BTS GROUP HOLDINGS PCL 2Q AND 1H 2018/19 EARNINGS PRESENTATION SET - - PowerPoint PPT Presentation

prepared by Investor Relations department BTS Group Holdings PCL

SET OPPORTUNITY DAY 27 NOVEMBER 2018

BTS GROUP HOLDINGS PCL

2Q AND 1H 2018/19 EARNINGS PRESENTATION

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: SET Opportunity Day Presentation 2

Agenda

Section

1

BTSG 2Q AND 1H 2018/19 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

BTS Group: SET Opportunity Day Presentation 3

prepared by Investor Relations department BTS Group Holdings PCL

2Q 2018/19 Highlights

• Operating EBITDA of THB 1,401mn, an increase of THB 526mn or 60.2% YoY,

largely from improved performances in Mass Transit and Media businesses

• Recurring Net Profit (after MI) of THB 830mn, an increase of THB 460mn or

124.4% YoY, chiefly from an increase in recurring gross profit, higher interest and investment income, being partially offset by higher finance cost and corporate income tax

• Reported Net Profit (after MI) of THB 670mn, an increase of THB 17mn or

2.7% YoY

• Balance sheet strength: THB 29.6bn cash & liquid investments*
• Low leverage: Increasing debt but adjusted net D/E at 0.56x

*Cash and liquid investments include cash bal. of THB 10.1bn, current investments of THB 9.0bn, L/T investments of THB 10.5bn

Investment phase continues;

• CFO: Net investment for construction of the Pink and Yellow Lines of THB

2.6bn and net investment for E&M works and trains procurement for the Southern and Northern Green Line extensions of THB 2.3bn

• CFI: Cash paid purchase of investment in Kerry Express of THB 5.0bn and net

investment for construction of the Pink and Yellow Lines of THB 3.7bn

4

PROFITABILITY FINANCIAL POSITION CASH FLOW

BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

WHAT’S NEW IN BTS GROUP

29 Jun: Notice-to-Proceed (NTP) for Pink & Yellow lines was issued for construction kick-off 20 Jul: VGI completed 23% acquisition of Kerry Express Thailand, total purchase price of THB 5.9bn 31 Jul: BTSC and KT entered into a 30-year O&M Services Agreement of the Gold Line Project Phase 1 (Krung Thonburi BTS Station – Khlong San District Office) 7 Sep: BTSG issued THB 9.5bn debenture with average interest rate of 3.38% 13 Sep: BTSG was selected as a member of Dow Jones Sustainability Indices (DJSI) Emerging Markets 2018 30 Oct: VGI launched new features of Rabbit Line Pay which enable RLP users to top up BTS cards through RLP 7 Nov: BTS-W4 issuance date confirmed as 30 Nov 18, with

• ne-year term from issuance date.

12 Nov: BSR Joint Venture between the Company (60%), STEC (20%) and RATCH (20%) submitted its bid for the High Speed Rail Project 12 Oct: U City EGM approved (i) the capital reduction to clear its deficit in order to pay dividend in the future and (ii) reverse-stock split to facilitate U’s trading liquidity Jul: MACO acquired “Trans. Ad Group” in order to support its digital media expansion domestically and internationally

prepared by Investor Relations department BTS Group Holdings PCL

Facts and Figures

5 BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

KEY HIGHLIGHTS

OPERATING REVENUE

 522% YoY

OPERATING EBITDA

 60% YoY

RECURRING NET PROFIT (AFTER MI)

 124% YoY

THB 15.8bn Operating Revenue

Chiefly from (i) Mass Transit: THB 14.2bn (+981% YoY) (increased by THB 12.9bn YoY largely from the recognition

• f construction revenue for the Pink and Yellow lines)

(ii) Media: THB 1.2bn (+24% YoY)

THB 1,401mn Operating EBITDA

Increased by THB 526mn or 60% YoY

9% Operating EBITDA Margin THB 830mn Recurring Net Profit (after MI)

rose 124% YoY, largely as a result of (i) Higher recurring gross profit (ii) Higher interest and investment income (THB mn)

