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

SLIDE 1

prepared by Investor Relations department BTS Group Holdings PCL

4Q & FY 14/15 earnings presentation 1 June 2016

BTS Group Holdings PCL

1Q 2016/17 earnings presentation

1Q 2016/17 earnings presentation

11 August 2016

THE LINE ASOKE - RATCHADA

SLIDE 2

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

• 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, 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

• 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 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

• n as promise or representationof the Company as to the future.

2 1Q 2016/17 earnings presentation

SLIDE 3

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 1Q 2016/17 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

3 1Q 2016/17 earnings presentation

SLIDE 4

prepared by Investor Relations department BTS Group Holdings PCL

PROFITABILITY

• Reported net profit (after MI) decreased by 82% to

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 recurring profit (before MI) and margin declined YoY due

to lower property operating revenue, acquisition-related costs

• f MACO ‘s consolidation and higher SG&A of services BU

1Q 2016/17 Financial Highlights

BTS DAILY TRADED VALUE (LTM)

(as of 29 Jul 2016)

THB 240.0mn (USD 6.8mn)

RESILIENT MASS TRANSIT-RELATED REVENUE:

• Net farebox revenue +5.7% YoY
• O&M revenue +5.9% YoY

4 1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

• THB 16.4bn cash and liquid investments*
• Low leverage: Net debt / equity at 0.13x
• Credit rating: A/ Stable from FITCH& TRIS

BALANCE SHEET STRENGTH

* Cash and liquid investments exclude sinking fund and include cash bal. of THB 3.3bn, current investments of THB 2.9bn, long term investments of THB 10.1bn

• THB 750mn investment in Rabbit Line Pay
• THB 626mn in net loans to BTS-SIRI Joint Venture
• THB 295mn in net cash paid for purchase of MACO

CASH FLOW – INVESTMENT PHASE EXPANSION OF SERVICES REVENUE: Total services revenue: +21% YoY to THB 199mn

ACCUMULATION OF FUTURE PROPERTY REVENUE: THB 3.0bn “The Line Asoke-Ratchada” fully sold out, backlog: +28.0% to THB 13.6bn

SLIDE 5

prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

1Q 2016/17 Overview

Income Statement (THB mn) 1Q 2016/17 1Q 2015/16 %YoY 4Q 2015/16 % QoQ Operating Revenues1 1,553.5 1,571.9 (1.2%) 1,494.7 3.9% Gross operating profits 914.2 921.1 (0.7%) 844.5 8.3% Operating EBITDA2 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 EBITDA3 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 Gross operating profit margin (%) 58.8% 58.6% 56.5% 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%

P&L SNAPSHOT

43% Mass Transit 35% Media 9% Property 13% Services

1Q 2016/17 OPERATING REVENUE BREAKDOWN

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

5 1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

1,572 1,553 35 2 (91) 35 1Q 15/16 Mass transit Media Property Services 1Q 16/17 6% 0%

(THB mn)

(39)% 21%

SLIDE 6

prepared by Investor Relations department BTS Group Holdings PCL

2,365 3,318** 323* (423) 1,053 Beginning cash (31/3/16) CFO CFI CFF Ending cash (30/6/16)

3 Months Cash Flow Snapshot

6

* 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 Section 1: BTSG 1Q 2016/17 Financial Performance

• Net cash paid for other long-term

investments

• Cash paid for investments in JVs
• Increase in loans to related parties
• Release of collateral (restricted

deposits) in relation to offshore loan

• Dividend income
• Decrease in current investments
• Increase in Bills of Exchange

payables

• Cash received from sale of VGI

stock

• Cash paid for loans from financial

institutions

• Lower profit from
• perating activities
• Increase in trade and
• ther receivables

(THB mn)

SLIDE 7

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit

7

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• O&M revenue rose by 6% YoY to THB 417mn mainly from the

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

the increase in core network performance

• Costs rose 5% YoY to THB 220mn largely due to higher repair and

maintenance expenses and staff costs

• Operating EBITDA margin improved YoY to 68.3% (67.9% in 1Q 20

15/16) as operating cost increased at a lower rate than the increase in operating revenue

