BTS GROUP HOLDINGS PCL 1Q 2018/19 EARNINGS PRESENTATION 16 AUGUST - - PowerPoint PPT Presentation

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BTS GROUP HOLDINGS PCL 1Q 2018/19 EARNINGS PRESENTATION 16 AUGUST 2018 prepared by Investor Relations department BTS Group Holdings PCL Disclaimer Investment involves risk. Prospective should understand the characteristics of Securities and


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SLIDE 1

prepared by Investor Relations department BTS Group Holdings PCL

16 AUGUST 2018

BTS GROUP HOLDINGS PCL

1Q 2018/19 EARNINGS PRESENTATION

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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

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SLIDE 3

Agenda

Section

1

BTSG 1Q 2018/19 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2018/19 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

BTS Group Earnings Presentation 3

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prepared by Investor Relations department BTS Group Holdings PCL

1Q 2018/19 Highlights

  • Operating EBITDA was THB 1,128mn, rose by THB 212mn or 23.1% YoY
  • Reported net profit (before MI) was THB 495mn, increasing by 13.1% YoY

mainly from higher recurring gross profit, yet partially offset with higher SG&A expenses and finance cost

  • Reported net profit (after MI) was THB 387mn, dropped by 4.4% YoY
  • Recurring net profit (after MI) of THB 472mn, an increase of 20.4% YoY
  • Balance sheet strength: THB 30.8bn cash & liquid investments* & cash to be

received from clearing house - share subscription of subsidiary

  • Low leverage: Adjusted net D/E at 0.39x

*Cash and liquid investments include cash bal. of THB 4.7bn, current investments of THB 5.5bn, L/T investments of THB 15.4bn

Investment phase; including;

  • CFO: Investment in E&M works and train procurement for Southern and

Northern Green line extensions of THB 1.5bn and an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn

  • CFI: Cash paid to exercise VGI-W1 of THB 5.4bn
  • CFF: Net cash received from bank loans (via BE and PN) of THB 2.2bn

4

PROFITABILITY BALANCE SHEET CASH FLOW

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance 18 Jun: BTSG bought TOR of a High Speed Rail project 29 Jun

  • Notice-to-Proceed (NTP) for Pink & Yellow lines was issued

for construction kick-off

  • VGI received proceeds from the exercise of VGI-W1 of THB

7.1bn1. Of this, BTSG and BTSC exercised its rights totaling THB 5.4bn. 5 Jul: VGI AGM approved the investment in Kerry Express Thailand, total purchase price of THB 5.9bn

WHAT’S NEW IN 1Q 2018/19

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) 5 Aug: The first in a series of 22x4-carriage trains (1 train) from Siemens was successfully delivered

1 Subsequently, on 1 August 2018 (VGI-W1 final exercise date),

VGI received additional cash of THB 1.4bn, making total proceeds from the exercises of VGI-W1 of THB 8.6bn, or 72%

  • f maximum proceeds
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prepared by Investor Relations department BTS Group Holdings PCL

Facts and Figures

5 BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

KEY HIGHLIGHTS

OPERATING REVENUE

2% YoY

OPERATING EBITDA

 23% YoY

RECURRING NET PROFIT (AFTER MI)

 20% YoY

THB 3,049mn Operating Revenue

Chiefly from (i) Mass Transit: THB 1,813mn (-9% YoY) (ii) Media: THB 1,077mn (+27% YoY)

THB 1,128mn Operating EBITDA

Increased by THB 212mn or 23% YoY

37% Operating EBITDA Margin THB 472mn Recurring Net Profit (after MI)

rose 20% YoY, largely as a result of (i) Higher recurring gross profit (ii) An increase in share of net profit from associates/JVs

3,110 2,543 4,875 3,574 3,049 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 917 875 1,144 1,154 1,128 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 392 375 938 810 472 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

(THB mn)

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prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

