BTS Group Holdings PCL SET OPPORTUNITY DAY 2Q 2016/17 EARNINGS - - PowerPoint PPT Presentation

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Holdings PCL

SET OPPORTUNITY DAY

2Q 2016/17 EARNINGS PRESENTATION

2 9 N O V E M B E R 2 0 1 6

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, 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 2Q 2016/17 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 2Q 2016/17 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

3 2Q 2016/17 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

2Q 2016/17 Financial Highlights

4 2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

PROFITABILITY BALANCE SHEET 6-MONTH CASH FLOW

• Net recurring profit (before MI) was THB 445mn, rising 6% YoY from higher

interest income and lower share of net loss from associates/JVs

• Reported net profit (after MI) was THB 548mn, up by 16% YoY mainly from

an increase in other recurring income as well as the recognition of some non- recurring gains

• Balance sheet strength:
• THB 16.1bn cash & liquid investments*
• Low leverage: Net D/E ratio at 0.26x
• Company Credit rating: A / STABLE from FITCH & TRIS
• Expansionary balance sheet: THB 22bn BTSC debenture issue

*Cash and liquid investments include cash bal. of THB 2.5bn, current investments of THB 3.1bn, long term investments of THB 10.5bn

All 4 BUs under investment stage:

• Mass Transit: Rolling stock (BTSGIF & BTSC) and E&M work (Green line

extensions)

• Media: VGI (domestic and overseas)
• Property: THB 1,462mn net loans mainly to BTS-SIRI JVs and Bayswater
• Services: THB 750mn investment in Rabbit Line Pay

prepared by Investor Relations department BTS Group Holdings PCL

2Q 2016/17 Major Developments

• Record Farebox revenue of THB 1,717mn up

7.2% YoY

• Investment in new rolling stock (THB 1.2bn)
• O&M revenue rose by 4.1% YoY
• The Pink and the Yellow line bid submission

5 2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

MASS TRANSIT

• Media revenue grew substantially by

33% YoY from full quarterly MACO consolidation

• Increasing buildings portfolio (to 146

buildings from 118 buildings in 2Q 15/16)

• Established footprint overseas (KL

transaction)

MEDIA

• The launch of the 5th BTS-SIRI JV condo (“The

Base Rama 9”); 72% sold with 24% foreign participation

• JV backlog as of 30 Sep 16 of THB 14bn
• Share of loss in BTS-SIRI JVs narrowed. THB

864mn revenue recognised from the Line Sukhumvit 71

PROPERTY

Expansion of Services revenue of 20% YoY due to

• Services projects of BPS
• Insurance commission revenue and

content advertising revenue from Rabbit Internet Group

• ChefMan restaurant

SERVICES

prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

2Q 2016/17 Overview

INCOME STATEMENT (THB mn) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 % QoQ 1H 2016/17 1H 2015/16 %YoY Operating Revenues1 1,722.3 1,704.1 1.1% 1,553.5 10.9% 3,275.8 3,276.0 0.0% Gross operating profits 996.5 1,001.9 (0.5)% 914.2 9.0% 1,910.7 1,923.0 (0.6)% Operating EBITDA2 623.0 740.5 (15.9)% 636.1 (2.1)% 1,259.1 1,404.9 (10.4)% Net recurring profit – before MI 445.4 421.0 5.8% 460.8 (3.4)% 906.2 944.3 (4.0)% Accounting EBITDA 983.6 833.9 18.0% 990.7 (0.7)% 1,974.4 5,147.5 (61.6)% Net income (loss)3 548.1 473.8 15.7% 548.0 0.0% 1,096.2 3,490.1 (75.2)% Gross operating profit margin (%) 57.9% 58.8% 58.8% 58.3% 58.7% Accounting EBITDA margin (%) 45.6% 42.3% 50.5% 48.2% 72.1% Recurring net profit margin (%) 23.6% 25.3% 26.5% 25.0% 27.8% Operating EBITDA margin (%) 36.2% 43.5% 40.9% 38.4% 42.9%

P&L SNAPSHOT

37% Mass Transit 41% Media 8% Property 14% Services

2Q 2016/17 OPERATING REVENUE BREAKDOWN

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

6 2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

1,704 1,722 (9) 176 (188) 40 2Q 15/16 Mass transit Media Property Services 2Q 16/17 (1)% 33%

(THB mn)

(57)% 20%

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit

7

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• O&M revenue rose by 4% YoY to THB 411mn mainly from the

contractually agreed increase in operating fee of the Sukhumvit extension and Silom extension

• Share of net profit in BTSGIF decreased 11% YoY to THB 199mn

from higher BTSGIF’s CAPEX, mainly from the first payment of new rolling stocks (THB 195mn)

• Costs rose 10% YoY to THB 227mn largely due to higher payroll

expenses.

