prepared by Investor Relations department BTS Group Holdings PCL
BTS Group General Presentation
BTS Group Holdings PCL
General Presentation
November 2016
BTS Group Holdings PCL General Presentation November 2016 BTS - - PowerPoint PPT Presentation
BTS Group Holdings PCL General Presentation November 2016 BTS Group General Presentation prepared by Investor Relations department BTS Group Holdings PCL IR Contact Address: BTS Group Holdings PCL IR Department 15 th Floor, TST Tower, 21 Soi
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group General Presentation
November 2016
prepared by Investor Relations department BTS Group Holdings PCL
2
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings PCL (“BTSG”) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in BTSG and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. BTSG does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of BTSG or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or
All information contained in this document is presented as of the date indicated within, and BTSG assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. BTSG undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.
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 Fax: +66(0) 2273 8610 Email: ir@btsgroup.co.th Website: www.btsgroup.co.th BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System 3
BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
4
BTS Group General Presentation Section 1: BTS Group in Brief Company established as Tanayong Co., Ltd. (TYONG) to operate in property development field
1968
TYONG listed on the Stock Exchange of Thailand under Property Development sector
1991
TYONG established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid
1992
Commercial operation
commenced
1999
BTSC exit court supervised rehabilitation procedure
2008
BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co.,
2009
TYONG acquired 94.6% of BTSC, returning Mass Transit
primary business of the Company. The Company also changed its name to BTS Group Holdings PCL (BTSG)
2010
BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)
APR 2013
VGI Global Media PCL, the Group’s Media subsidiary, listed on the Stock Exchange
OCT 2012
BTSC signed a 30-year operating & maintenance (O&M) contract covering all Green Line extensions under the purview of the Bangkok Metropolitan Administration (BMA)
MAY 2012
prepared by Investor Relations department BTS Group Holdings PCL
50% Nine Square Property Co., Ltd. 100% Nuvo Line Agency Co., Ltd. 50% 75.47% 51% Keystone Estate Co., Ltd. 100% BTS Sansiri Holding Twelve Limited 50% Bayswater Co., Ltd. 50%
5
BTS Group Holdings PCL
BTS Group General Presentation Section 1: BTS Group in Brief
BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) 97.46% Mak8 Co., Ltd. 100% BTS Sansiri Holding Eleven Limited 50% BTS Sansiri Holding Nine Limited 50% Yongsu Co., Ltd. 100% BTS Sansiri Holding Eight Limited 50% BTS Sansiri Holding Seven Limited 50% BTS Sansiri Holding Six Limited 50% BTS Land Co., Ltd. 100% BTS Sansiri Holding Five Limited 50% Muangthong Assets Co., Ltd. 100% BTS Sansiri Holding Four Limited 50% DNAL Co., Ltd. 100% The Community One Co., Ltd. 100% Siam Paging and Communication Co., Ltd. 100% Kingkaew Assets Co., Ltd. 100% PrannaKiri Assets Co., Ltd. 100% Ratburana Property Co., Ltd. 100% Bangkok Mass Transit System PCL (BTSC) U City PCL 19.30%
MEDIA BUSINESS
41% Kanjanapas Family1 34% Institutional Investors1 25% Individual Investors1 35.64% 100%
PROPERTY BUSINESS
VGI Advertising Media Co., Ltd. 100% 888 Media Co., Ltd. 100% 100% Master Ad PCL 37.42% Aero Media Group Co., Ltd. 30% VGI Global Media PCL (VGI) 2 Point of View (POV) Media Group Co., Ltd. Unicorn Enterprise Co., Ltd. 100% Tanayong Food and Beverage Co., Ltd. 100% 100% Tanayong Property Management Co., Ltd. 33.33%
MASS TRANSIT BUSINESS
Tanayong International Ltd. 100%
SERVICES BUSINESS
RabbitPay System Co., Ltd. 80% Rabbit-Line Pay Co., Ltd. ASK Direct Group Co., Ltd. 51% Rabbit Insurance Broker Co., Ltd. 51% Rabbit Internet Co., Ltd. 25% Tanayong Hong Kong Ltd. 100% Rabbit Rewards Co., Ltd. 100% Primary Kitchen Co., Ltd. 100% BSS Holdings Co., Ltd. 100% 51% ATS Rabbit Special Purpose Vehicle Co., Ltd. Little Corner Co., Ltd. 69% Man Kitchen Co., Ltd. 70% HHT Construction Co., Ltd.3 51% Absolute Hotel Services Hong Kong Ltd.3 90% 12.26% Bangkok Smartcard System Co., Ltd.
1 Information based on book closure date on 2 Aug 16 with total issued shares = 11,934.9mn shares 2 BTSG holds 69% of VGI indirectly and directly 3 Revenue from the Company recorded under Services BU
Listed entities Subsidiaries Associates LEGEND The Community Two Co., Ltd. 100% BTS Sansiri Holding Fourteen Limited 50% 50% 50% BTS Sansiri Holding Two Limited 50% BTS Sansiri Holding Three Limited Thana City Golf & Sports Club Co., Ltd. 50% KMJ 2016 Co., Ltd.. 100% 100% Man Food Products Co., Ltd. Absolute Hotel Services Co., Ltd.3 Bangkok Payment Solutions Co., Ltd. 60% JVs BTS Sansiri Holding One Limited
prepared by Investor Relations department BTS Group Holdings PCL
6 BTS Group General Presentation Section 1: BTS Group in Brief
MASS TRANSIT
Sole concessionaire and operator of the BTS SkyTrain Core Network, its extensions and Bus Rapid Transit system
MEDIA PROPERTY SERVICES
E-money service provider for common ticketing system that can be used across mass transit systems and retail stores Residential and commercial property projects along rail mass transit route with a portfolio of land bank for future real estate development Largest Out-of-Home Media company in Thailand with exclusive contracts to manage advertising space on the BTS SkyTrain Core Network, its extensions and all BTS trains
prepared by Investor Relations department BTS Group Holdings PCL
7 BTS Group General Presentation Section 1: BTS Group in Brief
extensions & new lines coverage
revenue
BTS train capacity
BTS extension stations capacity Real estate development along mass transit worth
Leading digital lifestyle & payment service company with >10mn users
MEDIA PROPERTY SERVICES MASS TRANSIT
MASS TRANSIT NETWORK EXPANSION
prepared by Investor Relations department BTS Group Holdings PCL
121 399 548 741 FY 12/13 FY 13/14 FY 14/15 FY 15/16 1,445 2,934 1,355 896 FY 12/13 FY 13/14 FY 14/15 FY 15/16 6,016 2,077 2,274 2,441 FY 12/13 FY 13/14 FY 14/15 FY 15/16 2,795 3,121 2,926 2,069 FY 12/13 FY 13/14 FY 14/15 FY 15/16
