BTS Group Holdings PCL 1Q 14/15 earnings presentation 14 August - - PowerPoint PPT Presentation

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Holdings PCL

1Q 14/15 earnings presentation

14 August 2014

1Q 14/15 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

• r a solicitation to sell or exchange any securities of BTS Group Holding 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.

2 1Q 14/15 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 1Q 14/15 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 14/15 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

3 1Q 14/15 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

IMPROVED PROFITABILITY

• Recurring net profit grew 22.6% YoY to THB 769.2mn
• Recurring net profit improvement: recurring net profit

margin rose to 33.7% (22.2% in 1Q 13/14)

• Although accounting net profit fell due to no repeat of

gain from BTSGIF transaction

1Q 14/15 Financial Highlights

BTS DAILY TRADED VALUE (LTM) (as of 7 Aug 2014) THB 521.7mn (USD 16.2mn) MEDIA BUSINESS PROFITABILITY REBOUND QoQ Net profit +33% QoQ

(against Thai adex spending increase of 7.5%)

NEW CORE REVENUE RECORD: AVERAGE FARE (increased +6.8% YoY) FAREBOX REVENUE (increased +8.9% YoY) BTS DIVIDEND YIELD (LTM)** 6.97% SET50 DIVIDEND YIELD (LTM) 3.09%

>>

4 1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

** Sum of the gross DPS that have gone ex-dividend over the past 12 months, divided by stock price as of 7 Aug 2014

COMMITTED MINIMUM DIVIDEND OF: THB 7BN IN FY 14/15 & THB 8BN IN FY 15/16

• THB 31.83bn excess cash and liquid investments*
• Leverage: Net debt / equity at 0.01x
• Announced share repurchase programme

BALANCE SHEET STRENGTH

* Excess cash and liquid investments exclude sinking fund and include cash balance

• f THB 7.48bn, current investments of THB 19.92bn, long term investments of THB

3.29bn and restricted deposits of THB 1.15bn

prepared by Investor Relations department BTS Group Holdings PCL

2,486 1,744 (70) (90) (630) 48 1Q 13/14 Mass transit Media Property Services 1Q 14/15

• 11%
• 11%

(THB mn)

• 66%

61%

OPERATING REVENUE COMPARISON (YoY)

1Q 14/15 Overview

Income Statement (THB mn) 1Q 14/15 1Q 13/14 % YoY 4Q 13/14 % QoQ Operating Revenues1 1,744 2,486 (29.9%) 1,713 1.8% Gross operating profits 974 1,248 (21.9%) 892 9.2% Operating EBITDA2 690 898 (23.2%) 567 21.6% Recurring net profit – before MI 769 627 22.7% 634 21.3% Accounting EBITDA3 1,220 14,671 (91.7%) 926 31.8% Net income (loss)4 650 10,808 (94.0%) 404 60.9% Gross operating profit margin (%) 55.9% 50.2% 52.1% EBITDA margin (%) 52.1% 89.0% 46.2% Recurring net profit margin (%) 33.7% 22.2% 29.8% Operating EBITDA margin (%) 39.5% 36.1% 33.1%

P&L SNAPSHOT

31% Mass Transit 43% Media 18% Property 7% Services

1Q 14/15 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 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

Loans from financial institutions 8,669 7,469* 354 (2,714) 1,159 Beginning cash (31/3/14) CFO CFI CFF Ending cash (30/6/14)

(THB mn)

3 Months Cash Flow Snapshot

* excluding BTSC sinking fund and THB 31.8bn liquid investments

6

Increase in VGI stake, MACO investment, Treasury investment

1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

46.4 49.4 50.3 51.1 50.3 53.5 53.9 57.1 51.3 24.5 25.1 25.0 24.7 25.3 26.5 26.8 27.0 27.0

1Q 12/13 2Q 12/13 3Q 12/13 4Q 12/13 1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15

Ridership (mn trips) Average fare (THB/trip)

