BTS Group Holdings PCL 1Q 2016/17 earnings presentation 11 August - PowerPoint PPT Presentation

BTS Group Holdings PCL 1Q 2016/17 earnings presentation 11 August 2016 4Q & FY 14/15 earnings presentation 1 June 2016 THE LINE ASOKE - RATCHADA 1Q 2016/17 earnings presentation prepared by Investor Relations department BTS Group Holdings PCL

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 or 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, completenessor 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 or 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 connectionwith the presentationand 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 on as promise or representationof the Company as to the future. 1Q 2016/17 earnings presentation prepared by Investor Relations department 2 BTS Group Holdings PCL

Agenda Section 1 BTSG 1Q 2016/17 FINANCIAL PERFORMANCE Section 2 BUSINESS UPDATES Section 3 BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 1Q 2016/17 earnings presentation prepared by Investor Relations department 3 BTS Group Holdings PCL

1Q 2016/17 Financial Highlights PROFITABILITY • Reported net profit (after MI) decreased by 82% to RESILIENT MASS TRANSIT-RELATED REVENUE: THB 548mn mainly from the recognition of net gain of THB • 2,516mn on swap of investments with U City in 1Q 2015/16 Net farebox revenue +5.7% YoY • O&M revenue +5.9% YoY • Net recurring profit (before MI) and margin declined YoY due to lower property operating revenue, acquisition-related costs of MACO ‘s consolidation and higher SG&A of services BU ACCUMULATION OF FUTURE PROPERTY REVENUE: BALANCE SHEET STRENGTH THB 3.0bn “The Line Asoke- Ratchada” fully sold out, backlog: +28.0% to THB 13.6bn • THB 16.4bn cash and liquid investments* • Low leverage: Net debt / equity at 0.13x EXPANSION OF SERVICES REVENUE: • Credit rating: A/ Stable from FITCH& TRIS Total services revenue: * Cash and liquid investments exclude sinking fund and include cash bal. of THB +21% YoY to THB 199mn 3.3bn, current investments of THB 2.9bn, long term investments of THB 10.1bn CASH FLOW – INVESTMENT PHASE BTS DAILY TRADED VALUE (LTM) (as of 29 Jul 2016) • THB 750mn investment in Rabbit Line Pay THB 240.0mn (USD 6.8mn) • THB 626mn in net loans to BTS-SIRI Joint Venture • THB 295mn in net cash paid for purchase of MACO 1Q 2016/17 earnings presentation prepared by Investor Relations department 4 Section 1: BTSG 1Q 2016/17 Financial Performance BTS Group Holdings PCL

1Q 2016/17 Overview P&L SNAPSHOT Income Statement (THB mn) 1Q 2016/17 1Q 2015/16 %YoY 4Q 2015/16 % QoQ 1,553.5 1,571.9 (1.2%) 1,494.7 3.9% Operating Revenues 1 914.2 921.1 (0.7%) 844.5 8.3% Gross operating profits Operating EBITDA 2 636.1 664.4 (4.3%) 629.2 1.1% Recurring net profit – before MI 460.8 507.6 (9.2%) 581.0 (20.7%) Accounting EBITDA 3 990.7 4,313.6 (77.0%) 314.3 215.2% Net income (loss) 4 548.0 3,016.4 (81.8%) 44 N/A 58.8% 58.6% 56.5% Gross operating profit margin (%) Accounting EBITDA margin (%) 50.5% 82.9% 19.3% Recurring net profit margin (%) 26.5% 29.5% 34.9% Operating EBITDA margin (%) 40.9% 42.3% 42.1% 1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 including profit from discontinued operation 4 to equity holders of the parent 1Q 2016/17 OPERATING REVENUE BREAKDOWN OPERATING REVENUE COMPARISON (YoY) ( THB mn) 35 (91) Mass Transit 2 Media 1,572 35% 43% 1,553 21% 35 Services 6% 0% 13% (39)% Property 9% 1Q 15/16 Mass transit Media Property Services 1Q 16/17 1Q 2016/17 earnings presentation prepared by Investor Relations department 5 Section 1: BTSG 1Q 2016/17 Financial Performance BTS Group Holdings PCL

3 Months Cash Flow Snapshot ( THB mn)  Increase in Bills of Exchange  Net cash paid for other long-term payables investments  Cash received from sale of VGI  Cash paid for investments in JVs  Increase in loans to related parties stock  Cash paid for loans from financial  Release of collateral (restricted  Lower profit from institutions deposits) in relation to offshore operating activities loan  Increase in trade and  Dividend income 1,053 other receivables  Decrease in current investments 3,318** 323* (423) 2,365 Beginning cash CFO CFI CFF Ending cash (31/3/16) (30/6/16) * After tax (THB 28.9mn) and interest expense (THB 40.9mn) ** Excluding BTSC sinking fund and THB 13.0bn liquid investments 1Q 2016/17 earnings presentation prepared by Investor Relations department 6 Section 1: BTSG 1Q 2016/17 Financial Performance BTS Group Holdings PCL

Mass Transit OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN 1Q 1Q 4Q Int income from train Mass Transit (THB mn) YoY QoQ 2016/17 2015/16 2015/16 procurement Revenue 671.1 636.0 5.5% 639.6 4.9% 5% O&M revenue 417.3 394.0 5.9% 409.5 1.9% Share in BTSGIF 221.2 208.4 6.2% 197.3 12.1% Int income from train Share in BTSGIF 32.6 33.6 (3.0)% 32.8 (0.6)% procurement 1Q 2016/17 33% Costs of revenue 219.7 208.7 5.3% 213.0 3.1% O&M Gross profit 451.4 427.4 5.6% 426.6 5.8% 62% Operating EBITDA 458.4 431.8 6.2% 432.8 5.9% Gross margin (%) 67.3% 67.2% 66.7% Operating EBITDA margin (%) 68.3% 67.9% 67.7% KEY FACTORS HISTORICAL OPERATING REVENUE (THB mn) Share of NP in BTSGIF (THB mn) Farebox (THB mn)  O&M revenue rose by 6% YoY to THB 417mn mainly from the Int income from train procurement (THB mn) O&M (THB mn) contractually agreed increase in operating fee of the Sukhumvit extension and Silom extension  Share of net profit in BTSGIF increased 6% YoY to THB 221mn from 124 221 217 223 197 208 219 194 166 147 the increase in core network performance 157 208  Costs rose 5% YoY to THB 220mn largely due to higher repair and 157 33 33 174 34 34 34 33 33 33 35 34 maintenance expenses and staff costs - 33 33 32  Operating EBITDA margin improved YoY to 68.3% (67.9% in 1Q 20 - 417 409 379 379 392 392 394 395 395 386 15/16) as operating cost increased at a lower rate than the increase 308 288 283 in operating revenue 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 13/14 13/14 13/14 13/14 14/15 14/15 14/15 14/15 15/16 15/16 15/16 15/16 16/17 1Q 2016/17 earnings presentation prepared by Investor Relations department 7 Section 1: BTSG 1Q 2016/17 Financial Performance BTS Group Holdings PCL