(1) FY ended 31 March (2) VGI discontinued operations in Modern Trade Media effective 1Q 15/16 (3) Services revenue excludes revenue of HHT Construction (Thailand) Co., Ltd. as it is consolidated as cost of project under Property business
Historical operating revenues(1)
Media Revenue(2) (THB mn) Property Revenue (THB mn) Services Revenue(3) (THB mn) Mass Transit Revenue (THB mn)
Revenue contribution
(FY 15/16)
FY 15/16
FY 15/16
FY 15/16
FY 15/16
*O&M Revenue: THB 1,593mn; Share in BTSGIF: THB 847mn
BTS Group General Presentation Section 1: BTS Group in Brief 8 Operating EBITDA margin
prepared by Investor Relations department BTS Group Holdings PCL
2,748 4,359 7,073 7,094 8,048 2011/12 2012/13 2013/14 2014/15 2015/16
PROGRESSIVE DIVIDEND POLICY
Completed Minimum THB 21bn committed dividends over 3 years:
Current Policy: Not less than 50% of net profit (stand alone basis) BTS Group General Presentation Section 1: BTS Group in Brief
HISTORICAL DIVIDEND PAYMENTS / DIVIDEND YIELD KEY FIGURES (as of 31 Mar 2016) EMPLOYEES (as of 31 Mar 2016)
BTS Group Holdings 129 Mass Transit 2,144 Media 236 Property 476 Services 767 Total 3,752 THB (mn) USD (mn)** Operating revenue 6,148 175 Operating EBITDA 2,560 73 Net income*** 4,141 118 Total assets 66,811 1,896 Excess cash and liquid investments 16,435 467 Cash 2,365 67 Current investments 3,272 93 Long-term investments 9,559 271 Restricted deposits 1,239 35 Free cash flow (7,815) (222)
**Source: Bank of Thailand; based on Interbank Exchange Rate of USD 1 = THB 32.548 as of 28 May 2015 ***to equity holders of the parent
7.3% 6.2% 7.8% 4.8% 6.5%
Actual dividend paid (THB mn) Dividend yield* (%)
* Calculated based on share price one day before the Board of Directors’ approval date for relevant dividend payment
Committed dividend period
9
prepared by Investor Relations department BTS Group Holdings PCL
400 600 800 1,000 1,200 1,400 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 BTS Turnover (RHS) BTS TB SET Index (rebased)
Name % 1
41.3% 2 THAI NVDR CO., LTD. 8.8% 3 BANGKOK BANK PUBLIC COMPANY LIMITED 4.6% 4 UOB KAY HIAN PRIVATE LIMITED 1.4% 5 HSBC (SINGAPORE) NOMINEES PTE LTD 1.2% 6 STATE STREET BANK EUROPE LIMITED 1.0% 7 K EQUITY 70:30 LTF 0.8% 8 CHASE NOMINEES LIMITED 0.8% 9 K EQUITY DIVIDEND LTF 0.7% 10 BUALUANG LONG TERM EQUITY FUND (B-LTF) 0.7% TOTAL TOP 10 SHAREHOLDERS 61.3% Stock code BTS Outstanding shares (mn shares)* 11,833.5 Treasury shares (mn shares)* 0.0 Market capitalisation (THB mn) 108,557.1 Market capitalisation (USD mn) 3,034.9 Average daily traded value (THB mn) 189.1 Average daily traded value (USD mn) 5.3
SHARE INFORMATION (as of 31 May 2016)
BTS Group General Presentation Section 1: BTS Group in Brief
SHARE PRICE MOVEMENT (as of 31 May 2016) SHARE STRUCTURE (as of 14 Jun 2016)
Kanjanapas family 41.0% BTS Group treasury shares 0.8% Institutional investors 32.7% Others 25.5% Free float 57.3% Foreign limit 49.0%
TOP 10 SHAREHOLDERS (as of 14 Jun 2016)
10
THB THB mn 12M ADTV = THB 257mn
* As of 14 June 2016
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
BTS Group General Presentation 11
prepared by Investor Relations department BTS Group Holdings PCL
12.8km 150.5km
FY 15/16 2021 Target
≈8.9x ≈11.8x
“THAILAND’S LEADING MASS TRANSIT DEVELOPER AND OPERATOR” ≈11.8X BKK RAIL MASS TRANSIT LENGTH TARGET ≈8.9X MASS TRANSIT REVENUE* TARGET
MASS TRANSIT RAIL LENGTH TARGETS (KM)
Source: Office of Transport and Traffic Policy and Planning
12
*Revenue includes (i) O&M revenue from green south & north extensions, LRT, grey – phase I and light green, a total of 72.8km and (ii) farebox revenue from pink and yellow line
THB 1.6bn > THB 14bn
FY 15/16 2021 Target
74.2 79.5 94.8 100.1 100.1 100.1 461.3 508.4 31.0 31.0 31.0 36.3 36.3 36.3 143.6 2010 2011 2012 2013 2014 2015 2019T 2020T 2029T Target Network Length BTS Target Distance
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
13 OPERATOR OF CORE NETWORK EXTENSIONS
DEVELOPER OF RAIL MASS TRANSIT
BTS GROUP ROLE IN MASS TRANSIT
OPERATOR OF BTS SKYTRAIN CORE NETWORK
until Dec 2029
Core Network (23.5km)
incentive fee
by the Bangkok Metropolitan Administration (BMA)
(12.8km) from 2012 - 2042
from 2029 to May 2042
Network
invest in future mass transit lines
33.3% INVESTMENT IN BTSGIF
O O D I
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
Sources: Office of Transport and Traffic Policy and Planning, Bangkok Metropolitan Administration Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities
51%
46%
40%
36%
17%
6% RAIL MASS TRANSIT MARKET SHARE*
34.1
32.2
23.7
10.0 PERVASION
(per million population)
Source: OTP, Singapore’s Land Transport Authority, Hong Kong’s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau (rail track length per mn population)
* Percentage of people using rail mass transit over other forms of mass transit
*Includes MRTA and BMA projects
14 BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
EXISTING LINES – 107.8KM; 76 STATIONS
15
Average daily ridership
66%
685,176 286,000 61,500
1,032,676
in total
27% 7%
LINE ROUTE DISTANCE (KM) OPERATING SINCE DARK GREEN (CORE) MO CHIT – ON NUT 17.0 DEC 99 LIGHT GREEN (CORE) NATIONAL STADIUM – SAPHAN TAKSIN 6.5 DEC 99 BLUE BANG SUE – HUA LAMPHONG 20.0 JUL 04 LIGHT GREEN (EXTENSION) SAPHAN TAKSIN – WONGWIAN YAI 2.2 MAY 09 AIRPORT LINK (RED LINE) PHAYATHAI – SUVARNABHUMI 28.5 AUG 10 DARK GREEN (EXTENSION) ON NUT – BEARING 5.3 AUG 11 LIGHT GREEN (EXTENSION) WONGWIAN YAI – BANG WA 5.3 DEC 13 PURPLE BANG YAI – BANG SUE 23.0 AUG 16 CORE NETWORK EXTENSIONS TO OUR CURRENT CORE NETWORK
(2)
66%
MARKET SHARE OF RIDERSHIP (as of August 2016)(1)
BLUE BANG SUE – HUA LAMPHONG 20.0km PURPLE BANG YAI – BANG SUE 23.0km LIGHT GREEN NATIONAL STADIUM – BANG WA 14.0km DARK GREEN MO CHIT – BEARING 22.3km ARL PHAYATHAI – SUVARNABHUMI 28.5km
BTS: 36.3km
(SkyTrain)
BEM: 43.0km SRT: 28.5km
(Airport Rail Link)
(1) Based on companies’ disclosed information (2) Airport Rail Link ridership per day disclosed as of October 2016
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
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*See Appendix 1 for details of Concession Agreement
REVENUE collected by BTSC on the SkyTrain Core Network until Dec 2029
in accordance with the terms and conditions of its Concession Agreement with the BMA on the Core Network*
REVENUE under its concession agreement for the BTS SKYTRAIN CORE NETWORK to BTSGIF
BTSGIF which is the maximum permitted amount under SEC regulations
WHAT IS BTSGIF? WHAT IS THE CORE NETWORK?