INCOME STATEMENT (THB mn) 1Q 2018/19 1Q 2017/18 % YoY 4Q 2017/18 % QoQ Operating Revenues1 3,049 3,110 (2)% 3,574 (15)% Gross operating profits 1,470 1,278 15% 1,652 (11)% Operating EBITDA2 1,128 917 23% 1,154 (2)% Recurring net profit – after MI 472 392 20% 810 (42)% Accounting EBITDA 1,114 1,087 (2)% 3,367 (64)% Net income (loss)3 387 405 (4)% 2,470 (84)% Gross operating profit margin (%) 48.2% 41.1% 46.2% Accounting EBITDA margin (%) 33.5% 32.7% 56.0% Recurring net profit margin (%) 15.2% 12.0% 19.6% Operating EBITDA margin (%) 37.0% 29.5% 32.3%

P&L SNAPSHOT

59% Mass Transit 35% Media 3% Property 3% Services

1Q 2018/19 OPERATING REVENUE BREAKDOWN

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

6 BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

1Q 2018/19 Overview

3,110 3,049 (180) 228 (43) Q1 FY17/18 Mass Transit Media Property Services Q1 FY18/19

(45)% (35)% 27% (9%) (THB mn)

(66)

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prepared by Investor Relations department BTS Group Holdings PCL

CFO

  • Profit before tax of THB 606mn, deducted

by

  • Non-cash reconciling items of THB 187mn
  • Changes in net working capital of THB 2bn

(this includes THB 1.5bn Green Line extensions E&M works and train procurement an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn)

9,458 (2,110)* (5,703) 2,896 4,574** 33 Beginning cash (31/3/18) CFO CFI CFF Others Ending cash (30/6/18)

* After corporate income tax of THB 56mn, interest expenses of THB 448mn and investment in E&M works and train procurement for the Southern and Northern Green Line extensions of THB 1.5bn and an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn ** Excluding liquid investments and cash to be received from clearing house - share subscription of subsidiary of THB 26.1bn

CFI

  • Cash paid to exercise VGI-W1 of THB 5.4bn
  • Cash paid for acquisitions of current and other

long-term investments of THB 748mn

  • Cash paid for purchases of property, plant and

equipment of THB 138mn

  • Dividend Income of THB 437mn and Interest

income of THB 209mn

CFF

  • Net cash received from bank loans of THB 2.2bn
  • Net cash received mainly from sale of VGI of THB

665mn

1Q 2018/19 Cash Flow Snapshot

(THB mn)

7 BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

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prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

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

procurement service for the Southern and Northern Green Line extensions of THB 0.9bn was recorded

  • O&M revenue rose by 4% YoY to THB 452mn mainly from the

existing extensions and one new additional station (Samrong: E15)

  • Despite the impact of free-trip allowance to passengers from train

services disruption, Farebox revenue up 1% YoY to THB 1,640mn on the back of 2.7% YoY average fare increase

  • Share of net profit in BTSGIF of THB 227mn (increased 4% YoY)
  • Costs declined by THB 218mn YoY to THB 1.1bn largely from lower

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

  • Operating EBITDA margin was 38.7% (33.3% in 1Q 2017/18)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn) 1Q 2018/19 1Q 2017/18 %YoY 4Q 2017/18 %QoQ Revenue 1,813 1,993 (9)% 2,159 (16)% Costs of revenue 1,120 1,338 (16)% 1,389 (19)% Gross profit 694 655 6% 770 (10)% Operating EBITDA 702 664 6% 779 (10)% Gross margin (%) 38.3% 32.9% 35.7% Operating EBITDA margin (%) 38.7% 33.3% 36.1%

OPERATING REVENUE BREAKDOWN

25% O&M Services revenue from provision of E&M works & train procurement 51%

1Q 2018/19

Int income from train procurement & E&M 11% 8

Mass Transit

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

417 411 411 422 473 472 452 468 452 33 32 32 90 78 82 109 234 193 221 199 284 241 218 247 233 252 227 1,444 1,224 519 2,848 1,205 926

14

1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 Farebox BRT Services revenue from provision of E&M works & train procurement Share of NP in BTSGIF Int income from train procurement & E&M O&M

12% Share in BTSGIF 1% Farebox BRT

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prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

  • Overall Media revenue surged 27% YoY to THB 1,077mn mainly

from improved performance in OOH Media

  • OOH Media revenue* rose by 37% YoY to THB 996mn chiefly

attributable to from synergies of O2O Solutions services, a higher utilisation rate, digital billboards products as well as the full quarter consolidation of Co-Mass in the Outdoor media segment