1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

Mass Transit (THB mn) 1Q 2016/17 1Q 2015/16 YoY 4Q 2015/16 QoQ Revenue 671.1 636.0 5.5% 639.6 4.9% 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 procurement 32.6 33.6 (3.0)% 32.8 (0.6)% Costs of revenue 219.7 208.7 5.3% 213.0 3.1% Gross profit 451.4 427.4 5.6% 426.6 5.8% 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%

62% O&M Share in BTSGIF 33%

1Q 2016/17

Int income from train procurement 5%

283 288 308 379 379 392 386 392 394 395 395 409 417

32 33 33 35 34 34 33 34 34 33 33 33 33

208

• 124

174 157 157 166 217 194 147 208 223 219 197 221

1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15 2Q 14/15 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 Share of NP in BTSGIF (THB mn) Farebox (THB mn) Int income from train procurement (THB mn) O&M (THB mn)

SLIDE 8

prepared by Investor Relations department BTS Group Holdings PCL

Media

8

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Overall Media revenue up 0.5% YoY to THB 542mn from an

increase in Outdoor and Office Buildings & Other Media

• Outdoor and Office Buildings & Other Media grew THB 68mn to

THB 120mn mainly from (i) the expansion in the Outdoor Media segment by acquiring an additional 12.46% in MACO (ii) the increase in the number of office buildings, which grew to 142 buildings (103 buildings in 1Q 2015/16)

• Operating EBITDA margin improved to 60.4% (58.8% in 1Q

2015/16) from lower contribution of lower margin Modern Trade business 22% Office Buildings & Others 78% BTS - Related

Media (THB mn) 1Q 2016/17 1Q 2015/16 YoY 4Q 2015/16 QoQ Operating revenue 541.7 539.2 0.5% 491.0 10.3% Costs of revenue 160.4 177.5 (9.6)% 135.9 18.0% Gross profit 381.3 361.6 5.4% 355.1 7.4% Operating EBITDA 327.1 317.2 3.1% 333.2 (1.8)% Gross margin (%) 70.4% 67.1% 72.3% Operating EBITDA margin (%) 60.4% 58.8% 67.9%

1Q 2016/17

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

844 847 798 632 754 787 780 605 539 527 512 491 542

1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15 2Q 14/15 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17

SLIDE 9

prepared by Investor Relations department BTS Group Holdings PCL 950 863 686 436 319 331 341 364 233 331 161 171 142 554 1,411 9,469

1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15 2Q 14/15 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17

Operating revenue Proceeds from land sale

THB 9,469 Sale of assets to U City

Property

9

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Operating revenue was THB 142mn, decreasing 39% YoY from the

reduction in both commercial property and residentil property

• Residential property revenue was THB 10mn, down 86% YoY

mainly due to no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred

• Commercial property revenue fell 18% YoY to THB 132mn

following the disposal of EGS to U City on 20 Apr 2015

• Recorded share of losses from U City of THB 32mn, BTS-SIRI JVs of

THB 60mn and Bayswater of THB 33mn in 1Q 2015/16

• Operating costs decreased by 35% YoY to THB 91mn. Operating

EBITDA decreased to -2%.

THB 1,411 Mo Chit land THB 554 Sale of non-core land

7% Residential Commercial & Others 93%

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

Property (THB mn) 1Q 2016/17 1Q 2015/16 YoY 4Q 2015/16 QoQ Operating Revenue 141.9 233.0 (39.1)% 171.4 (17.2)% Costs of revenue 90.9 140.1 (35.1)% 101.0 (10.0)% Gross profit 51.0 93.0 (45.2)% 70.4 (27.6)% Operating EBITDA (2.9) 13.9 (120.9)% 17.4 (116.7)% Gross margin (%) 35.9% 39.9% 41.1% Operating EBITDA margin (%) (2.0)% 5.9% 10.2%

1Q 2016/17

1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

SLIDE 10

prepared by Investor Relations department BTS Group Holdings PCL

Services

10

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Revenue

Revenue increased by 21% YoY to THB 199mn from i) increase in revenue from BPS of THB 23mn YoY, ii) increase in revenue from Rabbit Internet Group of THB 12mn and iii) increase in ChefMan restaurant of THB 9mn YoY