DARK GREEN MO CHIT – ON NUT 17.0km LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
1,419 1,780 2,122 2,294 2,573 2,817 3,066 3,224 3,292 3,485 3,545 4,297 4,896 5,677 5,874 6,397 59 79 96 105 118 132 139 133 136 144 145 176 197 215 219 233
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Farebox revenue (THB mn) Ridership (mn)
17
Jul 04: Opening of Bangkok MRT System (Blue line) May 10: Opening of Bangkok BRT; Thai political protests Aug 10: Opening of Airport Rail Link Aug 11: On Nut – Bearing extension opening Oct – Nov 11: Floods
INITIAL GROWTH
RIDERSHIP CAGR (3 YRS): 21%
STABLE GROWTH
RIDERSHIP CAGR (5 YRS): 5%
FASTER GROWTH
RIDERSHIP CAGR (6 YRS) 8%
Dec 99: BTS SkyTrain service opening Mar 07: First fare rate increase May 09: Opening of Silom Line extension
GROWTH (15 YRS)
Nov 13: Thai political protests Dec 13: Wongwian Yai – Bang Wa extension opening Apr 13: Sale of net farebox revenue to BTSGIF Jun 13: Fare increase
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
22.1 24.2 24.2 24.1 24.4 24.4 24.8 26.4 26.9 27.5
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 SJT 36% AVG FARE THB 30.8 30-DAY PASS (ADULT)* 29% AVG FARE THB 25.8 PURSE (STV)* 27% AVG FARE THB 26.4 30-DAY PASS (STUDENT)* 7% AVG FARE THB 20.8 ONE-DAY PASS 1% AVG FARE THB 35.7
18
FARE ADJUSTMENT MECHANISM
announcement to BMA and public 30 days in advance
EFFECTIVE FARE
(No approval required)
exchange rate, interest rate or electricity costs (BMA approval required) AUTHORISED FARE
HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 15/16) DISTANCE-BASED FARE (BY NO. OF STATIONS)
THB / Trip
20.1 26.8 33.5 40.2 46.9 53.6 60.3 15.0 22.0 25.0 28.0 31.0 34.0 37.0 42.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
AUTHORISED FARE EFFECTIVE FARE POTENTIAL FARE UPSIDE
THB
* Counted as Rabbit
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
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STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION CORE COSTS AND SG&A BREAKDOWN – FY 15/16 EBITDA MARGIN COMPARISON (CORE ONLY) MAINTENANCE EXPENSES BREAKDOWN
MAINTENANCE, 13% STAFF COST, 19% UTILITIES, 7% DEPRECIATION, 51% ADMIN, 4% * FY ending 31 Mar 2014, 2015 ** FY ending 31 Dec 2013, 2014 OTHERS, 6%
BTS Group General Presentation Section 2.1: Mass Transit Business
176 197 215 219 233 67.5% 67.8% 68.8% 69.9% 72.5%
60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0%2011/12 2012/13 2013/14 2014/15 2015/16
100 120 140 160 180 200 220 240 260 280 300Core BTS SkyTrain Ridership (mn) Operating EBITDA Margin (%)
69.9% 17.4% 43.1% 72.5% 16.6% 42.6% BTS SkyTrain* Singapore MRT* Hong Kong MTR** FY 14/15 FY 15/16 391 417 377 365 344 336 386 388 200 59 40 27 11 79 95 75
250 300 350 400 450 500 550 600 6502008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Major overhaul expenses General maintenance expense (THB mn)
prepared by Investor Relations department BTS Group Holdings PCL
FLEET EXPANSION
X22 88 +42.3%
~THB 10.9bn*
X24 96 +32.4%
TOTAL FUTURE FLEET
X46 184 CURRENT FLEET
TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE) INDICATIVE CAPEX (THB mn)
X35 105
FULLY PAID
X12 48 35
FULLY PAID FULLY PAID
X5 20
FULLY PAID
TOTAL CURRENT FLEET
X52 208
20
SYSTEM DESIGN CAPACITY OF 50,000 PPHPD* CURRENT CAPACITY OF 24,000** PPHPD
* Based on 40.3621 THB/EUR average bank selling rate on 23 May 2016 Already operated in May 2013 Already fully operated in Feb 2014 To be delivered in FY 18/19 To be delivered in FY 19/20
BTS Group General Presentation Section 2.1: Mass Transit Business
Already full operated in Oct 2011
prepared by Investor Relations department BTS Group Holdings PCL
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OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999 REMAINS THE CORE NETWORK OPERATOR FOLLOWING ESTABLISHMENT OF BTSGIF
Net Farebox Revenue (transferred to BTSGIF daily) FAREBOX REVENUE OPERATING EXPENSES CAPITAL EXPENDITURE Incentive Fee
passengers in the Core BTS SkyTrain system
compensation from any person under, arising out of or relating to concession or the farebox revenue of the Core BTS SkyTrain system
business extension, media business and revenue from BTSC’s other business Cost relevant to the Core BTS SkyTrain system such as maintenance capital expenditure, labor, electricity, etc. New rolling stock for the Core BTS SkyTrain system to serve future ridership
net of
PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET 1. NO INCENTIVE FEE If actual Net Farebox Revenue ≤ 100% of Budget
On actual amount exceeding 100% but not exceeding 125% of Budget 3. FEE FROM ITEM 2 PLUS 15% OF THE INCREMENTAL AMOUNT EXCEEDING 125% If actual amount > 125% of Budget
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
THB 1.5bn THB 3.7bn THB 4.6bn
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 40/41 41/42 42/43
Interest income O&M - Core Network O&M - Extension
22
O&M COSTS AND SG&A BREAKDOWN - FY15/16
(May 2012 – May 2042)
(Dec 2029 – May 2042)
(2.2km/2 stations)
(5.3km/5 stations)
(5.3km/4 stations)
MAINTENANCE, 23% STAFF COST, 41% OTHERS, 10% CLEANING & SECURITY GUARD, 9% DEPRECIATION, 3% UTILITIES, 13%
