WESTERN) BANG WA - TALING CHAN BMA 2020 6 7.0 GREEN EXT. (NORTHERN) KHU KHOT - LUMLUKKA MRTA 2021 4 7.0 GREEN EXT. (SOUTHERN) SAMUT PRAKARN - BANGPU MRTA 2021 4 7.0 LRT BANG NA - SUVARNABHUMI BMA 2022 14 18.3 GREY (PHASE I) WATCHARAPHON - THONG LO BMA 2022 15 16.3 ORANGE (EASTERN) THAILAND CULTURAL CENTER - MIN BURI MRTA 2023 17 22.6 ORANGE (WESTERN) TALING CHAN - THAILAND CULTURAL CENTER MRTA 2023 12 17.0 DARK RED BANG SUE - RANGSIT SRT 2021 UNDER CONSTRUCTION 8 26.3 DARK RED BANG SUE – HUA LUM PHONG SRT 2020 5 6.5 LIGHT RED BANG SUE – PHAYATHAI – MAKKASAN – HUAMAK SRT 2020 9 19.0

TOTAL (KM) 303.0

303.0KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT IN 6 YRS, 82.3KM UNDER CONSTRUCTION

CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES

161.8km

BTS Group: A Key Participant in Mass Transit Development

Focused on new 10 lines; total length of 161.8km

23

Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, State Railway of Thailand, Ministry of Transport, Bangkok Expressway and Metro Public Company Limited (BEM), BTS Group Holdings Public Company Limited (BTS)

BTS Group Earnings Presentation Appendix

slide-24
SLIDE 24

prepared by Investor Relations department BTS Group Holdings PCL

24

Mass Transit Update

Focused on new Lines; total Length of 162.8km

PINK LINE

  • Khae Rai – Min Buri (34.5km)
  • Targeted contract signed: Jun 2017
  • Target operation: 2020

GREY LINE

  • Watcharaphol – Rama 9 Bridge (26.0km)
  • Awaiting EIA approval
  • Expected bidding (phase I): 2018
  • Target operation (phase I): 2022

Phase I: Watcharaphol – Thong Lo (16.3km)

LIGHT RAIL TRANSIT (LRT)

  • Bang Na – Suvarnabhumi (18.3km)
  • Expected bidding: 2017
  • Target operation: 2022

GREEN LINE EXT. (WESTERN)

  • Bang Wa – Taling Chan (7.0km)
  • Expected O&M award: 2018
  • Target operation: 2020

YELLOW LINE

  • Lad Prao– Sam Rong (30.4km)
  • Targeted contract signed: Jun 2017
  • Target operation: 2020

ORANGE LINE (WESTERN & EASTERN)

  • Taling Chan – MINBURI (39.6km)
  • Expected bidding: 2017
  • Target operation: 2023

GREEN EXT. (SOUTHERN)

  • Samut Prakarn – Bang Pu (7.0km)
  • Expected bidding: 2017
  • Target operation: 2021

GREEN EXT. (NORTHERN)

  • Khu Khot – Lum Lukka (7.0km)
  • Expected bidding: 2017
  • Target operation: 2021

BTS Group Earnings Presentation Appendix

GOLD LINE

  • Krung Thon Buri - Pracha Thipok (2.7km)
  • Targeted construction: 2017
  • Target operation: 2018

Phase I: Krung Thon Buri – Khlong San (1.7km)

slide-25
SLIDE 25

prepared by Investor Relations department BTS Group Holdings PCL

REMARKS: These additional proposal of the Pink and Yellow line is subject to negotiation with MRTA 25

  • Additional shuttle train with 2 new stations, 2.8km
  • From Si Rat station (PK10) to land near the Impact Challenger and near Muang

Thong Thani’s lake in order to provide a direct connection to Muang Thong Thani

Mass Transit Update

Extension of Pink Line

STATION 01 STATION 02

Number of Visitors >10mn people

KEY DESTINATIONS

  • Impact Challenger
  • Impact Exhibition and Convention

Center

  • Impact Arena
  • Impact Forum
  • The Portal Lifestyle Complex
  • Sukhothai Thammathirat Open

University

  • Silpakorn University (new campus)

Number of Residents 150,000 people

BTS Group Earnings Presentation Appendix

slide-26
SLIDE 26

prepared by Investor Relations department BTS Group Holdings PCL

REMARKS: These additional proposal of the Pink and Yellow line is subject to negotiation with MRTA 26

Mass Transit Update

Extension of Yellow Line

STATION 01 STATION 02

KEY DESTINATIONS

  • Extend 2.6km from Ratchada station (YL01) of Yellow Line to New Station close to

Ratchayothin intersection.

  • The new station would then linked via a walkway to station N10 (Phahon Yothin

24 of the Green North extension) which is now under construction

  • Major Cineplex Ratchayothin
  • SCB (Headquarter)
  • Central Lad Prao
  • Elephant building

BTS Group Earnings Presentation Appendix

WALKWAY CONNECTION

slide-27
SLIDE 27

prepared by Investor Relations department BTS Group Holdings PCL

3 November 2016: BTSC was approved by the Securities and Exchange Commission, Thailand (SEC) to issue up to THB 22,000mn senior unsecured debentures. The bonds will be issued in four tranches due in 2019, 2021, 2023, and 2026. Amount up to THB 22bn Tenor 3, 5, 7, 10 years (NC5) Rating A / Stable by Fitch and TRIS Rationale Purchase new rolling stocks and electrical and mechanical system (E&M) for the Northern and Southern Green Line extensions Issuance Date 10 November 2016 Tenor Amount up to Coupon Rate 3-year THB 5.5bn 2.46% 5-year THB 2.2bn 2.85% 7-year THB 4.1bn 3.30% 10-year (NC5) THB 10.2bn 3.87% Total THB 22bn 3.31% (average)

27

BTS Group Update

THB 22bn BTSC Debenture

BTS Group Earnings Presentation Appendix

slide-28
SLIDE 28

BTS Group Earnings Presentation

THANK YOU

28