• Costs & SGA

Costs increased by 35% YoY or THB 44mn to THB 168mn. SG&A rose by 98% YoY to THB 85mn. Key costs and SG&A items were mainly from i) staff costs, ii) marketing expenses of Rabbit Internet Group and BPS projects 46% ChefMan BSS 36%

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

Services (THB mn) 1Q 2016/17 1Q 2015/16 YoY 4Q 2015/16 QoQ Revenue 198.7 163.7 21.4% 192.7 3.1% Costs of revenue 168.4 124.6 35.2% 200.3 (16.0)% Gross profit 30.4 39.1 (22.3)% (7.7) N/A Operating EBITDA (27.6) 18.7 N/A (60.1) N/A Gross margin (%) 15.3% 23.9% 4.0% Operating EBITDA margin (%) (13.9)% 11.4% (31.2)%

1Q 2016/17

1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

BPS 12%

78 104 107 108 126 144 138 139 164 195 190 193 199

1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15 2Q 14/15 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17

Rabbit Internet Group 6%

SLIDE 11

prepared by Investor Relations department BTS Group Holdings PCL 46,917 48,569 5,796 5,877 12,455 13,300 31-Mar-16 30-Jun-16

Total current liabilities Total non-current liabilities Total shareholders' equity

67,745 55,002 56,334 10,167 11,411 31-Mar-16 30-Jun-16

Total current assets Total non-current assets

65,169 67,745

Cash 31 Mar 16: THB 2.36bn 30 Jun 16: THB 3.32bn Current Investments 31 Mar 16: THB 3.27bn 30 Jun 16: THB 2.94bn Long-Term Investments 31 Mar 16: THB 9.56bn 30 Jun 16: THB 10.10bn Restricted Deposits 31 Mar 16: THB 1.24bn 30 Jun 16:

• Gross Debt

31 Mar 16: THB 9.28bn 30 Jun 16: THB 9.69bn Net Debt 31 Mar 16: THB 6.92bn 30 Jun 16: THB 6.37bn ***** Issued Ordinary Shares 31 Mar 16: 11,929.3mn 30 Jun 16: 11,929.3mn

Balance Sheet

84% 16% 16% 84% 19% 72% 9% 72% 19% 9%

1Q 2016/17:

0.20x

1Q 2015/16: 0.08x

Gross Debt to Equity

11

65,169

1Q 2016/17:

0.13x

1Q 2015/16: (0.00)x

Net Debt to Equity

1Q 2016/17:

2.39x

1Q 2015/16: (0.01)x

Net Debt to Operating EBITDA

1Q 2016/17: 7.22x 1Q 2015/16: 8.29x

Interest Coverage

1Q 2016/17:

0.86x

1Q 2015/16: 2.40x

Current Ratio

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

1Q 2016/17 earnings presentation Section 1: BTSG 1Q 2016/17 Financial Performance

SLIDE 12

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 1Q 2016/17 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

12 1Q 2016/17 earnings presentation

SLIDE 13

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Core Network (Quarter)

13

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

• Quarterly ridership = 56.5mn trips, +1.0% YoY, -4.4% QoQ
• Quarterly average weekday ridership = 720,857 trips, +1.5% YoY
• Net farebox revenue = THB 1,586.7mn, +5.7% YoY, -3.9 QoQ
• Quarterly average fare = THB 28.1 per trip, +4.6% YoY, +0.6% QoQ

1Q 2016/17 earnings presentation Section 2: Business Updates

55.9 58.5 59.1 59.1 56.5 9.0% 7.1% 4.7% 4.8% 1.0%

• 0.9%

4.7% 1.0% 0.0%

• 4.4%
• 50. 0%

0.0% 48.0 53.0 58.0 63.0

1Q 2015/16 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17 Ridership (mn trips) Passenger Growth (YoY) Passenger Growth (QoQ) 26.9 27.4 27.8 27.9 28.1

• 0.7%

2.8% 3.5% 4.0% 4.6% 0.0% 2.0% 1.6% 0.4% 0.6%

24.0 29.0

1Q 2015/16 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17 Average Fare (THB/trip) Average Fare Growth (YoY) Average Fare Growth (QoQ)

SLIDE 14

prepared by Investor Relations department BTS Group Holdings PCL

JUL 16 SUMMARY

MASS TRANSIT UPDATE

Jul 2016 & YTD 2016/17

YTD SUMMARY (APRIL – JULY, 4MTH)