EXTENSION
Saphan Taksin – Bang Wa
EXTENSION
On Nut - Bearing
CORE NETWORK
O&M PRE-AGREED REVENUE (Excl. VAT)
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
23
Dark Green North
(Mo Chit – Saphan Mai – Khu Khot)
Dark Green South
(Bearing – Samut Prakarn)
Pink Yellow LRT Light Green
(Bang Wa – Boromma ratchachon nani)
Grey
The only operator who can provide seamless services
Lower project CAPEX
Lower O&M OPEX
Proven track record
BTS core lines
in 35 mths
Financial strength with THB 16bn excess liquidity
Financial flexibility from the BTS-W3 warrants
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
LINE ROUTE AUTHORISING BODY TARGETED OPERATE YEAR CONSTRUCTION PROGRESS
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 THE GOVERNMENT IN 5 YRS, 84.5KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
137.7km
24
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)
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
25 BTS Group General Presentation Section 2.1: Mass Transit Business
*See Appendix 2
for details of CAPEX requirements
PINK LINE
DARK GREEN NORTH LINE
GREY LINE
Phase I: Watcharaphol – Thong Lo (16.3km)
LIGHT RAIL TRANSIT (LRT)
DARK GREEN SOUTH LINE
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
Borommaratchachonnani (7.0km)
YELLOW LINE
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
26 BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
TOTAL ADSPEND AND THAI MEDIA MARKET SHARE (FY 09/10 – FY 15/16) The transition from Traditional Media to Out-of-Home (OOH) Media was driven by urbanisation, infrastructure development and increase in number
59% 60% 59% 60% 61% 62% 60% 28% 26% 25% 24% 24% 23% 23% 7% 7% 8% 9% 9% 10% 10% 5% 6% 7% 6% 5% 4% 6% 1% 1% 1% 1%
FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16
Internet Cinema OOH Media Traditional Media TV
OOH MEDIA FY 15/16 1 FMCG 39.5% 2 COMMUNICATIONS 7.9% 3 REAL ESTATE 6.3% 4 RETAL SHOPS/STORES 6.2% 5 MEDIA & MARKETING 4.8% 6 TRAVEL & TOURS 3.8% 7 LEISURE 3.1% 8 FOOD OUTLETS & RESTAURANTS 2.7% 9 INSURANCE 2.6% 10 CREDIT/DEBIT CARDS 2.3% TOTAL 79.2%
OVERALL THAI MEDIA MARKET SHARE OOH MEDIA MARKET OVERVIEW
OOH MEDIA SECTOR PRIMARILY DRIVEN BY TRANSIT MEDIA Transit Media continued to dominate the OOH Media market and is expected to further increase with the rail mass transit network expansion. BTS Group General Presentation Section 2.2: Media Business 27
Note: Out-of-Home Media = Outdoor, Transit and In-Store Traditional Media = Radio, Newspapers and Magazines Data excludes classified ads, house ads, digital TV, cable TV and satellite TV Source: The Nielsen Company (Thailand) Limited
TOP 10 ADSPEND FOR OOH MEDIA BY BUSINESS SEGMENTS Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16
AdSpend (THB bn)
93 104 105 114 110 102
(+27.6% CAGR) (0.9%% CAGR) (+6.5% CAGR) (-3.2% CAGR) (+0.3% CAGR) (+0.1% Industry CAGR)
93
28% 30% 30% 30% 35% 40% 49% 59% 53% 49% 43% 41% 40% 47% 13% 16% 20% 27% 24% 19% 4% FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Transit Outdoor In-Store
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group General Presentation Section 2.2: Media Business 28
60 80 100 120 140 160 180 200 2008 2009 2010 2011 2012 2013 2014 2015 Total Industry TV* Traditional media OOH Media Cinema
ADVERTISING EXPENDITURES BY SECTOR (rebased)
OOH Media proved to be the fastest growing media sector
* Traditional Media includes Magazines, Radio and Newspapers
TRANSIT MEDIA INCREASED ITS MARKET SHARE CONTINUOUSLY
Transit is continue to dominate the OOH Media market share and expected to increase on account of improving rail mass transit infrastructure.
THE TRANSITION FROM TRADITIONAL MEDIA TO OOH MEDIA
Rising in infrastructure, urbanisation and increasing number of people who spend time outdoor were driven the growth of Thailand OOH Media.
TOP 10 ADSPEND BY BUSINESS SEGMENT
+0.7% CAGR +2.6% CAGR
+1.5% CAGR +4.8% CAGR
21% 27% 31% 31% 29% 34% 39% 48% 66% 61% 54% 50% 44% 40% 41% 45% 13% 13% 16% 19% 27% 26% 20% 7%
2008 2009 2010 2011 2012 2013 2014 2015 Transit Outdoor In-Store 2008 2009 2010 2011 2012 2013 2014 2015 TV Traditional media OOH Media Cinema Internet
95bn 113bn 103bn 114bn 105bn 101bn 90bn 90bn
2014 2015 FMCG 40.7% 40.1% MOTOR VEHICLES 7.7% 7.6% COMMUNICATIONS 6.8% 6.1% GOVERNMENT & COMMUNITY ANNOUNCEMENT 5.7% 6.2% LEISURE 4.4% 4.8% MEDIA & MARKETING 3.3% 3.7% RETAIL SHOPS/STORES 3.0% 3.2% INSURANCE 2.7% 2.7% BANKS 2.4% 2.2% TRAVEL & TOURS 2.3% 2.6% TOTAL 79.0% 79.1%
57% 59% 60% 59% 60% 61% 62% 60% 31% 28% 27% 25% 24% 24% 23% 23% 7% 7% 7% 8% 9% 9% 10% 10% 5% 4% 5% 7% 7% 6% 5% 5%
prepared by Investor Relations department BTS Group Holdings PCL
1,370 1,959 2,795 3,121 2,926 2,069 756 1,012 1,386 1,580 1,530 1,325 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16
Operating Revenue Operating EBITDA
REVENUE CONTRIBUTION FY 14/15 FY 15/16 Net profit margin (%) 28.3% 44.7% ROA (%) 27.8% 39.5% ROE (%) 44.3% 46.2% Net debt to equity (times) 0.3x 0.1x
HISTORICAL OPERATING PERFORMANCE
BTS Group General Presentation Section 2.2: Media Business 29 GROSS PROFIT MARGINS
