Post on 28-Sep-2020
prepared by Investor Relations departmentBTS Group Holdings PCL
4Q & FY 14/15 earnings presentation1 June 2016
BTS Group Holdings PCL
1Q 2016/17 earnings presentation
1Q 2016/17 earnings presentation
11 August 2016
THE LINE ASOKE - RATCHADA
prepared by Investor Relations departmentBTS 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 bereproduced 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 exchangeor 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 aninducement 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 orcommitment 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 personmade aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwiseindicated, 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 anyfuture 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 updateor otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of theCompany 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 losshowsoever 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 theCompany’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 inlight of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to bematerially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be reliedon as promise or representation of the Company as to the future.
21Q 2016/17 earnings presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Agenda
Section
1 BTSG 1Q 2016/17 FINANCIAL PERFORMANCE
Section
2Section
3
BUSINESS UPDATES
BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE(separate presentation)
APPENDICES
31Q 2016/17 earnings presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
PROFITABILITY
• Reported net profit (after MI) decreased by 82% to THB 548mn mainly from the recognition of net gain of THB 2,516mn on swap of investments with U City in 1Q 2015/16
• Net recurring profit (before MI) and margin declined YoY due to lower property operating revenue, acquisition-related costs of MACO ‘s consolidation and higher SG&A of services BU
1Q 2016/17 Financial Highlights
BTS DAILY TRADED VALUE (LTM)(as of 29 Jul 2016)
THB 240.0mn (USD 6.8mn)
RESILIENT MASS TRANSIT-RELATED REVENUE: • Net farebox revenue +5.7% YoY• O&M revenue +5.9% YoY
41Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
• THB 16.4bn cash and liquid investments*
• Low leverage: Net debt / equity at 0.13x
• Credit rating: A/ Stable from FITCH& TRIS
BALANCE SHEET STRENGTH
* Cash and liquid investments exclude sinking fund and include cash bal. of THB 3.3bn, current investments of THB 2.9bn, long term investments of THB 10.1bn
• THB 750mn investment in Rabbit Line Pay
• THB 626mn in net loans to BTS-SIRI Joint Venture
• THB 295mn in net cash paid for purchase of MACO
CASH FLOW – INVESTMENT PHASE
EXPANSION OF SERVICES REVENUE: Total services revenue: +21% YoY to THB 199mn
ACCUMULATION OF FUTURE PROPERTY REVENUE: THB 3.0bn “The Line Asoke-Ratchada” fully sold out, backlog: +28.0% to THB 13.6bn
prepared by Investor Relations departmentBTS Group Holdings PCL
OPERATING REVENUE COMPARISON (YoY)
1Q 2016/17 Overview
Income Statement (THB mn) 1Q 2016/17 1Q 2015/16 %YoY 4Q 2015/16 % QoQ
Operating Revenues1 1,553.5 1,571.9 (1.2%) 1,494.7 3.9%
Gross operating profits 914.2 921.1 (0.7%) 844.5 8.3%
Operating EBITDA2 636.1 664.4 (4.3%) 629.2 1.1%
Recurring net profit – before MI 460.8 507.6 (9.2%) 581.0 (20.7%)
Accounting EBITDA3 990.7 4,313.6 (77.0%) 314.3 215.2%