• YTD ridership = 76.7mn trips, +0.8% YoY
• YTD average fare = THB 28.1 / trip, 4.3% YoY
• YTD farebox revenue = THB 2,154.2mn, +5.1% YoY
• Ridership = 20.2mn trips, +0.1% YoY, +0.1% MoM
• Average fare = THB 28.1/trip, +3.5% YoY
• Fare-box revenue = THB 566.7mn, +3.6% YoY
• Average weekday ridership = 755,364 trips, +4.4% YoY

FY 2016/17 Ridership Growth Target 5-6% YTD Ridership Growth Actual +0.8% FY 2016/17 Fare Increase Target 1% YTD Fare Increase Actual +4.3%

14

28.1 27.9 27.9 28.5 28.3 27.6 28.0 4.5% 4.4% 3.2% 4.8% 4.5% 4.5% 3.5%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

27.00 27.20 27.40 27.60 27.80 28.00 28.20 28.40 28.60

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Average fare price (THB) % Change YoY 19.4 18.9 20.7 17.8 18.5 20.2 20.2 4.0% 6.1% 4.2%

• 1.0%

0.0% 3.9% 0.1%

• 2.0 %
• 1.0 %

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 21.00

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Ridership (mn trips) % YoY ridership growth

1Q 2016/17 earnings presentation Section 2: Business Updates

SLIDE 15

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Timeline and Civil Work Construction Progress

15 1Q 2016/17 earnings presentation Section 2: Business Updates

MAR 2012 Civil works start MAR 2016 MOU between MRTA & BMA signed 2016 Expected O&M contract signed DEC 2018 Targeted full operation GREEN SOUTH (12.8km) GREEN NORTH (18.4km) MAR 2017 Expected 1st station operation MID 2015 Civil works start MAR 2016 MOU between MRTA & BMA signed 2016 Expected O&M contract signed MID 2019 Targeted full operation Civil Work Construction Progress (as of Jul 2016)

Green South

91%

Green North

10%

Source: MRTA, the Company

EARLY 2018 Expected 1st station operation

SLIDE 16

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Timeline / Progress

16 1Q 2016/17 earnings presentation Section 2: Business Updates

PINK (36.0km) and YELLOW (30.4km) 6 JUL – 5 AUG 2016 RFP is available for sale 17 NOV 2016 Bid envelope opening 2020 Targeted operation year 7 NOV 2016 The tender submission 2017

• Expected contract signed
• Expected civil construction

start ORANGE (23.0km) THAILAND CULTURAL CENTER – MIN BURI 15 JUL – 29 JUL 2016 RFP for civil work/ E&M is available for sale 2016 Expected construction start 2020 Targeted operation year 31 OCT 2016 The tender submission 26 JUL 2016 The Cabinet approved civil work construction FEB 2017 Expected construction start 2021 Targeted operation year SEP 2016 Expected bidding RED (26.0km): BANG SUE - HUA LAMPONG AND BANG SUE - PHAYA THAI – MAKKASAN - HUA MAK

Source: MRTA, the Company, http://www.thaigov.go.th

RFP BUYERS PINK YELLOW

• 1. BTS GROUP

/ / 2.RATCH / /

• 3. BEM

/ /

• 4. ITD

/ /

• 5. STEC

/ /

• 6. SK ENGINEERING*

/ /

• 7. CHINA COMMU

CONSRUCTION*

• /
• 8. SINOHYDRO CORP*

/ /

• 9. CHINA RAILWAY*

/ /

• 10. TRC

/ /

• 11. BTSC

/ /

• 12. PLE

/ /

• 13. CNT

/ /

• 14. RATP DEV

TRANSDEV ASIA* / /

• 15. SMRT INTER*

/ /

• 16. UNIQ

/ /

• 17. NWR

/ /

* Foreign buyers

SLIDE 17

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA UPDATE

Nationwide Integrated Media Platform

17 1Q 2016/17 earnings presentation Section 2: Business Updates

PROVEN WINNER GROWTH SPRINGBOARD GROWTH PROSPECTS

61%

market share

LONG TERM

contracts end 2029 & 2042

67%

GP margin

>720,000

viewers reached daily

4X

expected capacity

TRANSIT

 Leader

66%

market share

(Grade A&B building)