375 938 810 472 830 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19 875 1,144 1,154 1,128 1,401 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19 2,543 4,875 3,574 3,049 15,806 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19 Largely from the recognition of construction revenue for the Pink and Yellow lines of THB 11.8bn 14,255

prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

INCOME STATEMENT (THB mn) 2Q 2018/19 2Q 2017/18 % YoY 1Q 2018/19 % QoQ 1H 2018/19 1H 2017/18 %YoY Operating Revenue1 15,806 2,543 522% 3,049 418% 18,855 5,653 234% Gross operating profit 1,824 1,295 41% 1,470 24% 3,294 2,574 28% Operating EBITDA2 1,401 875 60% 1,128 24% 2,529 1,791 41% Recurring net profit – after MI 830 370 124% 472 76% 1,302 762 71% Accounting EBITDA 1,681 1,420 18% 1,114 51% 2,794 2,508 11% Net income (loss)3 670 653 3% 387 73% 1,057 1,057 0% Gross operating profit margin (%) 11.5% 50.9% 48.2% 17.5% 45.5% Accounting EBITDA margin (%) 10.3% 48.6% 33.5% 14.3% 39.0% Recurring net profit margin – after MI(%) 5.1% 13.2% 15.2% 6.7% 12.5% Operating EBITDA margin (%) 8.9% 34.4% 37.0% 13.4% 31.7%

P&L SNAPSHOT

2Q 2018/19 OPERATING REVENUE BREAKDOWN

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

6 BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

2Q and 1H 2018/19 Overview

2,543 15,806 12,937 235 163

Q2 FY17/18 Mass Transit Media Property Services Q2 FY18/19

(45)% 172% 24% 981% (THB mn)

(72) 90% Mass Transit 8% Media 1% Property 1% Services

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

2Q 2018/19 KEY FACTORS

• Construction revenue for the Pink and Yellow Lines of THB 11.8bn was

recognised, start in this quarter

• Services revenue from the provision of E&M works and the train

procurement service for the Southern and Northern Green Line extensions of THB 1.5bn was recorded

• O&M revenue rose by 3% YoY to THB 452mn mainly from the

contractually agreed increase in the operating fee of existing extensions

• Farebox revenue up 2% YoY to THB 1,762mn from an increase in average

fare of 3.7% YoY

• Share of net profit in BTSGIF of THB 244mn (decreased 1% YoY)
• Costs rose by THB 12.4bn YoY to THB 13.2bn largely from the recognition
• f construction cost for the Pink and Yellow Lines and cost related to the

provision of services for new Green Line extensions

• Operating EBITDA margin was 7.6% (44.5% in 2Q 2017/18)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn) 2Q 2018/19 2Q 2017/18 %YoY 1Q 2018/19 %QoQ 1H 2018/19 1H 2017/18 %YoY Revenue 14,255 1,318 981% 1,813 686% 16,068 3,311 385% Costs of revenue 13,177 740 1680% 1,120 1077% 14,297 2,078 588% Gross profit 1,078 578 86% 694 55% 1,771 1,233 44% Operating EBITDA 1,085 586 85% 702 54% 1,787 1,250 43% Gross margin (%) 7.6% 43.8% 38.3% 11.0% 37.2% Operating EBITDA margin (%) 7.6% 44.5% 38.7% 11.1% 37.8%

OPERATING REVENUE BREAKDOWN

3% O&M Construction revenue for the Pink and Yellow Lines 82%

2Q 2018/19

Interest income related to Green Line extensions, Pink and Yellow Lines 2%

7

Mass Transit

BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

11% Services revenue from provision

• f E&M works & train

procurement for Green Line extensions 0% Farebox BRT Share in BTSGIF 2%

411 411 422 474 471 452 468 452 452 32 32 90 78 81 109 234 193 242 199 284 241 218 247 233 252 228 244 1,444 1,224 519 2,848 1,205 926 1,524 14 16 11,777 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19