Net income (loss)4 548.0 3,016.4 (81.8%) 44 N/A
Gross operating profit margin (%) 58.8% 58.6% 56.5%
Accounting EBITDA margin (%) 50.5% 82.9% 19.3%
Recurring net profit margin (%) 26.5% 29.5% 34.9%
Operating EBITDA margin (%) 40.9% 42.3% 42.1%
P&L SNAPSHOT
43%
Mass Transit
35%
Media
9%
Property
13%
Services
1Q 2016/17 OPERATING REVENUE BREAKDOWN
1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 including profit from discontinued operation 4 to equity holders of the parent
51Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
1,572 1,553
35 2 (91)
35
1Q 15/16 Mass transit Media Property Services 1Q 16/17
6% 0%
(THB mn)
(39)%
21%
prepared by Investor Relations departmentBTS Group Holdings PCL
2,365
3,318**
323* (423)
1,053
Beginning cash(31/3/16)
CFO CFI CFF Ending cash(30/6/16)
3 Months Cash Flow Snapshot
6
* After tax (THB 28.9mn) and interest expense (THB 40.9mn)** Excluding BTSC sinking fund and THB 13.0bn liquid investments
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
Net cash paid for other long-term investments
Cash paid for investments in JVs Increase in loans to related parties Release of collateral (restricted
deposits) in relation to offshore loan
Dividend income Decrease in current investments
Increase in Bills of Exchange payables
Cash received from sale of VGI stock
Cash paid for loans from financial institutions Lower profit from
operating activities Increase in trade and
other receivables
(THB mn)
prepared by Investor Relations departmentBTS Group Holdings PCL
Mass Transit
7
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
O&M revenue rose by 6% YoY to THB 417mn mainly from the contractually agreed increase in operating fee of the Sukhumvitextension and Silom extension
Share of net profit in BTSGIF increased 6% YoY to THB 221mn from the increase in core network performance
Costs rose 5% YoY to THB 220mn largely due to higher repair and maintenance expenses and staff costs
Operating EBITDA margin improved YoY to 68.3% (67.9% in 1Q 20 15/16) as operating cost increased at a lower rate than the increase in operating revenue
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
OPERATING REVENUE BREAKDOWNOPERATING PERFORMANCE
Mass Transit (THB mn)1Q
2016/171Q
2015/16YoY
4Q 2015/16
QoQ
Revenue 671.1 636.0 5.5% 639.6 4.9%
O&M revenue 417.3 394.0 5.9% 409.5 1.9%
Share in BTSGIF 221.2 208.4 6.2% 197.3 12.1%
Int income from train procurement
32.6 33.6 (3.0)% 32.8 (0.6)%
Costs of revenue 219.7 208.7 5.3% 213.0 3.1%
Gross profit 451.4 427.4 5.6% 426.6 5.8%
Operating EBITDA 458.4 431.8 6.2% 432.8 5.9%
Gross margin (%) 67.3% 67.2% 66.7%
Operating EBITDA margin (%) 68.3% 67.9% 67.7%
62%
O&M
Share in BTSGIF
33%1Q 2016/17
Int income from train procurement
5%
28
3
28
8
30
8
37
9
37
9
39
2
38
6
39
2
39
4
39
5
395
40
9
41
7
32
33
33
35
34
34
33
34
34
33
33
33
33
20
8
-
-
12
4
17
4
15
7
157
16
6
21
7
19
4
14
7
20
8
22
3
219
19
7
22
1
1Q13/14
2Q13/14
3Q13/14
4Q13/14
1Q14/15
2Q14/15
3Q14/15
4Q14/15
1Q15/16
2Q15/16
3Q15/16
4Q15/16
1Q16/17
Share of NP in BTSGIF (THB mn) Farebox (THB mn)
Int income from train procurement (THB mn) O&M (THB mn)
prepared by Investor Relations departmentBTS Group Holdings PCL
Media
8
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
Overall Media revenue up 0.5% YoY to THB 542mn from anincrease in Outdoor and Office Buildings & Other Media