  • Costs increased by 5% YoY to THB 309mn primarily from costs

related to the launch of 35 digital billboards and full year consolidation of Co-Mass by MACO

  • Operating EBITDA margin improved YoY to 54.5% (49.6% in 1Q

2017/18) 58% BTS – Related Media 26% Outdoor Media MEDIA (THB mn) 1Q 2018/19 1Q 2017/18 %YoY 4Q 2017/18 %QoQ Operating revenue 1,077 849 27% 1,107 (3)% Costs of revenue 309 294 5% 321 (4)% Gross profit 768 555 38% 786 (2)% Operating EBITDA 587 421 39% 529 11% Gross margin (%) 71.3% 65.4% 71.0% Operating EBITDA margin (%) 54.5% 49.6% 47.8%

1Q 2018/19

OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN

9

Media

9% Office Buildings and Others 7% Digital

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

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

542 790 755 741 753 891 894 1,020 996 79 104 96 79 82 87 81

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

Digital Services Media OOH

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prepared by Investor Relations department BTS Group Holdings PCL

Residential 11%

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

  • Operating revenue was THB 80mn, 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 prior quarter

  • Commercial Property revenue was THB 71mn or 89% of Property

revenue, which now mainly comprises of revenue from Thana City Golf & Sports Club. The decrease of THB 70mn or 50% YoY was chiefly due to the deconsolidation of the 3 former BTS’ hotels following the EBT of UE to U City

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

THB 8mn (THB 59mn loss in 1Q 2017/18) mainly from the release of deferred gain according to transfer progress of Sansiri-JVs.

  • Operating costs dropped in tandem with the decline in operating

revenue, reducing by 28% YoY or THB 27mn to THB 68mn.

OPERATING PERFORMANCE

PROPERTY (THB mn) 1Q 2018/19 1Q 2017/18 %YoY 4Q 2017/18 %QoQ Operating Revenue 80 146 (45)% 160 (50)% Costs of revenue 68 95 (28)% 105 (36)% Gross profit 13 52 (76)% 54 (77)% Operating EBITDA 19 (6) N.A. (5) N.A. Gross margin (%) 15.6% 35.3% 34.1% Operating EBITDA margin (%) 23.0% N.A. N.A.

OPERATING REVENUE BREAKDOWN

1Q 2018/19

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

10

Property

89% Commercial & Others BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

142 142 147 186 146 159 174 160 80

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

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11

BTS Group Update

Share of Income / (Loss) from Investments in JV & Associates

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance (THB mn) 1Q 2018/19 1Q 2017/18* Share of income/ (loss) from investments in joint ventures (90) (183) Bayswater (64) (52) Rabbit Line Pay (24) (20) Chefman (13)

  • SPV AEON-Rabbit

9 2 Media’s JV 2

  • Sansiri JV
  • (113)

Share of income/ (loss) from investments in associates 202 169 BTSGIF 227 218 Media’s associates (17) 9 U City (8)** (59) AHS

  • 1

Total 111 (13)

1Q 2018/19 SHARE OF NET PROFIT/ (LOSS) BREAKDOWN BY BU

227 (30) (73) (13) 111

Mass Transit Media Property Services Total (THB mn)

*includes performances from discontinued operation **After Purchase Price Allocation (PPA) adjustment and deferred gain

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prepared by Investor Relations department BTS Group Holdings PCL

46,364 48,512 36,971 37,038 22,923 24,918

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

106,258 110,467 84,980 86,793 21,278 23,674

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

110,467 106,258 Cash 31 Mar 18: THB 9.46bn 30 Jun 18: THB 4.57bn Current Investments 31 Mar 18: THB 5.67bn 30 Jun 18: THB 5.46bn Long-Term Investments 31 Mar 18: THB 15.95bn 30 Jun 18: THB 16.58bn Gross Debt 31 Mar 18: THB 47.17bn 30 Jun 18: THB 49.48bn Adjusted Net Debt* 31 Mar 18: THB 17.13bn 30 Jun 18: THB 18.69bn ***** Issued Ordinary Shares 31 Mar 18: 11,940.4mn 30 Jun 18: 11,845.2mn