82 238 270 291 258 270 271 322 283 344 367 379 379 956 1,088 1,076 1,177 1,135 1,238 1,259 1,263 1,273 1,417 1,443 1,544 1,387 1Q 11/12 2Q 11/12 3Q 11/12 4Q 11/12 1Q 12/13 2Q 12/13 3Q 12/13 4Q 12/13 1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15

O&M (THB mn) Farebox (THB mn)

Mass Transit (as if no BTSGIF)*

7

HISTORICAL OPERATING REVENUE

HISTORICAL AVG FARE AND RIDERSHIP

KEY FACTORS OPERATING PERFORMANCE

• Quarterly Ridership increased 2.0% YoY to 51.3mn trips
• Average Fare increased 6.8% YoY to THB 27.0 per trip
• Key growth factors: i) organic growth ii) the commencement of 4

stations of the Silom line (Bang Wa) extension and iii) new carriages into service (all 4-car trains across the network)

• O&M revenue rose by 33.8% YoY to THB 378.6mn mainly from

additional service income from the Silom line extension which

• pened on 5 December 2013
• Costs & SGA decreased 2.4% YoY to THB 983.6mn due to the decline

in i) payroll expenses and ii) selling & marketing expenses

• Operating EBITDA margin improved to 66.3% (59.6% in 1Q 13/14)

as revenue grew and costs and SG&A decreased

Mass transit (THB mn) 1Q 14/15 1Q 13/14 YoY 4Q 13/14 QoQ Revenue 1,766 1,556 13% 1,922 (8%) Fare-box revenue 1,387 1,273 9% 1,544 (10%) Other revenue 379 283 34% 379 0% Costs of revenue 883 877 1% 1,008 (12%) Gross profit 883 679 30% 914 (3%) Operating EBITDA 1,171 928 26% 1,230 (5%) Gross margin (%) 50.0% 43.7% 47.6% Operating EBITDA margin (%) 66.3% 59.6% 64.0% * Includes 100% of fare-box revenue and O&M

1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

467 523 503 465 637 725 749 683 844 847 798 632 754 1Q 11/12 2Q 11/12 3Q 11/12 4Q 11/12 1Q 12/13 2Q 12/13 3Q 12/13 4Q 12/13 1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15

5% Office Buildings & Others 38% Modern Trade 57% BTS - Related

Media

8

• Overall Media revenue rebounded 19.2% QoQ from i) effect of

seasonal low period in 4Q 13/14 and ii) improving economy

• BTS-related Media

Revenue increased 4.3% YoY to THB 427.9mn from i) increase in capacity from new products, ii) increase in rent for long-term contracts of merchandising space and iii) increase in occupancy of small rental shops on the stations.

• Modern Trade Media

Revenue decreased 26.4% YoY to THB 286.4mn from i) weakened consumer spending and ii) political disruptions

• Office Buildings and Other Media

Revenue decreased 10.4% YoY to THB 39.6mn, driven by i) consumption slowdown and ii) political instabilities

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

Media (THB mn) 1Q 14/15 1Q 13/14 YoY 4Q 13/14 QoQ Revenue 754 844 (11%) 632 19% Costs of revenue 310 399 (9%) 290 7% Gross profit 444 504 (12%) 342 30% Operating EBITDA 379 423 (11%) 271 40% Gross margin (%) 58.8% 59.8% 54.1% Operating EBITDA margin (%) 50.2% 50.2% 42.8%

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

1Q 14/15

1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

154 152 111 210 155 179 401 710 950 863 685 436 319

1,643 1,849 554

1Q 11/12 2Q 11/12 3Q 11/12 4Q 11/12 1Q 12/13 2Q 12/13 3Q 12/13 4Q 12/13 1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15

41% Residential Commercial & Others 59%

Property*

9

OPERATING REVENUE* BREAKDOWN OPERATING PERFORMANCE

Property* (THB mn) 1Q 14/15 1Q 13/14 YoY 4Q 13/14 QoQ Operating Revenue 319 950 (66%) 436 (27%) Costs of revenue 191 575 (67%) 255 (25%) Gross profit 129 375 (66%) 181 (29%) Operating EBITDA 39 230 (83%) 64 (39%) Gross margin (%) 40.3% 39.5% 41.5% Operating EBITDA margin (%) 12.3% 24.2% 14.7%