Outdoor and Office Buildings & Other Media grew THB 68mn toTHB 120mn mainly from(i) the expansion in the Outdoor Media segment by acquiring an
additional 12.46% in MACO(ii) the increase in the number of office buildings, which grew to
142 buildings (103 buildings in 1Q 2015/16) Operating EBITDA margin improved to 60.4% (58.8% in 1Q
2015/16) from lower contribution of lower margin Modern Tradebusiness
22%
Office Buildings & Others
78%
BTS - Related
Media (THB mn)1Q
2016/171Q
2015/16YoY
4Q 2015/16
QoQ
Operating revenue 541.7 539.2 0.5% 491.0 10.3%
Costs of revenue 160.4 177.5 (9.6)% 135.9 18.0%
Gross profit 381.3 361.6 5.4% 355.1 7.4%
Operating EBITDA 327.1 317.2 3.1% 333.2 (1.8)%
Gross margin (%) 70.4% 67.1% 72.3%
Operating EBITDA margin (%) 60.4% 58.8% 67.9%
1Q 2016/17
OPERATING REVENUE BREAKDOWNOPERATING PERFORMANCE
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
844
847 798
632
754
78
7
780
605 539
527
512
491
542
1Q13/14
2Q13/14
3Q13/14
4Q13/14
1Q14/15
2Q14/15
3Q14/15
4Q14/15
1Q15/16
2Q15/16
3Q15/16
4Q15/16
1Q16/17
prepared by Investor Relations departmentBTS Group Holdings PCL
95
0
86
3 68
6
43
6 31
9
33
1
341
36
4
233
33
1
16
1
17
1
14
2
55
4
1,411
9,4691Q
13/142Q
13/143Q
13/144Q
13/141Q
14/152Q
14/153Q
14/154Q
14/151Q
15/162Q
15/163Q
15/164Q
15/161Q
16/17
Operating revenue Proceeds from land sale
THB 9,469
Sale of assets to U City
Property
9
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
Operating revenue was THB 142mn, decreasing 39% YoY from the reduction in both commercial property and residentil property
Residential property revenue was THB 10mn, down 86% YoY mainly due to no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred
Commercial property revenue fell 18% YoY to THB 132mn following the disposal of EGS to U City on 20 Apr 2015
Recorded share of losses from U City of THB 32mn, BTS-SIRI JVs of THB 60mn and Bayswater of THB 33mn in 1Q 2015/16
Operating costs decreased by 35% YoY to THB 91mn. Operating EBITDA decreased to -2%.
THB 1,411
Mo Chit land
THB 554
Sale ofnon-core land
7%
Residential Commercial & Others
93%
OPERATING REVENUE BREAKDOWNOPERATING PERFORMANCE
Property (THB mn)1Q
2016/171Q
2015/16 YoY4Q
2015/16 QoQ
Operating Revenue 141.9 233.0 (39.1)% 171.4 (17.2)%
Costs of revenue 90.9 140.1 (35.1)% 101.0 (10.0)%
Gross profit 51.0 93.0 (45.2)% 70.4 (27.6)%
Operating EBITDA (2.9) 13.9 (120.9)% 17.4 (116.7)%
Gross margin (%) 35.9% 39.9% 41.1%
Operating EBITDA margin (%) (2.0)% 5.9% 10.2%
1Q 2016/17
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
prepared by Investor Relations departmentBTS Group Holdings PCL
Services
10
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
RevenueRevenue increased by 21% YoY to THB 199mn from i) increase inrevenue from BPS of THB 23mn YoY, ii) increase in revenue fromRabbit Internet Group of THB 12mn and iii) increase in ChefManrestaurant of THB 9mn YoY
Costs & SGACosts increased by 35% YoY or THB 44mn to THB 168mn. SG&Arose by 98% YoY to THB 85mn. Key costs and SG&A items weremainly from i) staff costs, ii) marketing expenses of Rabbit InternetGroup and BPS projects
46%
ChefMan
BSS36%
OPERATING REVENUE BREAKDOWNOPERATING PERFORMANCE
Services (THB mn)1Q
2016/171Q
2015/16 YoY4Q
2015/16 QoQ
Revenue 198.7 163.7 21.4% 192.7 3.1%
Costs of revenue 168.4 124.6 35.2% 200.3 (16.0)%
Gross profit 30.4 39.1 (22.3)% (7.7) N/A
Operating EBITDA (27.6) 18.7 N/A (60.1) N/A
Gross margin (%) 15.3% 23.9% 4.0%