Construction revenue for the Pink and Yellow Lines Farebox BRT Services revenue from provision of E&M works & train procurement Share of net profit in BTSGIF Interest income related to Green Line extensions, Pink and Yellow Lines O&M

prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

2Q 2018/19 KEY FACTORS

• Overall Media revenue surged 24% YoY to THB 1,205mn mainly

from improved performance in OOH Media and the consolidation of Trans.Ad Group (System Integrator Companies) by MACO

• OOH Media revenue* rose by 3% YoY to THB 909mn largely from

revenue growth of Outdoor and Office & Other media businesses

• Digital Services Business rose sharply by 226% YoY to THB 296mn

mainly due to the consolidation of Trans.Ad Group

• Costs increased by 47% YoY to THB 457mn primarily due to the

consolidation of Trans.Ad Group

• Operating EBITDA margin declined YoY to 44.6% (53.5% in 2Q

2017/18) 44% BTS – Related Media 22% Outdoor Media

MEDIA (THB mn) 2Q 2018/19 2Q 2017/18 %YoY 1Q 2018/19 %QoQ 1H 2018/19 1H 2017/18 %YoY Operating revenue 1,205 970 24% 1,077 12% 2,282 1,819 25% Costs of revenue 457 310 47% 309 48% 765 603 27% Gross profit 748 660 13% 768 (3)% 1,517 1,216 25% Operating EBITDA 537 519 4% 587 (8)% 1,125 940 20% Gross margin (%) 62.1% 68.1% 71.3% 66.5% 66.8% Operating EBITDA margin (%) 44.6% 53.5% 54.5% 49.3% 51.7%

2Q 2018/19

OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN

8

Media

9% Office Buildings and Others 25% Digital

*OOH Media includes Transit, Outdoor and Office Building and Other Media

BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

790 755 741 753 879 894 1,020 990 909 104 96 91 82 87 87 296

2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19

Digital Services Media OOH

prepared by Investor Relations department BTS Group Holdings PCL

Residential 16%

HISTORICAL OPERATING REVENUE (THB mn) 2Q 2018/19 KEY FACTORS

• Operating revenue was THB 87mn, decreasing 45% YoY, which was

primarily attributable to the deconsolidation of the majority of BTS property business as a result of the EBT of UE to U City in 4Q 17/18

• Commercial Property revenue was THB 73mn or 84% of Property revenue,

which now mainly comprises of revenue from Thana City Golf & Sports Club. The decrease of THB 72mn or 50% YoY was chiefly due to the deconsolidation of the 3 former BTS’ hotels and TST Tower office following the EBT of UE to U City

• Narrower share of net loss from investment in U City, our associate, of THB

99mn (THB 336mn loss in 2Q 2017/18) mainly from lower loss on impairment of assets, the transfer progress of Sansiri-JVs and improved

• perating performance of its hospitality business
• Operating costs dropped in tandem with the decline in operating revenue,

reducing by 32% YoY or THB 35mn to THB 73mn.

OPERATING PERFORMANCE

PROPERTY (THB mn) 2Q 2018/19 2Q 2017/18 %YoY 1Q 2018/19 %QoQ 1H 2018/19 1H 2017/18 %YoY Operating Revenue 87 159 (45)% 80 9% 168 306 (45)% Costs of revenue 73 108 (32)% 68 8% 141 203 (31)% Gross profit 14 51 (72)% 13 14% 27 103 (74)% Operating EBITDA 6 (4) N.A. 19 N.A. 24 (10) N.A. Gross margin (%) 16.3% 32.2% 15.6% 16.0% 33.7% Operating EBITDA margin (%) 6.4% N.A. 23.0% 14.4% N.A.