HISTORICAL OPERATING REVENUE* (THB mn)

KEY FACTORS

1Q 14/15

• Operating revenue dropped by 66% YoY to THB 319.4mn mainly

from Residential Property

• Residential property revenue decreased by 83% YoY to THB

132.4mn mainly from decline in sales of Abstracts Phahonyothin Park (42 units transferred this quarter vs 225 units in 1Q 13/14)

• Commercial property revenue fell 2.1% YoY to THB 184.7mn from

slowdown in tourism industry

• Operating costs and SGA decreased by 66.8% YoY or THB 384mn to

THB 190.6mn from costs and expenses related to transferred units

• f Abstracts Phahonyothin Park and costs and expenses related to

Eastin Grand Hotel

• Operating EBITDA margin contracted to 12.3% (24.2% in 1Q 13/14)

THB 1,643 Proceeds from sale of Kamala

* Transactions related to ChefMan Restaurants were reclassified from Property business to Services business in 4Q 13/14 and applied retrospectively since 2Q 12/13

THB 1,849 Proceeds from sale of Nana THB 554 Proceeds from sale of non-core land

1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL 33 33 36 1 6 24 45 46 78 104 109 108 126

1Q 11/12 2Q 11/12 3Q 11/12 4Q 11/12 1Q 12/13 2Q 12/13 3Q 12/13 4Q 12/13 1Q 13/14 2Q 13/14 3Q 13/14 4Q 13/14 1Q 14/15

HHT 1% rabbit 39% Carrot 8% 52% ChefMan

Services*

10

OPERATING REVENUE* BREAKDOWN OPERATING PERFORMANCE

Services* (THB mn) 1Q 14/15 1Q 13/14 YoY 4Q 13/14 QoQ Revenue 126 78 61% 108 16% Costs of revenue 61 41 48% 64 (6%) Gross profit 65 037 76% 44 48% Operating EBITDA 24 12 98% (11) N/A Gross margin (%) 51.9% 47.5% 40.8% Operating EBITDA margin (%) 19.3% 15.7% N/A

HISTORICAL OPERATING REVENUE* (THB mn)

KEY FACTORS

1Q 14/15

• Revenue

Revenue increased by THB 48mn YoY to THB 126mn from i) revenue from ChefMan Restaurants of THB 28mn and ii) the growth in royalty fee from the co-branded rabbit cards between the Company and business partner of THB 4mn

• Costs & SGA

Costs & SGA increased by 52.2% YoY to THB 123mn (cost THB 61mn and SG&A THB 62mn). Key items were mainly from staff costs, food & beverage cost at ChefMan Restaurants and depreciation expenses for hardware, software and machines.

* Transactions related to ChefMan Restaurants were reclassified from Property business to Services business in 4Q 13/14 and applied retrospectively since 2Q 12/13

1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

59,542.2 58,860.5 8,638.7 9,593.4 8,530.2 8,671.1 31-Mar-14 30-Jun-14 39,368.0 40,705.4 37,343.1 36,419.6 31-Mar-14 30-Jun-14

Balance Sheet

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

Non-current assets Current assets 51% 49% 47% 53% 76,711 77,125 Non-current liabilities Current liabilities Equity 10% 78% 12% 76,711 77,125 78% 11% 11%

1Q 14/15: 0.01x 1Q 13/14*: 0.05x

Net Debt to Equity Net Debt to Operating EBITDA

1Q 14/15: 0.12x 1Q 13/14*: 1.66x 1Q 14/15: 5.16x 1Q 13/14*: 5.07x

Interest Coverage

1Q 14/15: 4.20x 1Q 13/14*: 5.94x

Current Ratio

11 1Q 14/15 earnings presentation Section 1: BTSG 1Q 14/15 Financial Performance

* 1Q 13/14 ratios have not been restated to reflect the effects of TFRIC4 and TFRIC12