(THB mn) OPERATING REVENUE AND OPERATING EBITDA Revenue CAGR: 9% EBITDA CAGR: 12% FY 14/15 FY 15/16 Overall 59% 71% BTS-related Media 83% 79% Non-BTS Media 23% 26% GROSS PROFIT CONTRIBUTION
Note: Ratios calculated from VGI’s consolidated financial statements
FINANCIAL INFORMATION BY BUSINESS SEGMENTS
KEY FINANCIAL RATIOS 61% 86% 39% 14% FY 14/15 FY 15/16
Non-BTS Media BTS-related Media
85% 95% 15% 5% FY 14/15 FY 15/16
Non-BTS Media BTS-related Media
prepared by Investor Relations department BTS Group Holdings PCL
KEY CONTRACT TERMS OUR PRODUCTS (% OUT OF 2015/16 BTS-RELATED MEDIA REVENUE)
30 BTS Group General Presentation Section 2.2: Media Business RIGHTS
extension lines and all BTS trains, in-trains & On-Stations and Merchandising Area
transit projects that BTSC is granted the rights to operate media space EFFECTIVE PERIOD
CONCESSION FEE (PAYABLE TO BTSC & BMA)
FY 15/16 Transit Media AdSpend
THB 4.6bn
VGI, 55%
Note: based on a market discount rate of 30%
Other, 45% MARKET SHARE IN TRANSIT
Static Media: > 4,000 displays Digital Media: 2,029 screens Viewer reach: 720,155 people/day Merchandising space: > 10,000 sqm. Target viewer:
younger generation
prepared by Investor Relations department BTS Group Holdings PCL
2015 2029E Total rail length (km) 84.8
515.3
60
>320
Market share of rail mass transit commuters 6.4%
42.4%
(by 2032E)
UPSIDE FROM MASS TRANSIT NETWORK EXPANSION INCREASED DIGITALISATION
DIGITAL MEDIA PENETRATION STILL RELATIVELY LOW IN THAILAND Digital Media market share is expected to increase over time as its platforms provide more capacity and are cost effective. Moreover, it proves to be more adaptable and dynamic than Traditional Media. BTS Group General Presentation Section 2.2: Media Business 31
4X EXPECTED INCREASE IN BTS TRAIN CAPACITY IN 5 YEARS (108.8KM) FY 15/16 FY 19/20E Green Lines (no. of carriages)* 208 412 Other Lines (no. of carriages)** none 418 Total (no. of carriages) 208
4X
830 4X EXPECTED INCREASE IN BTS STATIONS IN 5 YEARS (108.8KM) FY 15/16 FY 19/20E Green Lines (no. of stations)* 34 66 Other Lines (no. of stations)** None 57 Total (no. of stations) 34
4X
123 BANGKOK RAIL MASS TRANSIT MASTER PLAN
* BTS’s existing network, Dark Green South and North extensions and Light Green Line extension ** LRT, Grey Line and Pink Line *** Including Display, Search, social Media, Creative, Mobile, Facebook Ad and Video Source: Digital Media Advertising Association (Thailand)
BTS-RELATED MEDIA REVENUE AT VGI LEVEL (STATIC VS DIGITAL MEDIA) BTS Digital Media (Platform Truss LEDs and E-posters) launched in late 2014 and still has room to grow due to increased capacity and strong recovery post economic slump.
97.7% 96.4% 94.0% 93.0%
2.3% 3.6% 6.0% 7.0% 2012 2013 2014 2015 Digital (online)*** Offline
(THB mn) 543 637 757 750 581 655 648 602
2012/13 2013/14 2014/15 2015/16
Static Digital 48% 49% 54% 46% 51% 52% 1,124 1,292 1,405 1,352 55% 45%
prepared by Investor Relations department BTS Group Holdings PCL
KEY CONTRACT TERMS OUR PRODUCTS
32
OFFICE MARKET SHARE
Locations: 135 grade A buildings in Bangkok Multimedia: 1,091 screens Viewer Reach: >700,000 people/day Average time spent in an elevator: 14 mins/day VGI 63% Others 37%
Grade A and B Building in Bangkok 215 Buildings
OFFICE MEDIA PROFILE
Media inside elevators and office building areas Rights
Contract Length
Contract Fee (payable to building owners)
BTS Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
OFFICE BUILDING NETWORK EXPANSION VS REVENUE* NEW OFFICE SUPPLY IN BANGKOK
318,000 SQ.M. OF NEW OFFICE SUPPLY EXPECTED IN THE NEXT 3 YEARS BTS Group General Presentation Section 2.2: Media Business 33
VGI’S EXISTING OFFICE BUILDING NETWORK IN BANGKOK (BY DISTRICT) CONTINUOUS REVENUE GROWTH FROM NETWORK EXPANSION Office Building Media is set to recover post economic slump and the addition of new office buildings will drive growth in this segment.
* At VGI level Source: CB Richard Ellis (Thailand) Co., Ltd.
Revenue CAGR (6 yrs): 48%
VGI’s office building network Bangkok CBD 19 76 79 145 149 163 201 41 41 47 51 75 103 135
50 100 150 200 400 600 800
FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Office Building Media Revenue (THB mn)
47 6 112 22 20
62 30 25 139 23 23 197 50 191 10 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F CBD ('000 sq.m.) Non CBD ('000 sq.m.)
prepared by Investor Relations department BTS Group Holdings PCL
KEY INVESTMENT AND CONTRACT DETAILS OUR PRODUCTS
34
BTS Group General Presentation Section 2.2: Media Business Investments OUTDOOR MEDIA (Billboards, Street Furniture & Transit Media)
AVIATION MEDIA
ROADSIDE MEDIA
Contracts CHAMCHURI SQUARE (3-yr + 3-yr contract)
EMPIRE TOWER (5-yr contract)
BUSES
Exclusive Selling Agent ARTISTA MEDIA
THAI AIRASIA (3-yr contract with renewable rights)
STREET FURNITURE (3-yr contract)
junctions across Bangkok MEGA LEDS
prepared by Investor Relations department BTS Group Holdings PCL
35
TRANSIT OFFICE OUTDOOR AVIATION RABBIT
ACTIVATION
61%
market share
LONG TERM
contracts end 2029 & 2042
70%
GP margin
>720,000
viewers reached daily
4X
expected capacity
66%
market share
(Grade A&B bldg.)