142

• ffice buildings

70%

GP margin

>700,000

viewers reached daily

219

condominiums

OFFICE

 Leader

37.42%

in MACO

389

networking billboards

56%

GP margin

178

mega billboards

654

street furniture

OUTDOOR

 Leader

ONLINE & OFFLINE 5MN

card holders

90

• ffline merchants

>30MN

potential e-wallet members

33MN

potential online impressions

DIGITAL To be the leader

20%

in Aero Media

342

LCD screens

57

aerobridges

115MN

viewers reached annually

7,000

trolleys

AVIATION To be the leader

TARGETED 16MN

monthly emails targeted

2.6MN

monthly deliveries (Kerry)

2MN

registered loyalty members

ACTIVATION

To be the leader

*Transit, Office and Outdoor information as of 1Q 2016/17. Aviation, Digital and Activation information as of 2015.

SLIDE 18

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA UPDATE

Media’s Projects in the Pipeline

18 1Q 2016/17 earnings presentation Section 2: Business Updates

MACO AGREED TO ACQUIRE 70% IN MULTI SIGN

• MACO announced an agreement to acquire 70% in Multi Sign

(THB 439mn)

• Multi Sign is one of the leading outdoor media company with

more than 13 years experience in outdoor media advertising.

• MACO will expand its nationwide footprint through Multi Sign.
• MACO & Multi Sign’ revenue capacity is expected to increase

from THB 900mn to THB 1,200mn.

• Potential from a conversion from existing static media to digital

media at strategic locations.

16% 20% 25% 70% 84% 80% 75% 30%

Population Number of Households Household income Out-of-Home Adspend

Bangkok & Vicinities Upcountry Up-country advertising market is still underserved when comparing to the penetration relative to population, households and household income.

• VGI is now in the process to increase our stake in Aero Media
• VGI invested 20% in Aero Media since 2014 with an option to

increase our stake up to 30%.

• Dominant position by covering 13 leading airports, including

Suvanabhumi and Don Mueng airport, in Thailand

• Potential expansion in new media projects with new capital

injected by VGI

• Solid relationship in aviation industry

IN THE PROCESS TO INCREASE STAKE IN AERO MEDIA UP TO 30%

AERO MEDIA GROUP STRUCTURE At Peak

• 57 jet bridges

in 5 AOT airports

• Buggy service

cart wrap in Suvarnabhumi Airport Prime World Solution

• Official

AOT/airport websites management Media Genius

• Sale agent for

advertising media 100% 100% 100% AERO MEDIA 342 LEDs in 13 Airports

SLIDE 19

prepared by Investor Relations department BTS Group Holdings PCL

Residential THB 0.3bn

3% 32% 29% 36%

Bayswater JV THB 3.9bn

PROPERTY UPDATE

PROPERTY BOOK VALUE BREAKDOWN COMMERCIAL PROPERTY COMMERCIAL PROPERTY REVENUE BREAKDOWN

HOTEL REVPAR AND OCCUPANCY

19

HISTORICAL HOTEL OCCUPANCY

Others 28% U-Hotels 38% Thana City Golf 34% Commercial THB 3.4bn

1Q 2016/17 earnings presentation Section 2: Business Updates

1Q 2016/17 Commercial Property Revenue:

THB 132mn

68.8% 78.7% 75.9% 78.3% 74.4% 80.5% 81.8% 82.9% 76.3% 1Q 14/15 2Q 14/15 3Q 14/15 4Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2,544 1,204 1,940 1,976 83.6% 67.4% 75.5% 76.3% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

• 500

1,000 1,500 2,000 2,500 3,000 U Chiang Mai U Inchantree U Sathorn Blended

RevPar (THB per night) Occupancy Rate

Land bank THB 3.1bn Total Book Value as of 30 Jun 16:

THB 10.7bn

* Excludes net investment of THB 444.0mn in BTS-SIRI JV and THB 7,367.0mn in U City