OPERATING REVENUE BREAKDOWN

2Q 2018/19

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

9

Property

84% Commercial & Others BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

142 147 186 146 159 174 160 80 87

2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 2Q 18/19

prepared by Investor Relations department BTS Group Holdings PCL

46,364 50,352 36,971 46,839 22,923 28,517

31 Mar 18 30 Sep 18 Total shareholders' equity Total non-current liabilities Total current liabilities

125,708 106,258 84,968 100,566 21,290 25,143

31 Mar 18 30 Sep 18 Total non-current assets Total current assets

125,708 106,258 Cash 31 Mar 18: THB 9.46bn 30 Sep 18: THB 10.08bn Current Investments 31 Mar 18: THB 5.67bn 30 Sep 18: THB 9.04bn Long-Term Investments 31 Mar 18: THB 15.95bn 30 Sep 18: THB 12.62bn Gross Debt 31 Mar 18: THB 47.17bn 30 Sep 18: THB 58.07bn Adjusted Net Debt* 31 Mar 18: THB 17.13bn 30 Sep 18: THB 28.43bn ***** Issued Ordinary Shares 31 Mar 18: 11,940.4mn 30 Sep 18: 11,845.2mn 80% 20% 20% 80% 23% 40% 37% 44% 21% 35%

2Q 2018/19:

1.15x

2Q 2017/18: 0.97x

Gross Debt to Equity

2Q 2018/19:

0.56x

2Q 2017/18: 0.30x

Adjusted Net Debt* to Equity

2Q 2018/19:

4.38x

2Q 2017/18: 3.36x

Adjusted Net Debt* to Recurring EBITDA

2Q 2018/19: 3.52x 2Q 2017/18: 2.75x

Interest Coverage

2Q 2018/19:

0.88x

2Q 2017/18: 0.91x

Current Ratio

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

10

Financial Position

*Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment

BTS Group: SET Opportunity Day Presentation Section 1: BTSG 2Q and 1H 2018/19 Financial Performance

Agenda

Section

1

BTSG 2Q and 1H 2018/19 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

11 BTS Group: SET Opportunity Day Presentation

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Update

A Member of the DJSI Emerging Markets 2018 - Transportation Sector

BTS Group: SET Opportunity Day Presentation Business Updates

Number

1

In DJSI Emerging Markets (Transportation Sector) Out of 64 companies who submitted the DJSI questionnaire in Transportation Sector

Number

4

12

prepared by Investor Relations department BTS Group Holdings PCL

Included in Masterplan 17 Oct 18 Included in Masterplan 17 Oct 18 NTP issued 29 Jun 18 NTP issued 29 Jun 18

Mass Transit Update

Progress of BTS Secured Lines

*Sources: Information is from MRTA, except for Gold Line, which based on Krungthep Thanakom report as of 13 Nov 2018. For Southern Green, Pink and Yellow: information as of 30 Sep 2018, Northern Green: information as of 31 Oct 2018. SOUTHERN GREEN LINE EXT. (Bearing - Samutprakarn) 12.6km/ 9 stations NORTHERN GREEN LINE EXT. (Mochit - Khukot) 18.2km/ 16 stations PINK LINE (Khae Rai – Min Buri) 34.5km/ 30 stations YELLOW LINE (Ladprao - Samrong) 30.4km/ 23 stations

FY 17/18 FY 18/19 FY 19/20 FY 20/21

Targeted 1st station: Ladprao (Aug 2019) Targeted full Operation (2020) Contract Signed

FY 21/22

Targeted

• peration

(Oct 2021) Targeted

• peration

(Oct 2021) Contract Signed Construction Period Construction Period Construction Period

Progress(%)*

73% 82%

PINK LINE (EXTENSION) (Sirat – Impact 2) 3.0m/ 2 stations YELLOW LINE (EXTENSION) (Ratchada - Ratchayothin) 2.6km/ 2 stations GOLD LINE PHASE 1 (Krung Thon Buri – Klong San) 1.7km/ 3 stations

Targeted Full operation (by Sep 2020) O&M contract Signed (31 Jul 18) Construction Period

BTS Group: SET Opportunity Day Presentation Business Updates

1 station Samrong

• pened

(Apr 2017) Targeted full Operation (6 Dec 2018)

11% 2% 5% 18% 10% 2%

Civil E&M

100%

13

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Progress of BTS Targeted Lines

Sources: MRTA, the Company

FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22

WESTERN GREEN LINE EXT.