• Operating EBITDA margin dropped YoY to 65.8% from (68.9% in 2Q

2015/16)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 %QoQ 1H 2016/17 1H 2015/16 %YoY Revenue 642.3 650.8 (1.3)% 671.1 (4.3)% 1,313.4 1,286.8 2.1% O&M revenue 410.9 394.9 4.1% 417.3 (1.5)% 828.2 788.9 5.0% Share in BTSGIF 199.0 222.6 (10.6)% 221.2 (10.0)% 420.3 431.0 (2.5)% Int income from train procurement 32.3 33.3 (3.0)% 32.6 (0.9)% 64.9 66.9 (3.0)% Costs of revenue 227.3 207.4 9.6% 219.7 3.5% 446.9 416.1 7.4% Gross profit 415.0 443.4 (6.4)% 451.4 (8.1)% 866.5 870.8 (0.5)% Operating EBITDA 422.3 448.3 (5.8)% 458.4 (7.9)% 880.8 880.1 0.1% Gross margin (%) 64.6% 68.1% 67.3% 66.0% 67.7% Operating EBITDA margin (%) 65.8% 68.9% 68.3% 67.1% 68.4%

OPERATING REVENUE BREAKDOWN

64% O&M Share in BTSGIF 31%

2Q 2016/17

Int income from train procurement 5%

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

379 392 386 392 394 395 395 409 417 411 34 34 33 34 34 33 33 33 33 32 166 217 194 147 208 223 219 197 221 199 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 2Q 16/17 Share of NP in BTSGIF (THB mn) Int income from train procurement (THB mn) O&M (THB mn)

prepared by Investor Relations department BTS Group Holdings PCL

Media

8

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Overall Media revenue up 33% YoY to THB 703mn mainly from the

full quarter effect of the consolidation of MACO’s Outdoor media segment

• BTS-related media revenue rose by 1% YoY to THB 474mn despite

the slowdown of the overall advertising industry

• Outdoor & Office Buildings and Other Media revenue grew THB

169mn to THB 230mn mainly from (i) the full quarter effect of the consolidation of MACO (ii) the increase in the number of office buildings, which grew to 146 buildings (118 buildings in 2Q 2015/16)

• Operating EBITDA margin dropped YoY to 51.0% (63.2% in 2Q

2015/16) 33% Outdoor & Office Buildings and Others 67% BTS - Related

MEDIA (THB mn) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 %QoQ 1H 2016/17 1H 2015/16 %YoY Operating revenue 703.0 527.4 33.3% 541.7 29.8% 1,244.7 1,066.6 16.7% Costs of revenue 223.6 147.3 51.9% 160.4 39.5% 384.0 324.8 18.2% Gross profit 479.4 380.2 26.1% 381.3 25.7% 860.7 741.8 16.0% Operating EBITDA 358.4 333.2 7.6% 327.1 232.6% 685.5 650.4 5.4% Gross margin (%) 68.2% 72.1% 70.4% 69.1% 69.5% Operating EBITDA margin (%) 51.0% 63.2% 60.4% 55.1% 61.0%

2Q 2016/17

OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

754 787 780 605 539 527 512 491 542 703

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 2Q 16/17

prepared by Investor Relations department BTS Group Holdings PCL

319 331 341 364 233 331 161 171 142 142

1,411 9,469

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 2Q 16/17 Operating revenue Proceeds from land sale

Sale of assets to U City

Property

9

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Operating revenue was THB 142mn, decreasing 57% YoY from the

reduction in residential property

• Residential property revenue was THB 7mn, down 97% YoY mainly

due to no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred (2Q 2015/16: transferred 62 units)

• Commercial property revenue increased 14% YoY to THB 136mn

mainly from an increase in revenue from U Sathorn Hotel and higher rental and services revenue

• Operating costs decreased by 57% YoY to THB 89mn.
• Operating EBITDA margin decreased to -3.4% (13.9% in 2Q

2015/16)