SLIDE 20

prepared by Investor Relations department BTS Group Holdings PCL

PROPERTY UPDATE

BTS-Sansiri Projects Launched: The Line Asoke - Ratchada

Distance from mass transit station 300m from MRT Rama 9 Project value THB 3.0bn

• No. of units

473 (38 floors)

• Avg. selling price per

sqm THB 175k; fully furnished Foreign participation 36% Land Area (Rai) 2-0-200

20

• Intl. Roadshow / Domestic Presales

Construction Starts Construction Completion Transfer Starts Transfer Completion Jun 2016 Nov 2016 Aug 2019 Sep 2019 Mar 2020

1Q 2016/17 earnings presentation Section 2: Business Updates

EXPECTED TIMELINE THE LINE ASOKE - RATCHADA

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PROPERTY UPDATE

BTS-Sansiri Projects Launched

Project Name THE LINE Jatujak - Mochit THE LINE Sukhumvit 71 THE LINE Ratchathewi THE LINE Asoke - Ratchada Distance from mass transit station 300m from BTS Mo Chit 400m from BTS Prakanong 220m from BTS Ratchathewi 300m from MRT Rama 9 Project value THB 5.7bn THB 2.0bn THB 2.9bn THB 3.0bn

• No. of units

841 (43 floors) 291 (28 floors) 231 (38 floors) 473 (38 floors)

• Avg. selling price per sqm

THB 179k THB 169k; fully furnished THB 266k THB 175k; fully furnished Land Area (Rai) 4-2-95.7 1-3-54.4 1-2-12 2-0-200

• Intl. Roadshow / Domestic Presales

Construction Starts Construction Completion

Aug 2015 May 2015 Nov 2016 Dec 2016 Mar 2017

Transfer Starts Transfer Completion

Oct 2015 Jan 2016 Aug 2018 Sep 2018 Mar 2019 May 2015 Mar 2015 Dec 2017 Jan 2018 Sep 2018

21

• Target project value of THB 100bn to be developed over 5 years under BTS-SIRI partnership
• Approximately THB 11bn in project value launched and fully presold in 2015
• Expected equity IRR ≈ 17% and NPAT margin ≈ 12%

2016 Guidance: expected 6 projects launched with value of THB 23bn

1Q 2016/17 earnings presentation Section 2: Business Updates

Jun 2016 Nov 2016 Aug 2019 Sep 2019 Mar 2020

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prepared by Investor Relations department BTS Group Holdings PCL

PROPERTY UPDATE

U City Phayathai Project to be launched

22 1Q 2016/17 earnings presentation Section 2: Business Updates

HOTEL 14 FLOORS

• NFA. 14,111 SQ.M

397 KEYS SERVICED APARTMENTS 15 FLOORS

• NFA. 7,532 SQ.M

118 UNITS

GRAND BALLROOM PARKING 906 CARS

LOBBY RESTAURANT CHEF MAN FITNESS MEETING ROOM ALL DAY DINNING FUNCTION ROOM HOTEL FACILITIES

• NFA. OTHER

852 SQ.M

• NFA. OTHER

470 SQ.M

LOUNGE OUTDOOR WEDDING AREA

OFFICE 12 FLOORS

• NFA. 22,452 SQ.M

RETAIL NFA. 7,096 SQ.M DETAILS AREA (SQ.M) REMARK LAND AREA 10,526 6-2-31.45 Rai

TOTAL GFA 120,400 TOTAL NFA 52,513 EFFICIENCY (%) 43.6%

• NFA. SERVICED APARTMENTS

7,532 14.3% of NFA

• NFA. HOTEL

14,111 26.9% of NFA

• NFA. OFFICES

22,452 42.8% of NFA

• NFA. OTHER (MAINLY RETAIL)

8,418 16.0% of NFA CAR PARK 906

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Agenda

Section

1

BTSG 1Q 2016/17 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

23 1Q 2016/17 earnings presentation

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Breakdown of Share of Income /(Loss) from Investments

in JVs and Associates (1Q 2016/17)

24 1Q 2016/17 earnings presentation Appendix: Breakdown of Share of Income (Loss) from Investments and JVs

per Financial Statements THB mn Share of loss from investments in JVs (94.3) Share of loss from investments in associates 193.9 Total 99.6 Share on Investments in Associates THB mn Absolute Hotel Services (AHS) 0.8 BTSGIF 221.2 MACO and Aero Media 3.0 U CITY (31.8) MACO’s associates 0.6 Total 193.9 Share on Investments in Joint Ventures THB mn ATS (AEON-Rabbit) 4.9 Bayswater (33.1) BTS-SIRI JV projects (59.9) Rabbit LINE Pay (6.3) Total (94.3)