Operating EBITDA margin (%) (13.9)% 11.4% (31.2)%
1Q 2016/17
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
BPS
12%
78
10
4
10
7
10
8
126
14
4
13
8
13
9
16
4
19
5
19
0
19
3
19
9
1Q13/14
2Q13/14
3Q13/14
4Q13/14
1Q14/15
2Q14/15
3Q14/15
4Q14/15
1Q15/16
2Q15/16
3Q15/16
4Q15/16
1Q16/17
Rabbit Internet Group
6%
prepared by Investor Relations departmentBTS Group Holdings PCL
46,917 48,569
5,796 5,877
12,455 13,300
31-Mar-16 30-Jun-16
Total current liabilities Total non-current liabilities
Total shareholders' equity
67,745
55,002 56,334
10,167 11,411
31-Mar-16 30-Jun-16
Total current assets Total non-current assets
65,169 67,745
Cash
31 Mar 16: THB 2.36bn
30 Jun 16: THB 3.32bn
Current Investments
31 Mar 16: THB 3.27bn
30 Jun 16: THB 2.94bn
Long-Term Investments
31 Mar 16: THB 9.56bn
30 Jun 16: THB 10.10bn
Restricted Deposits
31 Mar 16: THB 1.24bn
30 Jun 16: -
Gross Debt
31 Mar 16: THB 9.28bn
30 Jun 16: THB 9.69bn
Net Debt
31 Mar 16: THB 6.92bn
30 Jun 16: THB 6.37bn
*****
Issued Ordinary Shares
31 Mar 16: 11,929.3mn
30 Jun 16: 11,929.3mn
Balance Sheet
84%
16% 16%
84%
19%
72%
9%
72%
19%
9%
1Q 2016/17: 0.20x1Q 2015/16: 0.08x
Gross Debt to Equity
11
65,169
1Q 2016/17: 0.13x1Q 2015/16: (0.00)x
Net Debt to Equity
1Q 2016/17: 2.39x1Q 2015/16: (0.01)x
Net Debt to Operating EBITDA
1Q 2016/17: 7.22x1Q 2015/16: 8.29x
Interest Coverage
1Q 2016/17: 0.86x1Q 2015/16: 2.40x
Current Ratio
ASSET BREAKDOWN (THB MN) LIABILITIES AND EQUITY BREAKDOWN (THB MN)
KEY RATIOS
1Q 2016/17 earnings presentationSection 1: BTSG 1Q 2016/17 Financial Performance
prepared by Investor Relations departmentBTS Group Holdings PCL
Agenda
Section
1 BTSG 1Q 2016/17 FINANCIAL PERFORMANCE
Section
2Section
3
BUSINESS UPDATES
BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE(separate presentation)
APPENDICES
121Q 2016/17 earnings presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
MASS TRANSIT UPDATECore Network (Quarter)
13
HISTORICAL AVERAGE FARE & % GROWTH (YOY)HISTORICAL RIDERSHIP & % GROWTH (YOY)
Quarterly ridership = 56.5mn trips, +1.0% YoY, -4.4% QoQ
Quarterly average weekday ridership = 720,857 trips, +1.5% YoY
Net farebox revenue = THB 1,586.7mn, +5.7% YoY, -3.9 QoQ
Quarterly average fare = THB 28.1 per trip, +4.6% YoY, +0.6% QoQ
1Q 2016/17 earnings presentationSection 2: Business Updates
55.9
58.5 59.1 59.1
56.5
9.0% 7.1%4.7% 4.8%
1.0%
-0.9%
4.7%1.0% 0.0%
-4.4%
-50. 0%
0.0%
48.0
53.0
58.0
63.0
1Q 2015/16 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17
Ridership (mn trips) Passenger Growth (YoY)
Passenger Growth (QoQ)
26.9
27.4
27.8 27.9 28.1
-0.7%2.8% 3.5% 4.0% 4.6%
0.0%2.0% 1.6% 0.4%
0.6%
24.0
29.0
1Q 2015/16 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17
Average Fare (THB/trip) Average Fare Growth (YoY)
Average Fare Growth (QoQ)
prepared by Investor Relations departmentBTS Group Holdings PCL
JUL 16 SUMMARY
MASS TRANSIT UPDATEJul 2016 & YTD 2016/17
YTD SUMMARY (APRIL – JULY, 4MTH)
• YTD ridership = 76.7mn trips, +0.8% YoY
• YTD average fare = THB 28.1 / trip, 4.3% YoY
• YTD farebox revenue = THB 2,154.2mn, +5.1% YoY
• Ridership = 20.2mn trips, +0.1% YoY, +0.1% MoM
• Average fare = THB 28.1/trip, +3.5% YoY
• Fare-box revenue = THB 566.7mn, +3.6% YoY
• Average weekday ridership = 755,364 trips, +4.4% YoY
FY 2016/17Ridership Growth Target
5-6%
YTD Ridership Growth Actual
+0.8%
FY 2016/17 Fare Increase Target
1%
YTDFare Increase Actual
+4.3%