Sale of Mo Chit land

5% Residential Commercial & Others 95%

OPERATING PERFORMANCE

PROPERTY (THB mn) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 %QoQ 1H 2016/17 1H 2015/16 %YoY Operating Revenue 142.3 330.7 (57.0)% 141.9 0.2% 284.2 563.8 (49.6)% Costs of revenue 88.5 204.6 (56.8)% 90.9 (2.7)% 179.4 344.6 (47.9)% Gross profit 53.8 126.2 (57.3)% 51.0 5.5% 104.8 219.1 (52.2)% Operating EBITDA (4.8) 46.0 (110.5)% (2.9) 66.7% (7.7) 59.9 (112.9)% Gross margin (%) 37.8% 38.1% 35.9% 36.9% 38.9% Operating EBITDA margin (%) (3.4)% 13.9% (2.0)% (2.7)% 10.6%

OPERATING REVENUE BREAKDOWN

2Q 2016/17

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

Services

10

HISTORICAL OPERATING REVENUE (THB mn)

KEY FACTORS

• Revenue

Revenue increased by 20% YoY to THB 235mn from (i) an increase in revenues of THB 29mn from BPS projects, (ii) an increase in revenue of THB 20mn from Rabbit Internet Group and (iii) an increase in revenue from ChefMan Restaurants of THB 16mn

• Costs & SGA

Costs increased by 30% YoY to THB 186mn. SG&A rose by 57% YoY to THB 82mn. Key costs and SG&A items were mainly from (i) staff costs and (ii) marketing expenses of Rabbit Internet Group and BSSH

• Operating EBITDA margin decreased to -2.9% (12.1% in 2Q

2015/16) 49% ChefMan BSS 29%

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

SERVICES (THB MN) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 %QoQ 1H 2016/17 1H 2015/16 %YoY Revenue 234.8 195.1 20.3% 198.7 18.1% 433.5 358.8 20.8% Costs of revenue 186.4 142.9 30.4% 168.4 10.7% 354.8 267.5 32.6% Gross profit 48.3 52.2 (7.3)% 30.4 59.2% 78.7 91.3 (13.8)% Operating EBITDA (6.8) 23.6 (128.7)% (27.6) (75.4)% (34.4) 42.4 (181.3)% Gross margin (%) 20.6% 26.7% 15.3% 18.2% 25.4% Operating EBITDA margin (%) (2.9)% 12.1% (13.9)% (7.9)% 11.8%

2Q 2016/17

BPS 13% Rabbit Internet Group 9%

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

126 144 138 139 164 195 190 193 199 235 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 2Q 16/17

prepared by Investor Relations department BTS Group Holdings PCL

46,917 45,976 5,796 6,058 12,455 17,448

31-Mar-16 30-Sep-16 Total current liabilities Total non-current liabilities Total shareholders' equity

65,169 69,483 55,002 59,414 10,167 10,069

31-Mar-16 30-Sep-16 Total current assets Total non-current assets

65,169 69,483 Cash 31 Mar 16: THB 2.36bn 30 Sep 16: THB 2.52bn Current Investments 31 Mar 16: THB 3.27bn 30 Sep 16: THB 3.12bn Long-Term Investments 31 Mar 16: THB 9.56bn 30 Sep 16: THB 10.47bn Restricted Deposits 31 Mar 16: THB 1.24bn 30 Sep 16:

• Gross Debt

31 Mar 16: THB 9.28bn 30 Sep 16: THB 14.45bn Net Debt 31 Mar 16: THB 6.92bn 30 Sep 16: THB 11.93bn ***** Issued Ordinary Shares 31 Mar 16: 11,929.3mn 30 Sep 16: 11,934.9mn

Balance Sheet

84% 16% 14% 86% 25% 66% 9% 72% 19% 9%

2Q 2016/17:

0.31x

2Q 2015/16: 0.06x

Gross Debt to Equity

11

2Q 2016/17:

0.26x

2Q 2015/16: 0.03x

Net Debt to Equity

2Q 2016/17:

4.68x

2Q 2015/16: 0.59x

Net Debt to Operating EBITDA

2Q 2016/17: 6.95x 2Q 2015/16: 10.65x

Interest Coverage

2Q 2016/17:

0.58x

2Q 2015/16: 1.91x

Current Ratio

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

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 2Q 2016/17 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

12 2Q 2016/17 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Quarterly Ridership in Core Network