(Bang Wa – Taling Chan) 7.0km/ 6 stations

Targeted Full operation Targeted Full operation Expected open bid/ award Expected open bid/ award LRT

(Bangna - Suvarnabhumi) 18.3km/ 14 stations

GREY LINE PHASE 1

(Watcharaphon - Thonglo) 16.3km/ 15 stations

ORANGE LINE

(Min Buri – Taling Chan) 39.6km/ 29 stations

HIGH SPEED RAIL

(Don Mueang – Suvarnabhumi – U-Tapao) 220km/ 15 stations

Expected open bid/ award Expected open bid/ award Targeted Full operation Targeted Full operation Targeted Full operation

FY 22/23 FY 23/24 FY 24/25

Expected best bid announcement Construction Period Construction Period Construction Period Construction Period Construction Period

BTS Group: SET Opportunity Day Presentation Business Updates 14

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Expected the Announcement of HSR Best Bid in December 2018

Dec 2018 Expected Best Bid Announcement BTS Group: SET Opportunity Day Presentation Business Updates

Project at a Glance

A 50-year PPP net cost with subsidy with network Length of 220km (15 stations) 18 Jun-9 Jul 2018 12 Nov 2018 13 Nov 2018 Request for Proposal (RFP) selling period Bid Submission Open bidding documents

Source: High Speed Rail’s Market Sounding

1 Existing ARL Suvarnabhumi-Phayathai ARL Extension Phayathai-Don Mueang 3 High Speed Rail Bangkok-U-Tapao 4 Makkasan Area Land Development 5 Transit Oriented Development (TOD) 2

High Speed Rail Station Existing Maintenance Depot New Maintenance Depot

Don Mueang Bang Sue Phayathai Makkasan Suvarnabhumi Chachoengsao Chon Buri Si Racha Pattaya U-Tapao 1 3 Makkasan Area Land Development 4 Transit Oriented Development 5 2

BSR

60% 20% 20%

(31 companies bought High Speed Rail RFP) Consortiums submitted bid of HSR

2

CP

Consortium

70% 15% 10% 5%

Source: The Bangkok Insight

15

prepared by Investor Relations department BTS Group Holdings PCL

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) Rationale Purchase new rolling stocks and E&M for the Northern and Southern Green Line extensions Issuance Date 10 November 2016

THB 22BN BTSC DEBENTURE:NEW GREEN EXTENSIONS THB 63.4BN SYNDICATED LOAN: PINK AND YELLOW LINES

10 October 2017: BSR JV signed the syndicated loan agreement with three banks, at a total value of up to THB 63.36bn. Credit Facilities Total of THB 63.36bn

• THB 31.68bn for Pink Line
• THB 31.68bn for Yellow Line

Syndicate Banks BBL, KTB, SCB Loan Term 17 years and 3 months, repayments starting from first operation date Rationale Financing of both Pink and Yellow lines Tenor Amount up to Coupon Rate 3-year THB 1.5bn 2.24% 5-year THB 1.5bn 2.64% 10-year THB 2.0bn 3.65% 12-year (NC5) THB 2.0bn 3.78% Total THB 7.0bn 3.17% (average) Rationale Repay existing debts and/or investment and/or financing the working capital of the Company Issuance Date 26 December 2017

THB 7BN BTSG DEBENTURE

Tenor Amount up to Coupon Rate 2-year THB 3.55bn 2.58% 5-year THB 1.29bn 3.25% 10-year THB 4.66bn 4.03% Total THB 9.50bn 3.38% (average) Rationale Repay existing debts and/or investment and/or financing the working capital of the Company Issuance Date 7 September 2018

THB 9.5BN BTSG DEBENTURE (updated)

Mass Transit Update

CAPEX for newly-awarded lines - secured by debt financing

BTS Group: SET Opportunity Day Presentation Business Updates 16

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

Digital Transformation Project

BTS Group: SET Opportunity Day Presentation Business Updates

• No. of screen: 5 screens

Where: Chong Non Si When: 3Q 2018/19

• No. of screen: 35 screens

Where: Chong Nonsi, Phrom Phong, Sala Dang and Asok When: 2Q 2019/20 PHASE 1 PHASE 2