142
70%
GP margin
>700,000
viewers reached daily
219
condominiums
37.42%
in MACO
389
networking billboards
56%
GP margin
178
mega billboards
654
street furniture
TARGETED 275
brand clients
77
provinces nationwide
>360
exclusive stores
ONLINE & OFFLINE 5MN
card holders
90
merchants
>30MN
potential e-wallet members
33MN
impressions
30%
in Aero Media
342
LCD screens
57
jet bridges
>115MN
viewers reached annually
7,000
trolleys
PROVEN WINNER GROWTH SPRINGBOARD
GROWTH PROSPECTS
In process In process
Bangkok
30 BTS station 52 BTS skytrains 160 office buildings 219 residential buildings
Nationwide
>1,200 MACO billboards >850 Multi Sign billboards Media in 13 airports
BTS Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
36
BTS Group General Presentation Section 2.2: Media Business Demographic Data
Travel data Financial data
DATA WAREHOUSE
PAYMENT SERVICE ONLINE
PROGRAMMATIC HYBRID CAMPAIGN TARGETED MEDIA INNOVATIVE MEDIA
OFFICE OUTDOOR AVIATION ONLINE TRANSIT
MEDIA INVENTORY & AUDIENCE REACH ACTIVATION
ROI
Location data Spending data
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
37 BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
38
BANGKOK CONDO LAUNCHES
63% 61% 56% 61% 50% 52% 54% 56% 58% 60% 62% 64% 66% 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2012 2013 2014 2015
Take-up Rate Units
1Q 2Q 3Q 4Q Average Take-up Rate (RHS) Total 47,339 Total 51,150 Total 50,105 Total 34,666
CONDO LAUNCH PRICES (THB/SQ.M) LAUNCH PRICES AND TAKE-UP RATES BY DISTANCE TO BTS
63% 47% 70% 76% 52% 63% 65% 64% 70% 60% 46% 58% 51% 48% 48% 78%
100,000 150,000 200,000 250,000 2012 2013 2014 2015
THB/sq.m
0 - 200m (CAGR +24.0%) 201 - 500m (CAGR +13.4%) 501 - 1,000m (CAGR +22.6%) Over 1,000m (CAGR +9.8%) 28% 49% 22% 2% 13% 45% 29% 12% 5,000 10,000 15,000 20,000 25,000 30,000 Below THB 50,000 / sq.m THB 50,000 - 100,000 / sq.m THB 100,001 - 200,000 / sq.m THB over 200,000 sq.m
Units
2014 2015
BUYING SENTIMENT AND AVERAGE HOUSEHOLD SIZE
2.29 2.24 2.19 2.14 2.09 1.95 2.00 2.05 2.10 2.15 2.20 2.25 2.30 2.35 40 50 60 70 80 90 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15
Persons Index
Average Household Size Bangkok & Vicinities (RHS) New Residence Buyer's Confidence Index
Source: Colliers International (Thailand) Source: Colliers International Thailand Source: Colliers International (Thailand) Source: REIC, University of the Thai Chamber of Commerce
BTS Group General Presentation Section 2.3: Property Business
prepared by Investor Relations department BTS Group Holdings PCL
2,975 2,993 3,019 3,231 3,152 3,287 1,611 1,907 2,134 2,404 1,961 2,475
53.2% 63.5% 70.6% 74.4% 61.9% 75.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 500 1,000 1,500 2,000 2,500 3,000 3,500 2010 2011 2012 2013 2014 2015
Occupancy THB/Night
ADR RevPAR Occupancy Rate
39
INTERNATIONAL TOURIST ARRIVALS FUTURE BANGKOK HOTEL SUPPLY BY SEGMENTS BANGKOK HOTEL PERFORMANCE METRICS THAI BAHT PERFORMANCE TO MAJOR CURRENCIES
15.9 19.2 22.4 26.5 24.8 29.9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2010 2011 2012 2013 2014 2015
Mn of Visitors
Total Tourist Arrivals to Thailand China Malaysia Russia Others 29,235 31,806 35,028 38,139 40,355 41,961 44,872 47,015 48,255 40% 42% 44% 46% 48%
20,000 30,000 40,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018
Market Share Keys
Economy Mid-Range First-Class Luxury Mid-Range Market Share (RHS)
Source: Department of Tourism, Ministry of Sports and Tourism Source: CBRE Source: Bloomberg Source: CBRE
BTS Group General Presentation Section 2.3: Property Business
0.15 0.16 0.17 0.18 0.19 0.2 0.21 0.22 0.23 0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 THBUSD THBEUR THBCNY (RHS)
prepared by Investor Relations department BTS Group Holdings PCL
2% 18% 19% 3% 38% 21%
40
PROPERTY BOOK VALUE BREAKDOWN PROPERTY DEVELOPMENT APPROACH ALONG MASS TRANSIT
Owners Total Area (Rai) Total Area (sq.m) BTS Group Plc 581.1 899,790.8 Bayswater JV 48.8 77,987.2 U City Plc 416.9 667,056.0 Total 1,046.8 1,644,834.0
TOTAL BOOK VALUE
THB 19.3BN
ATTRACTIVE LAND BANK IN BANGKOK & VICINITIES
BTS Group General Presentation Section 2.3: Property Business
U City THB 7.3bn Commercial THB 3.5bn Residential THB 0.3bn Land Bank THB 3.6bn BTS-Sansiri JV THB 0.6bn
A HISTORY OF UNLOCKING SOLID GAINS ON OUR ASSETS
to launch THB 100bn in project value of residential projects along mass transit routes over 5 years with expected NPAT margin ≈ 12% and equity IRR ≈ 17%
THB 9.4bn in exchange for a 35.64% stake. U City aims to develop or acquire a portfolio of recurring income-generating assets
1,261 1,081 736 4,603 7,681 1,550 1,792 1,411 9,469 14,221
2Q 12/13: Kamala Beach Resort 3Q 12/13: Land at Nana 3Q 14/15: Land at Mochit to SIRI JV 1Q 15/16: BTSA & KKP to U City Total
Book Value Price Sold 1.2x 1.7x 1.9x 2.1x (THB mn) 1.9x as of 30 Sep 2016 Bayswater JV THB 4.0bn
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group General Presentation Section 2.3: Property Business
k a b c h f g i j l
Projects and Properties
c. The Line Ratchathewi d. The Line Asoke-Ratchada e. The Base Garden Rama 9 f. The Grand
i. U Sathorn Hotel j. Thana City Golf & Sports Club
l. Eastin Grand Sathorn Hotel BTS Group Land Bank
U City Land Bank New/Extension Lines Inner City Area Bayswater Land Bank Commercial Properties (h - j) Residential Projects & Properties (a - g) U City Commercial Properties (l) U City Residential Projects (k) Projects and Properties Land Bank
d
41
e
prepared by Investor Relations department BTS Group Holdings PCL
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
Project Name Presale Period Project Value (THB mn) Units
per sqm (THB) Sold Construction Progress*
Start
Completion Foreign Participation THE LINE Jatujak – Mochit May 2015 5,727 841 179k 100% 55% Oct 2017 Dec 2017 14% THE LINE Sukhumvit 71 Aug 2015 1,990 291 169k; fully furnished 100% 99% Oct 2016 Jan 2017 48% THE LINE Ratchathewi Oct 2015 2,925 231 266k 100% 22% 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 80% 4% May 2019 Sep 2019 36% Total/Weighted Average 15,853 2,475 183k 97% 26%
42 BTS Group General Presentation Section 2.3: Property Business
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 Oct 2016
2016 RESIDENTIAL PROPERTY LAUNCH PLAN
Projects Launched so far this year:
prepared by Investor Relations department BTS Group Holdings PCL
and retail space with GFA of 120,000 sqm with a skybridge connection to Phayathai BTS interchange station with Airport Link 43
COMMERCIAL PROPERTY REVENUE BREAKDOWN HOTEL PORTFOLIO
BTS Group General Presentation Section 2.3: Property Business Hotel Name Number of keys Ownership
86 100%
41 100%
26 100%
390 36%*
195 36%*
84 36%* Blended Averages FY 2014 FY 2015 Occupancy Rate 72.1% 80.1% ADR (THB) 2,871 2,910 RevPAR (THB) 2,070 2,331 Gross Margin (%) 51.5% 53.7%
HOTEL PERFORMANCE
* BTS Group’s stake in U City *Sold to U City on 20 April 2015 1 2 3 4 5 6
2016 COMMERCIAL PROPERTY LAUNCH PLAN
Others 23% U-Hotels 38% Thana City Golf 33%
FY 15/16 Commercial Property Revenue:
THB 594mn
Eastin Grand Sathorn* 6%
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
44 BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
45
BANGKOK SMARTCARD SYSTEM (BSS)
The E-money service provider with a common ticketing system supporting BTS and BRT. BSS system also encompass other forms of public transportation as well as retail, service and tourism sectors.