13

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

• New quarterly ridership record = 61.7mn trips, +5.5% YoY, +9.3% QoQ
• Quarterly average weekday ridership = 748,459, +6.0% YoY
• Quarterly average fare = THB 27.8 per trip, +1.6% YoY, -1.0% QoQ
• Net farebox revenue = THB 1,717mn, 7.2% YoY, 8.2% QoQ
• Ridership: increasing 5.5% YoY, mainly from organic growth and last

year’s low base effect from the bombing at Ratchaprasong

• Fare: increasing 1.6% YoY from cancellation of promotional prices for

store-valued card since January 2016

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

58.5 59.1 59.1 56.5 61.7 7.1% 4.7% 4.8% 1.0% 5.5% 4.7% 1.0% 0.0%

• 4.4%

9.3%

• 50.0%

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

Ridership (mn trips) Ridership Growth (% YoY) Ridership Growth (% QoQ)

27.4 27.8 27.9 28.1 27.8 2.8% 3.5% 4.0% 4.6% 1.6% 2.0% 1.6% 0.4% 0.6%

• 1.0%

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

Average Fare (THB/trip) Average Fare Growth (% YoY) Average Fare Growth (% QoQ)

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Timeline and Progress: Green Line South & North Extensions

14

MAR 2012 Civil works start MAR 2016 MOU between MRTA & BMA signed 2016 Expected O&M contract signed LATE 2018 Targeted full operation GREEN SOUTH (12.8KM, 9 STATIONS) GREEN NORTH (18.4km, 16 STATIONS) MAR 2017 Expected 1st station operation (Samrong – E15 operation) MID 2015 Civil works start MAR 2016 MOU between MRTA & BMA signed 2016 Expected O&M contract signed 2020 Targeted full operation Civil Work Construction Progress (as of October 2016)

Green South

99%

Green North

15%

Source: MRTA, the Company

EARLY 2018 Expected 1st station operation

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

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Procurement of 184 Carriages - Thailand’s Largest Train Order

15

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

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

• 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) or approximately THB 10bn.

• 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.

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

E&M Works for Green Line South & North Extensions

16

E&M SALES & INSTALLATION, TOTAL VALUE ≈ 19BN

• On 28 Jun 2016, BTSC signed the contract with Krungthep Thanakom (KT) for Electrical & Mechanical (E&M) provision and installation
• KT will repay costs in a lump sum after four years, although KT also has an option to defer payment to be in six years instead of four
• On 30 Jun 2016, BTSC signed the contract with Suppliers Consortium (“Bombardier” is included) for supplying and installing the E&M

Systems on Green Line extensions

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

Source: MRTA, the Company

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

Timeline and Progress: The Pink and The Yellow Line

17

Source: MRTA, the Company, Thaigov website

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

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

April 2017

Expect contract to be awarded and signed

• 7 November 2016: “BSR Joint Venture”, a Joint Venture between BTS Group,

Sino-Thai Engineering & Construction PCL (“STEC”) and Ratchaburi Electricity Generating Holding PCL (“RATCH”), submitted a tender offer of the Pink line and the Yellow line (total project value for both lines of THB 105.5bn)

• PPP net cost model (MRTA is responsible for land expropriation costs, the

winner will invest in civil work, E&M including rolling stocks and operation and maintenance services)

• Concession period: 33 years and 3 months (3 years and 3 months of

construction, 30 years of operation and maintenance) PINK (34.5 KM, 30 STATIONS) YELLOW (30.4KM, 23 STATIONS)

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA UPDATE

Expanding Our Transit Media Footprint in Malaysia

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

VGI Puncak Berlian

• Wholly-owned subsidiary of

Redberry Sdn Bhd, Malaysia’s

• No. 2 OOH media company:-
• Diversified media portfolio

(transit, in-store, cinema and

• utdoor)
• Largest transit advertising

assets with exclusive concessionaires

Utusan Airtime Ikatan Asli

• A subsidiary of Utusan Media

Sales Sdn Bhd

• Exclusive marketing agent for

national broadcaster RTM

• Manages advertising for 2

national TV channels

• Manages 6 national and 26

regional radio stations

• 18 years of experience in

advertising business

• Outdoor Media Specialists

with key profile clients including Celcom, TM and SP Setia

• No. 1 in Transit media
• Exclusive transit contract until

2029

• No. 1 in Office building media
• Diversified media portfolio

(transit, office, outdoor, aviation, online)