80% 20% 21% 79% 23% 44% 33% 44% 21% 35% 1Q 2018/19: 1.02x 1Q 2017/18: 0.92x

Gross Debt to Equity

1Q 2018/19: 0.39x 1Q 2017/18: 0.10x

Adjusted Net Debt* to Equity

1Q 2018/19: 4.35x 1Q 2017/18: 1.43x

Adjusted Net Debt* to Recurring Operating EBITDA

1Q 2018/19: 3.58x 1Q 2017/18: 3.12x

Interest Coverage

1Q 2018/19: 0.95x 1Q 2017/18: 1.39x

Current Ratio

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

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Financial Position

*Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment - Cash to be received from clearing house - share subscription of subsidiary

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

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Agenda

Section

1

BTSG 1Q 2018/19 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2018/19 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

13 BTS Group Earnings Presentation

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prepared by Investor Relations department BTS Group Holdings PCL

1Q 2018/19

  • Ridership = 57.1mn trips, -1.5% YoY, -5.0% QoQ
  • Average fare = THB 29.0* per trip, +3.9% YoY, +0.8% QoQ
  • Average weekday ridership = 719,756 trip, -1.2% YoY

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

14

Mass Transit Update

Core Network Ridership

BTS Group Earnings Presentation Section 2: Business Update

Explanation

  • Ridership: YoY and QoQ decreased mainly from train services

disruption during 25-27 Jun 2018. Additionally, a QoQ decrease from lower number of weekdays from several holidays in this quarter (seasonal impact).

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

rose from adjustment of promotional price for stored-valued card since Apr 2018

58.0 62.2 60.8 60.2 57.1 2.8% 0.8% 1.7% 0.2%

  • 1.5%
  • 3.4%

7.1%

  • 2.2%
  • 1.0%
  • 5.0%
  • 50.0%
0.0% 53.0 58.0 63.0

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

27.9 27.8 28.7 28.8 29.0* 0.3%

  • 0.6%

3.2% 0.4% 0.8%

  • 0.6%
  • 0.2%

3.2% 3.3% 3.9%

1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19 Average Fare (THB/trip) Average Fare Growth (% QoQ) Average Fare Growth (% YoY) * Excluding the impact of free-trip allowance to passengers from train services disruption

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15 BTS Group Earnings Presentation Section 2: Business Update

Mass Transit Update

Progress of BTS Secured Lines

Source: MRTA, the Company

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

1 station opened: Samrong (Apr 2017) Targeted full Operation (Dec 2018) Targeted 1st station: Ladprao (Mid 2019) Targeted full Operation (Jul 2020) Contract Signed

FY 21/22

Targeted

  • peration

(Oct 2021) Targeted

  • peration

(Oct 2021) Contract Signed Construction Period Construction Period Construction Period NTP issued 29 Jun 18 NTP issued 29 Jun 18 GOLD LINE PHASE 1 (Krung Thon Buri – Klong San) 1.7km/ 3 stations Targeted Full operation (Sep 2020) O&M contract Signed (31 Jul 18) Construction Period

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16

Mass Transit Update

First Batch of new Trains from Siemens Delivered in Aug 2018

BTS Group Earnings Presentation Section 2: Business Update

In order to accommodate the increase in passengers in existing Green Line network as well as in the Southern Green Line extension which its full operation is targeted to begin commencement in December 2018

  • First batch (1x4-carriage train) of total 22x4 car trains from Siemens arrived on 5 August 2018
  • Minimum of 7x4-carriage trains from Siemens are targeted to arrive and ready for operation services by early December 2018
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17

Mass Transit Update

Start of Pink and Yellow Lines Construction since 29 Jun 2018

BTS Group Earnings Presentation Section 2: Business Update

  • Following the successfully signed contract for the Pink and Yellow Line in June 2017, the Notice-to-Proceed (NTP) for the Pink and

Yellow Line was issued on 29 June 2018, marking the start of a 39-month construction period to completion.

  • The operation of these two lines are expected to begin in October 2021.