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prepared by Investor Relations department BTS Group Holdings PCL

LINE ROUTE AUTHORISING BODY TARGETED OPERATE YEAR CONSTRUCTION PROGRESS DISTANCE (KM)

BLUE HUA LAMPHONG - BANG KHAE MRTA 2019 UNDER CONSTRUCTION 14.0 BLUE BANG SUE - THA PRA MRTA 2019 UNDER CONSTRUCTION 13.0 DARK RED BANG SUE - RANGSIT SRT 2019 UNDER CONSTRUCTION 26.3 DARK GREEN SOUTH BEARING - SAMUT PRAKARN MRTA 2018 UNDER CONSTRUCTION 12.8 DARK GREEN NORTH MO CHIT – SAPHAN MAI – KHU KHOT MRTA 2019 UNDER CONSTRUCTION 18.4 LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0 LRT BANG NA - SUVARNABHUMI BMA 2019 18.3 GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2019 16.3 PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 – 2021 36.0 DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2020 – 2021 7.0 YELLOW LAD PRAO – SAM RONG MRTA 2020 – 2021 30.4 ORANGE TALING CHAN – MIN BURI MRTA 2020 39.8 LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2021 9.0 LIGHT RED MAKKASAN – HUA MARK SRT 2021 10.0 DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2019 10.0 DARK RED BANG SUE - HUA LAMPHONG SRT 2021 6.5

TOTAL (KM) 274.8

274.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 84.5KM UNDER CONSTRUCTION

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

108.8km

BTS Group: Potential DEVELOPER of Mass Transit Extensions

Focused on 6 lines; total length of 108.8km

1Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines 25

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)

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BTS Group: Potential DEVELOPER of Mass Transit extensions

BTSG well-positioned for new contracts

1Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines 26

PINK LINE

• Khae Rai – Min Buri (36.0km)
• Expected turnkey bidding: 2016
• Target operation: 2020 – 2021

DARK GREEN NORTH LINE

• Mo Chit – Saphan Mai – Khu Khot (18.4km)
• Civil works on progress
• Expected O&M award: 2016
• Target operation: Mid 2019

GREY LINE

• Watcharaphol– Rama 9 Bridge (26.0km)
• Awaiting EIA approval
• Expected bidding (Phase I): late 2016
• Target operation (Phase I): 2019

Phase I: Watcharaphol – Thong Lo (16.3km)

LIGHT RAIL TRANSIT (LRT)

• Bang Na – Suvarnabhumi (18.3km)
• Expected bidding: 2016
• Target operation: 2019

DARK GREEN SOUTH LINE

• Bearing – Samut Prakarn (12.8km)
• Civil works on progress
• Expected O&M award: 2016
• Target operation: Dec 2018

Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport

LIGHT GREEN LINE

• Bang Wa – Borommaratchachonnani(7.0km)
• Expected O&M award: 2017
• Target operation: 2019

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prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Procurement of 184 carriages - Thailand’s Largest Train Order

27

• On 23 May 2016, BTSC signed the contract with Siemens Consortium (“Siemens”) and CRRC Changchun Railway Vehicles Co., Ltd.

(“CRRC”) to procure additional trains. Total of EURO 270mn (before VAT)

• 46 additional 4-car trains, totaling of 184 carriages to serve the increased patronage in existing network, together with green line

south and north extensions

1Q 2016/17 earnings presentation Appendix: Procurement of 184 carriages

Rolling stocks From Delivery Schedule 22x4 trains

• 7x4 trains for existing network
• 15x4 trains for green line south extension

Siemens by 2018/19 24x4 trains

• 21x4 trains for green line north extension
• 3x4 trains – spare trains for extensions

CRRC by 2019/20

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prepared by Investor Relations department BTS Group Holdings PCL

Bayswater Transaction

Transaction Summary

• Bayswater (50:50 affiliated company of BTS and

GLAND), won the auction for a land plot at Phaholyothin Road.