• Highest margin OOH media

company in Thailand

TITANIUM COMPASS

19% 51% 20% 10%

is awarded 10 -year contract to manage Advertising media at SBK Line (the first heavy rail mass transit) in Kuala Lumpur, Malaysia

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA UPDATE

Expanding Our Transit Media Footprint in Malaysia

19 2Q 2016/17 earnings presentation Section 2: Business Updates

• SBK Line (KL MRT 1, green line), the first heavy

rail mass transit in KL, Malaysia

• 51 km, 31 stations (incl. 7 underground

stations), 58 trains

• Expected commencement: 1st phase (11

stations) by the end 2016 and full operation by mid 2017

• Expected to serve approximately 400,000

passengers per day in the first year

SBK LINE FACTSHEET

prepared by Investor Relations department BTS Group Holdings PCL

PROPERTY UPDATE

Launches of BTS-Sansiri Projects

20 2Q 2016/17 earnings presentation Section 2: Business Updates

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

• No. of units

473 (38 floors)

• Avg. selling price /

sqm THB 175k; fully furnished Expected transfer Sep 2019 Expected transfer complete Mar 2020 Distance from mass transit 700m from ARL Ramkamhaeng Project value THB 2.2bn

• No. of units

639 (36 floors)

• Avg. selling price /

sqm THB 105k Expected transfer May 2019 Expected transfer complete Sep 2019 100% SOLD 80% SOLD

THE LINE ASOKE - RATCHADA THE BASE GARDEN RAMA 9 THE LINE RATCHATHEWI

100% SOLD

THE LINE JATUJAK-MO CHIT

100% SOLD

THE LINE SUKHUMVIT 71

100% SOLD

STARTED TRANSFERS IN SEP 2016 EXPECT TO TRANSFER IN OCT 2017 EXPECT TO TRANSFER IN MAY 2018

PROJECT VALUE OF THB 2.0BN PROJECT VALUE OF THB 5.7BN PROJECT VALUE OF THB 2.9BN

prepared by Investor Relations department BTS Group Holdings PCL

SERVICES UPDATE

21

6.5mn cards 5.3mn cards

2015/16 ACTUAL 2016/17 TARGET Rabbit Card in circulation

2,000 retail shops

Retail Shops

6.3mn cards 1,559 retail shops 1,479 retail shops 4,500 readers

Card Reader

3,000 readers 3,245 readers 3mn membership

Rabbit Rewards Membership

2.2mn membership 2.4mn membership

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

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

Section

1

BTSG 2Q 2016/17 FINANCIAL PERFORMANCE

Section

2

BUSINESS UPDATES

APPENDICES

22 2Q 2016/17 earnings presentation

prepared by Investor Relations department BTS Group Holdings PCL

2,365 2,524** (2,178)* (57) 2,394 Beginning cash (31/3/16) CFO CFI CFF Ending cash (30/9/16)

6 Months Cash Flow Snapshot

23

* After tax (THB 368.6mn) and interest expense (THB 69.9mn) ** Excluding THB 13.6bn liquid investments

• Increase in loans to related parties
• Net cash paid for other long-term

investment

• Investment in Rabbit Line Pay and

BTS-SIRI JVs

• Decrease in current investments
• Release of collateral (restricted

deposits) in relation to offshore loan

• Dividend income
• Increase in Bills of Exchange payables
• Cash received from sale of VGI shares
• Dividend payment
• Cash paid for loans from financial

institutions

• BTSC last tranche debenture repayment
• Increase in advance to

contractors (E&M works)

• Increase in advances to

purchase of assets (first payment of rolling stocks)

(THB mn)

2Q 2016/17 earnings presentation Appendix: 6-month Cash Flow Snapshot

prepared by Investor Relations department BTS Group Holdings PCL

Breakdown of Share of Income /(Loss) from Investments

in JVs and Associates

24 2Q 2016/17 earnings presentation Appendix: Breakdown of Share of Income (Loss) from Investments and JVs

Per Financial Statements (THB mn) 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17 2Q 2016/17 Share of loss from investments in JVs (87.8) (70.8) (94.1) (94.3) (66.3) Share of loss from investments in associates 168.6 199.6 225.9 193.9 175.5 Total 80.8 128.8 131.8 99.6 109.1 Share on Investments in Associates (THB mn) 2Q 2015/16 2Q 2016/17 Remarks Absolute Hotel Services (AHS) 2.4 1.5 BTSGIF 222.6 199.0