17

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

Empowering Digital Strategy through Strategic Partnership

BTS Group: SET Opportunity Day Presentation Business Updates

TRANS.AD GROUP’S BUSINESS OVERVIEW and STRUCTURE

81.65% 89%

100%

MACO Eye on Ads Trans.Ad Roctec

Multimedia display systems provider Provider of multimedia & communications systems, system integrations and total network infrastructure

Trans.Ad Group

LCD in Stations and Buildings Platform Screen Door Control System & Media Management Passenger Information

LED outdoor

18

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

Revamping ‘More-tap’ to the ‘Wallet’ page in LINE Application

BTS Group: SET Opportunity Day Presentation Business Updates

• One click to ‘Wallet’ feature in LINE app.
• Add BTS function to provide a smarter and easier journey
• n BTS.

USER INTERFACE – NEW VERSION RABBIT CARD circulation reached 9.8mn cards. Nearly achieving its full-year target of 10.5mn cards. 9.0 9.1 9.2 9.3 9.4 9.6 9.8 10.5

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19

FY Target

+9.3%

RABBIT LINEPAY serves more than 4.5mn users, an increase of 55.2% in less than 6 months. So easy! 2.9 3.1 3.2 3.4 3.8 4.2 4.5 5.3

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19

FY Target

+55.2%

partnership with AIS

Single e- wallet with Rabbit Card

19

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

Delivering Marketing Solutions Synergy through Logistics Platform

BTS Group: SET Opportunity Day Presentation Business Updates

Retarget high prospect customers online Locate the right target audience and drive product awareness with 100% viewability Encourage perfect trial at home Obtain product user feedback for actionable marketing insights SMART SAMPLING THROUGH KERRY EXPRESS

20

Agenda

Section

1

BTSG 2Q and 1H 2018/19 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

BTS Group: SET Opportunity Day Presentation 21

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA

2018/19 BTS Group Targets and CAPEX

FY 2018/19 BTS GROUP TARGETS

THB 5bn

Targeted Media Revenue (revised from THB 4.4-4.6bn)

4-5%

Core Network ridership growth

1.5-2%

Core Network average fare increase

30%

Train O&M revenue growth

THB 7-9bn

Revenue from E&M provision and train procurement for Green Line South and North extensions

THB 350mn

Targeted BTS Group Property Revenue (more details in U City presentation)

THB 20-25bn

Construction revenue for Pink and Yellow Lines

THB 6-6.7bn

Targeted U City Property Revenue

≥ 25% EBITDA margin

(at U City level)

40-45%

EBITDA margin

20-25%

NPAT margin

THB 0.6-0.7bn

Interest income from train procurement for Green Line extensions and construction revenue for Pink and Yellow lines

MASS TRANSIT

FY 2018/19 CAPEX: THB 27-34BN

THB 26-32bn

(Excludes: BTSGIF CAPEX )

• THB 6-7bn E&M and rolling stocks for Green

Line South and North extensions

• THB 20-25bn for Pink and Yellow

construction

THB 1.1bn THB 0.4bn

(Excludes: Real estate development cost)

PROPERTY

BTS Group: SET Opportunity Day Presentation Appendix 22

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Update

BTS-W4 Term Sheet

BTS Group: SET Opportunity Day Presentation Appendix

TICKER BTS-W4 TERM 1 YEAR FROM THE ISSUANCE DATE ISSUANCE DATE 30 NOVEMBER 2018 EXPIRY DATE 29 NOVEMBER 2019 WARRANTS PRICE NIL

• NO. OF WARRANTS

UP TO 1,755,034,187 UNITS ALLOCATION TO EXISTING SHAREHOLDERS AT THE RATIO OF 9 EXISTING BTS SHARES : 1 BTS-W4 EXERCISE RATIO 1 BTS-W4 TO 1 NEW COMMON SHARE OF BTS EXERCISE PRICE THB 10.50 PER SHARE EXPECTED MAXIMUM PROCEEDS THB 18.4BN EXERCISE PERIOD QUARTERLY