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 1Q 14/15 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 14/15 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

12 1Q 14/15 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

PROGRAM SIZE

• Up to 600mn shares (~5% Paid Up Capital)
• Or up to THB 6bn

PURCHASE PERIOD August 25, 2014 to February 24, 2015 PURCHASE PRICE Not more than 115% of the “average closing price” of 5 days prior to purchase LOCK UP ON SALE 6 months from the end of the PURCHASE PERIOD PERMITTED RESALE PERIOD Can commence after the lock up period Any shares remaining unsold 3 years after the end of the purchase period must be cancelled RESALE PRICE Not less than 85% of the “average closing price” of 5 days prior to sale date

Business Update

Share Repurchase / Treasury Stock (TS)

13

PROGRAM DETAILS

• More efficient use of Excess Liquidity
• BTSG retains confidence in future business prospects
• Enhance yield on surplus liquidity in the case of sale at higher price

RATIONALE

1Q 14/15 earnings presentation Section 2: Business Updates

prepared by Investor Relations department BTS Group Holdings PCL

JULY 2014 RIDERSHIP

Mass Transit Update

GREEN LINE EXTENSIONS NEW LIGHT GREEN LINE EXTENSION

• Jul 14 ridership = 18.14mn trips, +2.7% YoY, +4.9% MoM
• Jul 14 average fare = THB 26.70/trip, +0.6% YoY
• Avg Jul 14 weekday ridership = 647,297 trips, +2.9% YoY

14 1Q 14/15 earnings presentation Section 2: Business Updates

BEARING-SAMUT PRAKARN:

• Bidding for operating contract

expected end of 2014

• Expected operation date: late 2017

(per NCPO)

1

MO CHIT-SAPHAN MAI-KU KHOT:

• Bidding for operating contract

expected end of 2014

• Expected operation date: late 2018

to early 2019 (per NCPO)

2

1 2

Source: National Council for Peace and Order (NCPO) BANG WA BOROMMARATCHACHONNANI

BANG WA – BOROMMARATCHACHONNANI

• Total route length of 7km

(6 stations)

• Project under BMA authority
• In process of hiring

consultant for EIA and feasibility study

18.53 16.75 17.25 17.28 18.14

• 0.3%

4.1% 1.4% 0.7% 2.7%

• 1.0%
• 0.5%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Ridership (mn trips) % YoY ridership growth

prepared by Investor Relations department BTS Group Holdings PCL

SECOND TRANSACTION

Media Update

TH & Aqua Ad Transactions

FIRST TRANSACTION

15 1Q 14/15 earnings presentation Section 2: Business Updates

• Subject to relevant approvals, TH will issue 1,665mn new shares via a private placement and rights offering at THB 1.431 per share,

raising a total of THB 2,383mn

• VGI intends to subscribe to 640mn shares for a consideration of THB 916mn
• The only business of TH will be 19% of TH Newspaper as all other businesses will be disposed of before the transaction date

TH EXISTING SHAREHOLDERS

27.06% 4.23% 25.1% 8.73%

VGI AQUA KYAVATANAKIJ FAMILY

34.88%

OTHER PP SUBSCRIBERS TH Newspaper

19.00%

• TH will pay THB 830mn of proceeds to buy 74% of Aqua Ad from Aqua
• VGI will be appointed to manage advertising assets of Aqua Ad
• TH will have THB 2,285mn cash remaining post acquisition of Aqua Ad for further expansion

TH EXISTING SHAREHOLDERS

27.06% 4.23% 25.1% 8.73%

VGI AQUA KYAVATANAKIJ FAMILY

34.88%

OTHER PP SUBSCRIBERS TH Newspaper

19.00% 74.0%

AQUA AD

Management service agreement

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

TH & Aqua Ad Transactions

KEY BUSINESS OF THE TARGET

16 1Q 14/15 earnings presentation Section 2: Business Updates

RATIONALE

314 337 357 121

44% 51% 51% 40%

0% 20% 40% 60%

• 50

50 150 250 350 450 550

2011 2012 2013 5M' 2014 Revenue (THB mn) Gross Profit Margin

Aqua Ad’s Financial Performance (Pro Forma)