Advance payment of rolling stock

MACO and Aero Media 11.2 0.1

Full quarter of MACO’s consolidation

U CITY (67.7) (26.6)

No unrealised loss from mark to market trade securities

MACO’s associates

• 1.5

Total 168.5 175.5 Share on Investments in Joint Ventures (THB mn) 2Q 2015/16 2Q 2016/17 Remarks ATS (AEON-Rabbit)

• 3.4

Bayswater

• (32.0)

Interest expense to BTS Group

BTS-SIRI JV projects (87.8) (28.3)

Transferred 128 units of The Line Sukhumvit 71

Rabbit LINE Pay

• (9.3)

Total (87.8) (66.3)

prepared by Investor Relations department BTS Group Holdings PCL

MASS TRANSIT UPDATE

OCT 2016 & YTD 2016/17 Ridership in Core Network

25

RIDERSHIP SUMMARY

• Ridership = 19.9mn trips, +0.7% YoY, -1.9% MoM
• Fare (before disc.) = THB 28.0/trip, +1.2% YoY
• Fare-box revenue = THB 557.3mn, +1.9% YoY
• Average weekday ridership = 728,614 trips, +1.1% YoY

FY 2016/17 Ridership Growth Target 5-6% YTD Ridership Growth Actual +2.9% FY 2016/17 Fare Increase Target 1%  YTD Fare Increase Actual +2.7% FY 2016/17 Farebox growth Target 6-7% YTD Farebox Increase Actual +5.7%

17.8 18.5 20.2 20.2 21.2 20.3 19.9

• 1.0%

0.0% 3.9% 0.1% 10.3% 6.3% 0.7%

• 2.0%

16.0 17.0 18.0 19.0 20.0 21.0 22.0

Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Ridership (mn trips) % YoY ridership growth

2Q 2016/17 earnings presentation Appendix: OCT 2016 & YTD 2016/17 Ridership in Core Network

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group: A Key Participant in Mass Transit Development

Focused on 7 lines; total length of 137.7km

2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines 26

LINE ROUTE AUTHORISING BODY TARGETED OPERATE YEAR CONSTRUCTION PROGRESS

• No. of

station DISTANCE (KM)

BLUE HUA LAMPHONG - BANG KHAE MRTA 2019 UNDER CONSTRUCTION 11 14.0 BLUE BANG SUE - THA PRA MRTA 2019 UNDER CONSTRUCTION 9 13.0 BLUE BANG KHAE - BHUDHAMONTHON 4 MRTA 2021 4 8.0 DARK RED BANG SUE - RANGSIT SRT 2021 UNDER CONSTRUCTION 8 26.3 DARK RED BANG SUE – HUA LUM PHONG SRT 2020 5 6.5 LIGHT RED BANG SUE – PHAYATHAI – MAKKASAN – HUAMAK SRT 2020 9 19.0 DARK GREEN SOUTH BEARING - SAMUT PRAKARN BMA 2018 UNDER CONSTRUCTION 9 12.8 DARK GREEN NORTH MO CHIT – SAPHAN MAI – KHU KHOT BMA 2020 UNDER CONSTRUCTION 16 18.4 LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 6 7.0 LRT BANG NA - SUVARNABHUMI BMA 2021 14 18.3 GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2021 15 16.3 PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 30 34.5 YELLOW LAD PRAO – SAM RONG MRTA 2020 23 30.4 DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2021 4 7.0 DARK GREEN KHU KHOT - LUMLUKKA MRTA 2021 4 7.0 ORANGE EAST THAILAND CULTURAL CENTER - MIN BURI MRTA 2020 17 21.2

TOTAL (KM) 259.7

259.7KM ONGOING PROJECTS PRIORITISED BY GOVERNMENT IN 5 YRS, 84.5KM UNDER CONSTRUCTION

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

137.7km

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)

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group: A Key Participant in Mass Transit Development BTSG well-positioned for new contracts

2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines 27

PINK LINE

• Khae Rai – Min Buri (34.5km)
• Bidding submission: Nov 2016
• Targeted contract signed: Apr 2017
• Target operation: 2020