RABBIT
Use on BTS SkyTrain & BRT Use in retail stores
6.3mn
Rabbit cards in circulation (as of Sep 2016) BTS Group General Presentation Section 2.4: Services Business
LARGE PARTNERS NETWORK BUILT
90
brand partners
>3,000
Card readers
and Be 1st Smart Rabbit Card in Mar 2013
functions (travel on the BTS SkyTrain system and purchase of products and services at retail stores) and obtain personnel loans from AEONTS.
won the bid for design and implementation of Central Clearing House (CCH) system for common ticketing system
KEY MILESTONES FOR THE PAST 4 YEARS
prepared by Investor Relations department BTS Group Holdings PCL
46
ONLINE PAYMENT MICRO FINANCE & FINANCIAL COMPARISON BROKER ONLINE CONTENT & DIGITAL MEDIA PLATFORM
RABBIT CARD RABBIT PAY RABBIT FINANCE RABBIT INTERNET
COMMON TICKETING & OFFLINE PAYMENT
Rabbit Card holders
Rabbit Line Pay accounts
Acceptance points
Transactions/day
Settlement value/day
Gross written insurance premium/month
Outstanding Balance
“Lifestyle Publisher” “Digital Marketing”
monthly visits
with more than 1 bn impression RABBIT REWARD BIG DATA CUSTOMER
Powered by
EC website Digital Content Shops
card holders
active card holders
Line users
active line pay users
EXISTING TARGET IN 2020
brand partners
card readers
BTS Group General Presentation Section 2.4: Services Business
prepared by Investor Relations department BTS Group Holdings PCL
Thana City Branch
47
3 dine-in branches, 1 take-away branch, 4 Chairman by Chef Man (Hong Kong Café concept), 1 private dining concept under M Krub restaurant and 1 Man Kitchen buffet
major HK contractor
projects on time and to the quality demanded by discerning clients
whose track record include Four Seasons Samui & Chiang Rai & JW Marriott Phuket & Bangkok
development across Asia
“Eastin Hotels & Residences” brands
Number of hotels
68
Number of rooms
>9,200
Under AHS contracts 2015/16 2016/17E
CHEFMAN RESTAURANTS ABSOLUTE HOTEL SERVICES (AHS)
Eastin Grand Sathorn Branch Express Branch at Royal Place 2 Royal Place 2 Branch
BTS Group General Presentation Section 2.4: Services Business
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
48 BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
KEY FINANCIAL RATIOS FY 15/16 FY 14/15 FY 13/14 FY 12/13 Profitability ratios (%) Gross operating profit margin 57.3% 55.5% 51.4% 48.8% SG&A to operating sales ratio 22.9% 22.0% 19.5% 16.6% Accounting EBITDA margin 59.6% 52.0% 73.% 53.3% Operating EBITDA margin(1) 41.6% 39.9% 36.3% 49.0% Recurring net profit margin (%) 33.7% 34.7% 25.4% 9.7% Liquidity ratio Current ratio (times) 0.83x 3.96x 4.36x 5.79x Leverage (Times) Total liability to total asset 0.28x 0.22x 0.22x 0.25x Total liability to total equity 039x 0.28x 0.29x 0.33x Interest bearing debt to equity 0.20x 0.09x 0.11x 0.24x Net debt to equity 0.15x (0.11)x (0.03)x 0.17x Net debt to operating EBITDA 2.70x (1.96)x (0.65)x 1.66x Interest coverage(3) 8.84x 7.03x 4.94x 4.07x Per share ratios Book value per share (THB) 3.97 4.38 5.09 5.05 Dividend yield (4) 7.75 6.38% 7.37% 4.71%
FY 15/16 REVENUE & EBITDA CONTRIBUTION BY BU
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF (2) Net income attributable to equity holders of the parent (3) Operating EBITDA/finance cost (4) Interim and Final dividends, calculated on annual basis using BTS TB closing share price on the date
REVENUE COMPARISON BY BUSINESS UNIT
49
(THB mn) CONSOLIDATED P&L (THB MN)
FY 15/16 FY 14/15 FY 13/14 FY 12/13 Operating revenues 6,148 7,102 8,532 10,375 Operating expenses 2,625 3,163 4,147 5,317 Non-recurring items 2,124 268 10,971 897 EBITDA 6,268 4,937 10,334 6,186 Operating EBITDA(1) 2,560 2,836 3,100 5,081 Net income(2) 4,141 2,944 12,598 1,719 DEBT INFORMATION (THB MN) 31 MAR 16 31 MAR 15 31 MAR 14 31 MAR 13 Interest bearing debt 9,283 4,556 6,655 11,961 Net debt 6,918 (5,556) (2,013) 8,447 BTS Group General Presentation Section 3: Financial Summary
12% 15% 2.9% 34% 44% 40% 54%
Revenue Contribution EBITDA Contribution
Services Property Media Mass Transit
2,274 2,926 1,355 548 7,102 2,441 2,069 896 741 6,148
Mass Transit Media Property Services Total
FY 14/15 FY 15/16
prepared by Investor Relations department BTS Group Holdings PCL
THB mn Registered Capital (15,928.9mn shares @ THB 4.0) 63,716 Issued and paid-up (11,929.3mn shares @ THB 4.0) 47,717 Others 1,618 Retained earnings (Deficits) (2,419) Total Shareholders’ Equity 46,916 Type Outstanding warrants (mn) Exercise ratio (warrant : share) Exercise price (THB) Outstanding shares reserved for warrants (mn) % Dilution BTS-WA 6.2 1 : 0.166* 4.220* 0.8 0.0% BTS-WB 11.1 1 : 1 5.01 11.1 0.1% BTS-WC 16.0 1 : 1 10.19 16.0 0.1% BTS-W3 3,971.6 1 : 1 12.00 3,971.6 25.0% Total 3,999.6 25.1%
SHAREHOLDERS’ EQUITY
as of 31 Mar 2016
50
* Adjusted under the conditions as stated in the terms and conditions of the warrants
DILUTION IMPACT
as of 31 Mar 2016
ESOP
BTS Group General Presentation Section 3: Financial Summary
40,808 54,883 26,002 10,285
31-Mar-15 31-Mar-16 Total current assets Total non-current assets
66,811 65,169 52,012 46,917 8,238 5,796 6,560 12,455
31-Mar-15 31-Mar-16 Total current liabilities Total non-current liabilities Total shareholders' equity
Cash 31 Mar 15: THB 10.18bn 31 Mar 16: THB 2.36bn Current Investments 31 Mar 15: THB 4.77bn 31 Mar 16: THB 3.27bn Long-Term Investments 31 Mar 15: THB 7.99bn 31 Mar 16: THB 9.56bn Restricted Deposits 31 Mar 15: THB 1.15bn 31 Mar 16: THB 1.24bn Gross Debt 31 Mar 15: THB 4.56bn 31 Mar 16: THB 9.28bn Net Debt 31 Mar 15: THB (5.56)bn 31 Mar 16: THB 6.92bn ***** Issued Ordinary Shares 31 Mar 15: 11,919.3mn 31 Mar 16: 11,929.3mn 61% 39% 16% 84% 19% 72% 9% 78% 10% 12% 66,811 65,169 ASSET BREAKDOWN (THB MN)