2011 2012 2013 Jun 2014 Billboard* 134 165 162 156 LED/LCD 128 128 128 128 Trolley in airport 1,271 1,171 140 140 39 33 18 11 95 132 144 145

2011 2012 2013 Jun '14 Rented Company's

Media Portfolio Owned vs Rented Billboards and Occupancy

• Expand VGI’s out of home media network
• No. of Billboards in
• ur Network*
• No. of Peers’ Billboards

in the Market* MACO 170 BNO  212 Aqua Ad 156 Hello Bangkok  200 Total 326 S.Thana  138 Co-Mass  109 Plan B  28 Total  687

• Increase market share of outdoor sub-segment following

Midas / MACO acquisitions

• Implement Sales and Cost synergies
• Use TH as acquisition vehicle for further expansion within

the outdoor sector

• Next step: VGI EGM on 19 September 2014

* Large size static media only

prepared by Investor Relations department BTS Group Holdings PCL

Others 15%

Property Update

RESIDENTIAL PROPERTY

1Q 14/15 Commercial Property Revenue:

THB 185mn

COMMERCIAL PROPERTY

Eastin Grand Sathorn 52% U-Hotels 8% Thana City Golf 25% Presold (as of 30 Jun 14): 89%

LOCATION: 250M FROM NEW BTS STATION SITE AREA: 33,420 SQM (20-3-55 RAI) LAND TENURE: FREEHOLD AVERAGE SALE PRICE: THB 76,400 PER SQM TDC: THB 2,527MN TRANSFERRED: 84% (as of 30 Jun 14)

ABSTRACTS PROJECT – PHAHONYOTHIN PARK

COMMERCIAL PROPERTY REVENUE BREAKDOWN

Opened: Oct 12 1Q 14/15 average occupancy rate: 62%

LOCATION: SATHORN, BANGKOK SITE AREA: 16-0-81 RAI LAND TENURE: LEASEHOLD, 30 YEARS LEASE CONTRACT WITH TREASURY DEPT. SIZE: 3 FLR, 86 ROOMS CONSTRUCTION PROGRESS: 73.6% (as of 30 Jun 14) EXPECTED OPENING: NOV 2014 TDC: THB 690MN LOCATION: SATHORN, BANGKOK, DIRECT ACCESS TO BTS SURASAK SITE AREA: 3,828 SQM (2-1-57 RAI) LAND TENURE: FREEHOLD SIZE: 33 FLR, 396 ROOMS TYPE: Business/Leisure Grand Hotel TOTAL NLA: 17,561 SQM

EASTIN GRAND SATHORN – 4 Stars U SATHORN HOTEL – 4 Stars

17 1Q 14/15 earnings presentation Section 2: Business Updates

prepared by Investor Relations department BTS Group Holdings PCL

>1.0 >1.2 >1.5 >1.8 >2.1 >2.5 >2.8 DEC 12 MAY 13 JUL 13 OCT 13 DEC 13 MAR 14 JUN 14

CENTRAL CLEARING HOUSE (CCH) PROJECT

Services Update

NUMBER OF RABBIT CARDS MINI BIG C PROJECT

• rabbit can be used to top-up value at Mini Big C branches in

Bangkok Metropolitan area

• Mini Big C rabbit card special promotion: receive THB 5

cash coupon with minimum usage of THB 100 at Mini Big C through Mini Big C rabbit card

million cards

• BTSC, as part of BVS consortium, offered lowest bid for

design and implementation of CCH system for common ticketing system

• In process of negotiating contract terms
• Expected contract finalisation:

September 2014

• rabbit will be able to top-up value and be used at Siam Paragon

department store’s food court starting September 2014

18

SIAM PARAGON FOOD COURT PROJECT

1Q 14/15 earnings presentation Section 2: Business Updates

prepared by Investor Relations department BTS Group Holdings PCL

19

TFRIC12 – Service Concession Arrangements

• TFRIC 12 relates to service concessions between government / other public sector body and private sector

companies in relation to infrastructure assets

• This accounting standard impacts BTS mass transit existing O&M contract only and was adopted in 1Q 14/15
• Under TFRIC12, train procurement under the existing 30-year O&M contract is considered as ‘financing of rolling

stock’ by BTSC for the public sector entity

• BTSC has right to receive cash from the public sector entity over the contract period and at the end of contract,

public sector entity controls significant residual interest of the infrastructure

• Under TFRIC12, existing O&M Revenue is now reclassified into 3 different components
• Train procurement service income  income from providing the rolling stocks
• Interest income  implied interest income from financing the rolling stocks
• Service income  income from providing O&M services ie. non-rolling stocks provision
• Under TFRIC12, rolling stock is not considered as operating assets of the Operator (BTSC), but “Receivable under

concession agreement”

• Rolling stocks have been reclassified from “Property, plant and equipment” to “Receivable under concession

agreement”

IMPACT TO F/S

1Q 14/15 earnings presentation Section 2: Business Updates

prepared by Investor Relations department BTS Group Holdings PCL

Same amount of revenue over 30 years “BEFORE” and “AFTER” TFRIC12

20

TFRIC12 – Service Concession Arrangements

• 2,000.0

4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0

Before TFRIC12

O&M revenue

THB mn

• 2,000.0

4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0

After TFRIC12

Interest income Train procurement revenue O&M revenue

THB mn

1Q 14/15 earnings presentation Section 2: Business Updates

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 1Q 14/15 FINANCIAL PERFORMANCE

Section

2

Section

3

BUSINESS UPDATES BTSGIF 1Q 14/15 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

21 1Q 14/15 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

200 600 1,000 190 10 Mass transit Media Property* Services BTS Group

2014/15 BTS Group Targets and CAPEX

1Q 14/15 earnings presentation Appendix 1: 2014/15 BTS Group Targets and CAPEX 22

BTS GROUP CAPEX (THB mn) BTS GROUP TARGETS

FY 14/15 TOTAL CAPEX*: THB 2,000MN

* excludes real estate development cost

MASS TRANSIT MEDIA

5 – 8% Ridership Growth 1% Effective Fare Increase 13 – 17% Revenue Growth

PROPERTY

THB 800mn Residential Property Revenue THB 1,000mn Commercial Property Revenue

SERVICES

3.5mn Rabbit Cards 17% O&M Revenue Growth 2014/15 BTSGIF CAPEX is expected to be approx. THB 180mn (not included in BTS Group CAPEX)

prepared by Investor Relations department BTS Group Holdings PCL

IMPACT BEFORE AFTER Total contract value (30 years, excl. VAT) THB 174,899 mn Same O&M “Revenue” in Income Statement Recorded as “Service Income” THB 1,635 mn Recorded as 3 separate line items:-

• 1. “Service Income” THB 1,413 mn
• 2. “Train procurement service income” THB 50 mn
• 3. “Interest Income” (on financing rolling stock) THB

132 mn “Cost” of O&M in Income Statement

• Included in “Cost of Services”
• “Depreciation” of rolling stocks

included in “Cost of O&M services”

• Same
• No “Depreciation”

Rolling Stock Capex Not shown in Income Statement Shown as “Train procurement service income under concession agreement” PP&E on Balance Sheet: Rolling stock included in PP&E Rolling stock included as ‘Receivable under concession agreement’

23 1Q 14/15 earnings presentation Appendix 2: TRFIC12 - Service Concession Arrangements

TFRIC12 – Service Concession Arrangements

IMPACT TO F/S

prepared by Investor Relations department BTS Group Holdings PCL

IR Contacts

Address: BTS Group Holdings PCL IR Department 15th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd., Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8611-15 Email: ir@btsgroup.co.th Fax: +66(0) 2273 8610 Website: www.btsgroup.co.th

Thank You

24 1Q 14/15 earnings presentation