DARK GREEN NORTH LINE

• Mo Chit – Saphan Mai – Khu Khot (18.4km)
• Status: under construction
• Expected O&M award: 2016
• Target operation: 2020

GREY LINE

• Watcharaphol – Rama 9 Bridge (26.0km)
• Awaiting EIA approval
• Expected bidding (Phase I): 2017
• Target operation (Phase I): 2021

Phase I: Watcharaphol – Thong Lo (16.3km)

LIGHT RAIL TRANSIT (LRT)

• Bang Na – Suvarnabhumi (18.3km)
• Expected bidding: 2017
• Target operation: 2021

DARK GREEN SOUTH LINE

• Bearing – Samut Prakarn (12.8km)
• Status: under construction
• Expected O&M award: 2016
• Target operation: Late 2018

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

LIGHT GREEN LINE

• Bang Wa – Borommaratchachonnani

(7.0km)

• Expected O&M award: 2017
• Target operation: 2019

YELLOW LINE

• Lad Prao– Sam Rong (30.4km)
• Bidding Submission: Nov 2016
• Targeted contract signed: Apr 2017
• Target operation: 2020

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

LRT, Grey and Light Green Line

28 2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines

CURRENT STATUS: The route already includes in the master plan and approved by CMLT/BMC Awaiting EIA approval and cabinet’s acknowledgment 2017 Expected bidding 2021 Target operation year 2021 Target operation year LRT (18.3km) GREY PHASE I (26.0km) LIGHT GREEN (7km) 2019 Target operation year 2017 Expected O&M award CURRENT STATUS: The route already includes in the master plan and approved by CMLT Awaiting EIA approval and cabinet’s acknowledgment 2017 Expected bidding CURRENT STATUS: Awaiting to be included in the new master plan Awaiting EIA approval, BMC approval (CMLT already approved in the principle)

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Funding Requirements

BTS Pipeline

29 2Q 2016/17 earnings presentation Appendix: Mass Transit Funding Requirements

20,135 22,354 42,489 8,598 10,760 26,727 24,251 8,616 11,750 90,702 3,572 4,940 2,096 10,608

Dark Green South Dark Green North Pink Yellow LRT Light Green Grey Total Rolling Stock E&M Civil work

KEY ASSUMPTIONS

Total CAPEX/financing for expected lines = THB 144bn with D/E Ratio = 2.5 : 1 Total equity required by BTS Group = THB 41bn*

Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA), Bangkok Metropolitan Administration (BMA) and Company estimates

143,799 46,605** 46,862**

12.8km 18.4km 34.5km 30.4km 7.0km 16.3km 137.7km 18.3km

*If assume 50:50 JV, equity required by BTS Group for pink and yellow lines will be THB 28bn ** Excludes approximately THB 6bn in each line for land expropriation and other costs which are the costs invested by the government

12,170 15,700

PROJECTED CAPEX/FINANCING BREAKDOWN OF EXPECTED FUTURE LINES (THB mn)

prepared by Investor Relations department BTS Group Holdings PCL

MEDIA UPDATE

Acquisition of Rabbit

30

7 November 2016: VGI’s Extraordinary General Meeting approved the acquisition of 90% in BSS from BTSC and 90% in BSSH from BTSG.

Investment cost of THB 1,956.5mn to acquire both BSS and BSSH 90% of BSS from BTSC Number of shares: 3,600,000 shares Price: THB 184.39 per share Investment cost: THB 663.8mn 90% of BSSH from BTSG Number of shares: 10,800,000 shares Price: THB 119.69 per share Investment cost: THB 1,292.7mn Source of funds: CFO and/or credit facilities

PRE COMPANY STRUCTURE POST COMPANY STRUCTURE

100% 97.5% 90% 10% 21.3% 51% 60% 51% 25% 80% 49% 49% 51% 51%

BTSG VGI Bangkok Bank

• 41.0% Kanjanapas Family
• 59.0% BTSG’s Minorities

BSSH BTSC BSS ATS BPS Rabbit Internet Rabbit Pay Ask Broker Ask Direct

• 0.5% Kanjanapas Family
• 27.2% Public

BTSG VGI BTSC BSSH BSS ATS BPS Rabbit Internet Rabbit Pay Ask Broker Ask Direct

97.5% 21.3% 60% 90% 90% 25% 80% 51%

Bangkok Bank

10% 10% 49% 49% 51% 51%

Rabbit Line Pay

50%

TIMELINE OF ACQUISITION AND CONSOLIDATION TRANSACTION SUMMARY

22 AUG 16: VGI’s BOD approved the acquisition of 90% in BSS and BSSH (“Rabbit”), which subject to EGM on 7 November 2016 7 NOV 16: EGM approved the acquisition transaction of Rabbit 31 MAR 17: To complete the transaction 1 APR 17: To start consolidating financial statement