Sources: https://www.facebook.com/CRSTECONPINKLINE/

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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

18

Source: http://www.raillynews.com

BTS Group Earnings Presentation Section 2: Business Update

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

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19

Mass Transit Update

High Speed Rail – Project at a Glance

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

Makkasan Area Land Development

Don Mueang Bang Sue Phayathai Makkasan Suvarnabhumi Chachoeng- sao Chon Buri Si Racha Pattaya U-Tapao

2 1 3 4

Transit Oriented Development

5

High Speed Rail Station Existing Maintenance Depot New Maintenance Depot Source: High Speed Rail’s Market Sounding

Route Don Mueang – Suvarnabhumi – U-Tapao Distance 220km

  • No. of Stations

15 Stations Maximum Design Speed

  • Suvarnabhumi - U-Tapao:

280 km/hr

  • Don Mueang -

Suvarnabhumi: same as current system Maximum Operation Speed

  • Suvarnabhumi - U-Tapao:

250 km/hr

  • Don Mueang -

Suvarnabhumi:160 km/hr Contract Type PPP Net Cost with subsidy Expected Project Cost THB 221bn Expected Operation Year 2024 Contract Length 50 Years

Design & Construction Operation 5 years 45 years

BTS Group Earnings Presentation Section 2: Business Update

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20

Mass Transit Update

HSR’s Bid Winner is Targeted to be Announced by End of 2018

BTS Group Earnings Presentation Section 2: Business Update

18 Jun-9 Jul 2018 12 Nov 2018 13 Nov 2018 End 2018 Terms of Reference (TOR) selling period Bid Submission Announce the bid winner Open bidding documents companies bought High Speed Rail TOR

31

7 companies 4 companies 1 company 14 companies 2 companies 2 companies 1 company List of 14 Thai companies

  • 1. BTS Group Holdings PCL.
  • 2. Sino-Thai Engineering and

Construction PCL.

  • 3. Ratchaburi Electricity Generating

Holding PCL.

  • 4. Charoen Pokphand Holding Co., Ltd.
  • 5. Italian-Thai Development PCL.
  • 6. Unique Engineering and

Construction PCL.

  • 7. Energy Complex Co., Ltd.
  • 8. Bangkok Expressway and Metro PCL.
  • 9. Ch. Karnchang PCL.
  • 10. TPI Polene PCL.
  • 11. Terd Dumri Co., Ltd.
  • 12. Powerline Engineering PCL.
  • 13. Central Pattana PCL.
  • 14. LMT Stone Co., Ltd.
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21 BTS Group Earnings Presentation Section 2: Business Update

Media Update

An acquisition of Kerry Express (Thailand)

SERVICE CHANNEL B2B delivering parcels from company to various places such as financial institutions, law firm, retail shops and etc. B2C delivering parcels from e-market place to the individual shoppers C2C delivering letters and parcels from online retailers to individual consumers NETWORK AND CHANNEL

  • Deliver more than 800,000 parcels per day
  • 6,000 delivery vehicles
  • 700 distribution centers
  • >2,500 services points at alliance shops such as

POST VGI SHAREHOLDING STRUCTURE

TRANSACTION DETAILS

% of investment 23% of total shares Total investment THB 5,901mn Source of funds Cash from proceed from PP-1 and VGI-W1

KERRY BUSINESS

Kerry is the No. 1 private express delivery services in Thailand, with a network of more than 2,500 services points nationwide and more than 6,000 delivery vehicles.

Remark: VGI total shares = 8,556,680,098 shares, which based on shares after exercise of VGI-W1 and subscription of PP by Kerry.

1 BTS includes 45.0% of BTSC, 23.1% of BTSG and 0.6% from Kanjanapas Family 2 Kerry Express includes 1.3% of KLN Logistics, 0.1% of Siam Chao Phraya Express and

Gather Excellence

BTS Public VGI KERRY Express (Thailand) 68.7%1 29.9% 1.4%2

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SLIDE 22

prepared by Investor Relations department BTS Group Holdings PCL

22 BTS Group Earnings Presentation Section 2: Business Update

Media Update

TRANSIT MEDIA Station Sponsorship Campaign

  • AIS at Siam
  • Shopee at Phrom Phong and Victory Monument
  • Line Mobile at Mo Chit and Sala Daeng
  • Krung Thai at Ploen Chit
  • AEON brand at Asok
  • McDonald’s at National Stadium
  • Netflix at Thong Lo
  • Werk Co-working Space at Ratchadamri

OFFICE MEDIA

  • Total 175 office buildings (1,350 digital screens)