• This project is excluded from the strategic alliance

framework with SIRI.

Land Price THB 7,350mn Ownership Freehold Area 48 – 2 – 96.8 Rai (77,987.2sqm) BTS Proximity 200m from N10, future Green Line North station

Land Details

28 1Q 2016/17 earnings presentation Appendix: Bayswater Transaction

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Rabbit LINE Pay Transaction

Transaction Summary

29

Rabbit Pay subscribed 2mn new shares for 50% shareholding in Line Biz Plus number of shares 1,999,999 shares price THB 375 per share total investment THB 750mn (THB 600mn by BSSH & THB150mn by Kerry Logistic)

TRANSACTION SUMMARY TIMELINE OF RABBIT LINE PAY STRUCTURE BSS Holdings Kerry Logistic

80% 20%

LINE Line Biz Plus

50% 50%

Rabbit Pay RATIONALE

• Established Thailand 1st Integrated online & offline payment platform
• Revitalising the e-payment platform anticipation of cashless society
• Expand “Rabbit” brand and services to nationwide
• A critical part of supporting VGI’s strategy of “Nationwide Integrated

Media Platform”

SYNERGIES WITH VGI

• Big data based services
• 2nd step to nationwide integrated media platform
• Targeted marketing and Digital Advertising
• Improve VGI’s occupancy by bundling online and data
• VGI & Rabbit, a leading offline and online media platform

25 APR 2016: Injected THB 750mn & signed BSS’s acquiring agreement APR 2016: Complete Kerry Integration AUG 2016: Rebranding Line Pay to be “Rabbit Line Pay” 1Q 2017: Full merchant upgrade to support QR payment 3Q 2016: Pilot QR payment at merchants 4Q 2016: Pilot Campaign

1Q 2016/17 earnings presentation Appendix: Rabbit LINE Pay Transaction

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prepared by Investor Relations department BTS Group Holdings PCL

FY 2016/17 BTS Group Targets and CAPEX

30

Rolling stocks

4,100 200 1,000 180 300 500 1,200

Mass Transit Media Property Services BTS Group

Thana City renovation

• 5-6% Ridership Growth
• 1% Average Fare Increase
• 3-4% O&M Revenue Growth

BTS GROUP CAPEX/ FINANCING (THB mn)

FY 2016/17 TOTAL CAPEX** THB 7.6BN

*assumes consolidates MACO from Jun 2016 onwards **excludes real estate development cost for Property business

2016/17 BTSGIF CAPEX is expected to be approx. THB 490mn (not included in BTS Group CAPEX)

BTS GROUP TARGETS

MASS TRANSIT MEDIA*

• 50% Revenue Growth

PROPERTY

• THB 620mn Commercial Property Revenue
• THB 60mn Residential Property Revenue
• THB (100)mn Share of Net Loss from BTS-SIRI JVs

SERVICES

• 6.5mn Rabbit Cards in circulation
• Reach to 2,000 retail shops with 4,500 readers
• 3mn Rabbit Rewards Membership

4,280 500

Outdoor Invest in BTS-SIRI JVs Land acquisition & others

10 110 2,700

1Q 2016/17 earnings presentation Appendix: FY 2016/17 BTS Group Targets and CAPEX

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BTS Group Update

Dividend

31 1Q 2016/17 earnings presentation Appendix: Dividend Summary

DIVIDEND PAYMENT HISTORY DIVIDEND POLICY FY 2016/17 AND BEYONDS

• Dividend policy: reverts to “no less than 50% of the net income after tax in accordance with the Company's financial

statements (on a standalone basis)”.

• Aim to pay a dividend that is competitive with the constituent companies of the SET50 Index

2,015.1 2,747.6 4,359.0 7,072.8 7,093.8 8,048.0 41.6% 79.8% 79.7% 35.0% 200.7% 122.8% 5.19% 6.55% 4.79% 7.34% 6.21% 7.75%

• 950 .0%
• 750 .0%
• 550 .0%
• 350 .0%
• 150 .0%

50.0% 250.0%

• 1,000.0

2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Dividend (THB mn) Payout ratio (%) Dividend Yield (%)

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32 1Q 2016/17 earnings presentation

Q&As