WARRANTS TERMS AND CONDITIONS

23

prepared by Investor Relations department BTS Group Holdings PCL

2Q 2018/19

• Ridership = 61.2mn trips, -1.5% YoY, +7.1% QoQ
• Average fare = THB 28.8 per trip, +3.7% YoY, -0.8% QoQ
• Average weekday ridership = 747,472 trip, -1.2% YoY

Historical average fare & % growth (YoY) Historical ridership & % growth (YoY)

Mass Transit Update

Quarterly Ridership in BTS Core Network

Explanation

• Ridership: YoY : slightly dropped partly as a result of passengers’ sensitivity

to the fare increases in the core skytrain network. QoQ: increased from (i) more weekdays in this quarter (several holidays in last quarter such as the Song Kran Festival and National Labor Day) and (ii) low-base effect from train services disruption in prior quarter.

• Average fare: YoY rose from fare increase since Oct 2017 and the

adjustments to promotional price for stored-valued card since Apr 2018. * Excluding the impact of free-trip allowance to passengers from train services disruption

BTS Group: SET Opportunity Day Presentation Appendix 62.2 60.8 60.2 57.1 61.2 0.8% 1.7% 0.2%

• 1.5%
• 1.5%

7.1%

• 2.2%
• 1.0%
• 5.0%

7.1%

• 50.0%

2Q 2017/18 3Q 2017/18 4Q 2017/18 1Q 2018/19 2Q 2018/19 Ridership (mn trips) Passenger Growth (YoY) Passenger Growth (QoQ)

27.8 28.7 28.8 29.0* 28.8

• 0.2%

3.2% 3.3% 3.9% 3.7%

• 0.6%

3.2% 0.4% 0.9%

• 0.8%

2Q 2017/18 3Q 2017/18 4Q 2017/18 1Q 2018/19 2Q 2018/19 Average Fare (THB/trip) Average Fare Growth (YoY) Average Fare Growth (QoQ)

24

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

October 2018 and YTD Core Network Ridership

BTS Group: SET Opportunity Day Presentation Appendix

OCT 18 SUMMARY

• Ridership = 138.5mn trips, -0.8% YoY
• Average fare* = THB 28.9 / trip, +3.7% YoY
• Farebox revenue* = THB 4,003.5mn, +2.9% YoY
• Ridership = 20.1mn trips, 3.8% YoY, 0.7% MoM
• Average fare* = THB 28.9 / trip, +3.4% YoY
• Farebox revenue* = THB 581.2mn, +7.4% YoY
• Average weekday ridership = 739,858 trips, 1.5% YoY

FY 2018/19 Ridership Growth Target

+4-5%

YTD Ridership: Actual

• 0.8%

FY 2018/19 Avg Fare Increase Target

+1.5-2%

YTD

• Avg. Fare: Actual

+3.7%

FY 2018/19 Fare-box Increase Target

+5.5-7%

YTD Farebox: Actual

+2.9%

YTD SUMMARY (APR-OCT, 7 MONTHS)

*Before discount

Ridership Fare

19.3 20.0 19.7 21.5 19.9 20.1

• 0.1%
• 2.7%
• 2.2%

0.7%

• 3.2%

3.8%

• 6.0%
• 3.0%

18.0 18.5 19.0 19.5 20.0 20.5 21.0 21.5 22.0

May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Ridership (mn trips) % YoY ridership growth 29.0 28.8 28.8 28.9 28.7 28.9 3.7% 4.6% 3.3% 4.0% 3.7% 3.4%

• 2.0%
• 1.5%
• 1.0%
• 0.5%

28.5 28.6 28.6 28.7 28.7 28.8 28.8 28.9 28.9 29.0 29.0 29.1

May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Average fare price (THB) % Change YoY 25

prepared by Investor Relations department BTS Group Holdings PCL

ROUTE KRUNG THON BURI – KLONG SAN (PHASE I): 1.7KM 3 STATIONS

• NO. OF

STATIONS 3 OVERGROUND STATIONS (G1 TO G3)