OUT-OF-HOME MEDIA DIGITAL SERVICES

OFFLINE PAYMENT

  • 9.3mn cardholders
  • 6,400 retail points
  • 177 brand partners

ONLINE PAYMENT

  • 3.4mn Rabbit LinePay members
  • 991 merchants

MICRO LOAN SERVICES

  • THB 1,380mn
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SLIDE 23

prepared by Investor Relations department BTS Group Holdings PCL

(162) (254) (8) 1,643 148 (611) (768) (458) (172) (25) (11) 233

2Q 2017 Net Loss Operating Revenue Other Revenue Operating Cost SG&A Finance Cost

  • Depr. &

Amort. Share of Profit Income Tax 2Q 2018 Net Loss Deferred Gain & Adjustment 1Q 2017/18 Share of Loss U City 23 BTS Group Earnings Presentation Section 2: Business Update

Property Update

U City Performance and Share of net Loss from U City Breakdown

FX Loss Vienna House Loans THB 221mn Vienna House Operating Expenses THB 438mn Vienna House SG&A THB 518mn

  • Release of Deferred Gain

THB 107mn (1Q 2018/19)

  • One-time adjustment of PPA

Vienna House THB 125mn (for 2Q 2017 -1Q 2018)

(38.9% stake) 1Q 2018/19 (THB mn)

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SLIDE 24

Agenda

Section

1

BTSG 1Q 2018/19 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 2018/19 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

24 BTS Group Earnings Presentation

slide-25
SLIDE 25

prepared by Investor Relations department BTS Group Holdings PCL

25

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 open bid/ award Construction Period Construction Period Construction Period Construction Period Construction Period

BTS Group Earnings Presentation Appendix

slide-26
SLIDE 26

prepared by Investor Relations department BTS Group Holdings PCL

26

Mass Transit Update

BTS Services Disruption on 25-27 June 2018

Replaced “Motorola” radio receiver by “Moxa” 1. Moved our signaling system to new frequency channel bandwidth 2480-2495 MHz 2. Installed the band-pass filter 3.

Service Delays

due to external radio interference PROBLEM SOLUTIONS 2.4 MHz 2.5 MHz MOTOROLA MOXA 2.48 MHz SkyPurse1 BTS MEASURE DURING 25-27 JUN 18

(Adult, Student and Senior)

Monthly Pass2 3 Free-trips3 6 Free-trips3 MEASURE

1cards used during 25-27 Jun 2018 2monthly cards which comprise of remaining trips during the services delay (25-27 Jun 2018)

7-31 Jul 2018 7-31 Jul 2018 CLAIMABLE PERIOD CARD TYPE

3additional trips must be used within 45 days from date of issue and will be valid for 30 days from the first-use date

BANDWIDTH

completed by 30 Jun

SJT Cash refund or retain within 14 days 7-31 Jul 2018

completed by 30 Jun completed by 5 Jul (Adult and Student) BTS Group Earnings Presentation Appendix

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SLIDE 27

prepared by Investor Relations department BTS Group Holdings PCL

27

MEDIA

2018/19 BTS Group Targets and CAPEX

FY 2018/19 BTS GROUP TARGETS

THB 4.4-4.6bn

Targeted Media Revenue

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 Earnings Presentation Appendix

slide-28
SLIDE 28

prepared by Investor Relations department BTS Group Holdings PCL

BTS-W4 Term Sheet

28 BTS Group Earnings Presentation Appendix

TICKER BTS-W4 TERMS 1 YEAR WARRANTS PRICE NIL

  • NO. OF WARRANTS

SCENARIO 1: UP TO 1,755,034,187 UNITS* SCENARIO 2: UP TO 1,316,158,099 UNITS**

  • No. OF SHARE

SCENARIO 1: UP TO 1,755,034,187 UNITS* SCENARIO 2: UP TO 1,316,158,099 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 SCENARIO 1: THB 18,427,858,963.50* SCENARIO 2: THB 13,819,660,039.50** EXERCISE PERIOD QUARTERLY SET LISTING BOTH BTS-W4 AND THE NEW SHARES TO BE LISTED

WARRANTS TERMS AND CONDITIONS

*Assuming all BTS-W3, BTS-WB and BTS-WC are exercised **If only BTS-WB are exercised