2Q 2016/17 earnings presentation Appendix: Acquisition of Rabbit

prepared by Investor Relations department BTS Group Holdings PCL

Project Name Presale Period Project Value (THB mn) Units

• Avg. Price

per sqm (THB) Sold Construction Progress* Est. Transfer Start Est. Transfer Completion Foreign Participation THE LINE Jatujak – Mochit May 2015 5,727 841 179k 100% 48% Oct 2017 Dec 2017 14% THE LINE Sukhumvit 71 Aug 2015 1,990 291 169k; fully furnished 100% 96% Oct 2016 Dec 2016 48% THE LINE Ratchathewi Oct 2015 2,925 231 266k 100% 18% May 2018 Sep 2018 15% THE LINE Asoke-Ratchada Jun 2016 2,983 473 180k; fully furnished 100% 0% Apr 2019 Sep 2019 36% THE BASE Garden Rama 9 Sep 2016 2,228 639 105k 72% 0% May 2019 Sep 2019 24% Total/Weighted Average 15,853 2,475 183k 96% 24%

Residential Property

Projects under Development & Development Pipeline

ACTIVE RESIDENTIAL PROJECTS UNDER SIRI JV TOTAL PRESALES BACKLOG

(THB mn)

 Equity method needs to be applied to joint venture transactions  Calculated based on BTS Group’s fiscal year

* As of Sep 2016

2016 RESIDENTIAL PROPERTY LAUNCH PLAN

Launch 6 Projects with total project value of THB 25bn Projects Launched so far this year:

31 2Q 2016/17 earnings presentation Appendix: Projects under Development & Development Pipeline

1,055 14,352 5,702 5,795 1,800

FY 16/17E FY 17/18E FY 18/19E FY 19/20E BTS-SIRI JV Presales Backlog

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Business Update

BTSC Debenture Summary

32 3 November 2016: BTSC was approved by the Securities and Exchange Commission, Thailand (SEC) to issue up to THB 22,000mn senior unsecured debentures. The bonds will be issued in four tranches due in 2019, 2021, 2023, and 2026. Amount up to THB 22bn Tenor 3, 5, 7, 10 years (NC5) Rating A / Stable by Fitch and TRIS Rationale Purchase new rolling stocks and electrical and mechanical system (E&M) for the Green Line North & South extension projects Subscription Period 7 – 9 November 2016 Issuance Date 10 November 2016 Tenor Amount up to Coupon Rate 3-year THB 5.5bn 2.46% 5-year THB 2.2bn 2.85% 7-year THB 4.1bn 3.30% 10-year (NC5) THB 10.2bn 3.87% Total THB 22bn 3.31% (average)

2Q 2016/17 earnings presentation Appendix: BTSC Debenture Summary

prepared by Investor Relations department BTS Group Holdings PCL 3,300 300 3,700 430

2,850 200 1,200 180 500 Mass Transit Media Property Services BTS Group

440

FY 2016/17 BTS Group Targets and CAPEX

33

BTS GROUP REVISED CAPEX/ FINANCING (THB mn)

FY 2016/17 TOTAL CAPEX/FINANCING OF THB 12.8BN**

*Consolidates MACO from Jun 2016 onwards **Excludes real estate development cost for Property business

2016/17 BTSGIF CAPEX (REVISED) is expected to be

• approx. THB 360mn (not included in BTS Group CAPEX)

BTS GROUP TARGETS

6,330 500

Rolling stocks Outdoor Invest in BTS-SIRI JVs (gross) Land acquisition & others

200 5,400

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

MASS TRANSIT MEDIA*

30-40% Revenue Growth

PROPERTY

• THB 620mn Commercial Property Revenue
• THB 60mn Residential Property Revenue
• THB (200)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

E&M Thana City Renovation

10

2Q 2016/17 earnings presentation Appendix: BTS Group Targets and CAPEX

prepared by Investor Relations department BTS Group Holdings PCL

34 2Q 2016/17 earnings presentation

Q&A SESSION