• G1: KRUNG THON BURI
• G2: CHAROEN NAKORN
• G3: KLONG SAN

TYPE MONORAIL FEEDER LINE TRAINS THREE 2-CAR AUTOMATIC PEOPLE MOVER (APM) TRAINS SYSTEM CAPACITY 4,000-12,000 PPHPD (5-6 MIN HEADWAY)

E&M AND O&M SERVICES PROVIDED BY BTSC

Source: http://www.raillynews.com

31 JUL 2018 O&M Services Agreement signed 1 SEP 2020 Targeted Commercial Operation Date (30 years operation*) 1 AUG 2018 NTP issued for E&M kick-off 9 MAR 2018 Civil work construction began 27 FEB 2018 Sale and installation of E&M works agreement signed 15 DEC 2017 KT awarded civil contract to ITD

TIMELINE

KRUNG THONBURI BTS STATION – KHLONG SAN 1.7KM

GOLD PHASE 1

*Such term can be terminated earlier if the operation and maintenance services agreement of the Bangkok Mass Transit System, in which BTSC has been engaged by Krungthep Thanakom until 2 May 2042, has not been extended.

SALE AND INSTALLATION OF E&M WORKS AGREEMENT

• E&M VALUE (INCL.VAT) OF THB 765.59MN

O&M SERVICES AGREEMENT

• 30 YEARS FROM 1ST COMMERCIAL OPERATION DATE
• O&M SERVICES INCLUDE THE OPERATION OF TRAINS,

MANAGEMENT, MAINTENANCE OF THE MASS TRANSIT SYSTEM, FARE COLLECTION AND THE PROCUREMENT OF ROLLING STOCK

• O&M VALUE (INCL.VAT) OF THB 13,520MN

Mass Transit Update

Gold Line Phase 1 – Project at a Glance

BTS Group: SET Opportunity Day Presentation Appendix 26

prepared by Investor Relations department BTS Group Holdings PCL

Property Update

U’s Shareholders Approve of Reverse Stock-split and Capital Reduction

At the U City EGM held at Eastin Makkasan Hotel on 12 October, shareholders approved all agendas, including: 1) A reduction of the Company’s registered capital 2) A reverse stock split of U City ordinary and preferred shares at a ratio of 100:1 3) A minor capital increase via private placement for rounding fractional shares 4) A capital decrease for the reduction of the Company’s deficit and share discount Board of Directors Approved the transaction U City EGM record date U City EGM for shareholders’ approval Private placement (PP) subscription for rounding purpose Par value per share adjusted to THB 100 Rights adjustment of all warrants (U-W1 -> U-W4) Commence trading with new par value after reverse stock split 30 Aug 18 12 Oct 18 End of Oct 18 14 Sep 18 Mid of Oct 18 Mid of Nov 18 Commence trading with new par value of THB 3.2 after capital reduction End of Dec 18 Creditor objection period (2 months) BTS Group: SET Opportunity Day Presentation Appendix 27

prepared by Investor Relations department BTS Group Holdings PCL

Property Update

Proforma Pre- and Post-transactions

Unit Pre Reverse Stock Split and Capital Reduction (Separate F/S as of 30 June 2018) Post Reverse Stock Split 100:1 and Capital Reduction* Registered capital THB mn 1,682,739 44,900 Paid up capital THB mn 935,429 29,934 Share discount THB mn (895,601)

• Retained earnings

(Retained loss/deficit) THB mn (9,519) (25)** Other components THB mn (349) 10 Total shareholders’ equity THB mn 29,960 29,919 Registered shares mn shares 1,682,739 14,031 Paid up shares mn shares 935,429 9,354 Par value/share THB 1.00 3.20 Trading price/share THB 0.03 3.00 * Based on management accounts as of 30 Aug 2018 **Including operating loss, impairment of investment in NMG and allowance for impairment of investment in BMP during 1 July – 30 Aug 2018 BTS Group: SET Opportunity Day Presentation Appendix 28