LIABILITIES AND EQUITY BREAKDOWN (THB MN)
prepared by Investor Relations department BTS Group Holdings PCL
51 BTS Group General Presentation Section 3: Financial Summary
3,300 300 3,700 430
2,850 200 1,200 180 550 Mass Transit Media Property Services BTS Group
440
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
BTS GROUP TARGETS
6,330 500
Rolling stocks Outdoor Invest in BTS-SIRI JVs (gross) Land acquisition & others
200 5,400
MASS TRANSIT MEDIA*
PROPERTY
SERVICES
E&M Thana City Renovation
10
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief Section 2 Business Segment Profiles Section 2.1 Mass Transit Business Section 2.2 Media Business Section 2.3 Property Business Section 2.4 Services Business Section 3 Financial Summary Appendices Appendix 1: Key Terms of the Core Network Concession Agreement Appendix 2: Future Funding Requirements (Mass Transit) Appendix 3: BTS-W3 Appendix 4: BTSC’s Quality Management System
52 BTS Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
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BTS SKYTRAIN BTSC BMA EXCLUSIVE OPERATION RIGHT CONCESSION AGREEMENT MINISTRY OF INTERIOR AUTHORISATION BTS SKYTRAIN BTSC BMA EXCLUSIVE OPERATION RIGHT CONCESSION AGREEMENT MINISTRY OF INTERIOR AUTHORISATION BTSGIF NET REVENUE TRANSFER AGREEMENT
23 STATIONS, 23.5 KM IN CBD
Connecting Bangkok’s most important business and tourist destinations, serving as the backbone to all Bangkok’s mass transit systems ALL INVESTMENTS MADE BY BTSC Including civil works, E&M and trains (except land acquisition) from private sector sources. BTO for civil works, BOT for electrical and mechanical works, including trains 30 YEARS CONCESSION 30 years of concession period ending 4 Dec 2029, approximately 17 years remaining NO REVENUE SHARING OR CONCESSION FEES FOR BMA Exclusive right to operate and retain all farebox revenues from BTS SkyTrain System during the period of the concession
SCOPE
Procuring, operating and maintaining the mass transit system. BTS has the right to earn revenues from the business related to the BTS Sky Train's system including advertisement, sublicensing and fare collection for 30 years commencing from 5 Dec 1999
EXTENSIONS
BTS must inform the BMA of such intent at least 3 years (< 5 years) prior to the expiration of the Concession Agreement. The extension is subject to the prior approval of the Interior Minister. BTS is granted a ROFR for negotiations with BMA to construct and operate such network extensions
potential investors. BTS Group General Presentation Appendix 1: Core Network Concession Agreement
prepared by Investor Relations department BTS Group Holdings PCL
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
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PROJECTED CAPEX/FINANCING BREAKDOWN OF EXPECTED FUTURE LINES (THB mn) 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 BTS Group General Presentation Appendix 2: Mass Transit Future Funding Requirements 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
prepared by Investor Relations department BTS Group Holdings PCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Reimburse from gov't (civil) E&M Civil works Farebox revenue 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Rolling stocks Investment O&M revenue
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ECONOMIC PROFILE (O&M CONTRACT) ECONOMIC PROFILE (PPP NET COST)
KEY ASSUMPTIONS KEY ASSUMPTIONS 1) 30-year contract from
2) O&M revenue* of THB 141mn/km in FY 16/17 with growth rate of 3.5% p.a. 3) EBITDA margin of 40%
YEAR YEAR
1) 3-year investment in civil and E&M works (includes rolling stock) 2) Assume 10-year repayment from gov’t for civil works 3) Receive farebox revenue (30- year contract from operating date)
BTS Group General Presentation Appendix 2: Mass Transit Economic profile
*O&M revenue includes revenue from provision of operating services and interest income under concession agreement
prepared by Investor Relations department BTS Group Holdings PCL
56 BTS Group General Presentation Appendix 2: Future Funding Requirements (Mass Transit)
(“CRRC”) to procure additional trains. Total of EURO 270mn (before VAT)
south and north extensions Rolling stocks From Delivery Schedule 22x4 trains
Siemens by 2018/19 24x4 trains
CRRC by 2019/20
prepared by Investor Relations department BTS Group Holdings PCL
57 TICKER BTS-W3 TERMS 5 YEARS ISSUE DATE 1 NOV 2013 EXPIRY DATE 1 NOV 2018 EXERCISE PERIOD QUARTERLY STARTING FROM DEC 2016 TO SEP 2018 WITH THE LAST EXERCISE DATE ON 1 NOV 2018 (TOTAL 9 TIMES) WARRANT PRICE
TO EXISTING SHAREHOLDERS AT THE RATIO OF 3 EXISTING BTS SHARES : 1 BTS-W3
3,944,626,464 UNITS EXERCISE RATIO 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS EXERCISE PRICE THB 12.00 PER SHARE EXPECTED MAXIMUM PROCEEDS THB 47,336MN
WARRANTS TERMS AND CONDITIONS
BTS Group General Presentation Appendix 3: BTS-W3
prepared by Investor Relations department BTS Group Holdings PCL
58 OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). OHSAS 18001 : 2007 QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND)
ISO 9001 : 2008 LLOYDS REGISTER RAIL’S BEST PRACTICE MODEL IMPLEMENTATION. LLOYDS REGISTER RAIL ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). BTS Group General Presentation Appendix 4: BTSC’s Quality Management System