14
28.1
27.9 27.9
28.5
28.3
27.6
28.0
4.5% 4.4%
3.2% 4.8%
4.5% 4.5%
3.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
27.00
27.20
27.40
27.60
27.80
28.00
28.20
28.40
28.60
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Average fare price (THB) % Change YoY
19.418.9
20.7
17.8
18.5
20.2 20.24.0%
6.1%
4.2%
-1.0% 0.0%
3.9%
0.1%
-2.0 %
-1.0 %
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
16.00
16.50
17.00
17.50
18.00
18.50
19.00
19.50
20.00
20.50
21.00
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Ridership (mn trips) % YoY ridership growth
1Q 2016/17 earnings presentationSection 2: Business Updates
prepared by Investor Relations departmentBTS Group Holdings PCL
MASS TRANSIT UPDATETimeline and Civil Work Construction Progress
151Q 2016/17 earnings presentationSection 2: Business Updates
MAR 2012Civil works start
MAR 2016MOU between MRTA & BMA signed
2016Expected O&M contract signed
DEC 2018Targeted full operation
GREEN SOUTH (12.8km) GREEN NORTH (18.4km)
MAR 2017Expected 1st station operation
MID 2015Civil works start
MAR 2016MOU between MRTA & BMA signed
2016Expected O&M contract signed
MID 2019Targeted full operation
Civil Work Construction Progress (as of Jul 2016)
Green South
91%
Green North
10%
Source: MRTA, the Company
EARLY 2018Expected 1st station operation
prepared by Investor Relations departmentBTS Group Holdings PCL
MASS TRANSIT UPDATETimeline / Progress
161Q 2016/17 earnings presentationSection 2: Business Updates
PINK (36.0km) and YELLOW (30.4km)
6 JUL – 5 AUG 2016RFP is available for sale
17 NOV 2016Bid envelope opening
2020Targeted operation year
7 NOV 2016The tender submission
2017• Expected contract signed• Expected civil construction
start
ORANGE (23.0km) THAILAND CULTURAL CENTER – MIN BURI
15 JUL – 29 JUL 2016RFP for civil work/ E&M is available for sale
2016Expected construction start
2020Targeted operation year
31 OCT 2016The tender submission
26 JUL 2016The Cabinet approved civil work construction
FEB 2017Expected construction start
2021Targeted operation year
SEP 2016Expected bidding
RED (26.0km): BANG SUE - HUA LAMPONG ANDBANG SUE - PHAYA THAI – MAKKASAN - HUA MAK
Source: MRTA, the Company, http://www.thaigov.go.th
RFP BUYERS PINK YELLOW
1. BTS GROUP / /
2.RATCH / /
3. BEM / /
4. ITD / /
5. STEC / /
6. SK ENGINEERING* / /
7. CHINA COMMUCONSRUCTION*
- /
8. SINOHYDRO CORP* / /
9. CHINA RAILWAY* / /
10. TRC / /
11. BTSC / /
12. PLE / /
13. CNT / /
14. RATP DEV TRANSDEV ASIA*
/ /
15. SMRT INTER* / /
16. UNIQ / /
17. NWR / /
* Foreign buyers
prepared by Investor Relations departmentBTS Group Holdings PCL
MEDIA UPDATENationwide Integrated Media Platform
171Q 2016/17 earnings presentationSection 2: Business Updates
PROVEN WINNER GROWTH SPRINGBOARD GROWTH PROSPECTS
61%market share
LONG TERMcontracts end 2029 & 2042
67%GP margin
>720,000viewers reached daily
4Xexpected capacity
TRANSIT
Leader
66%market share(Grade A&B building)
142office buildings
70%GP margin
>700,000viewers reached daily
219condominiums
OFFICE
Leader
37.42%in MACO
389networking billboards
56%GP margin
178mega billboards
654street furniture
OUTDOOR
Leader
ONLINE & OFFLINE
5MNcard holders
90offline merchants
>30MNpotential e-wallet members
33MNpotential online impressions
DIGITAL
To be the leader
20% in Aero Media
342LCD screens
57aerobridges
115MNviewers reached annually
7,000trolleys
AVIATION
To be the leader
TARGETED
16MNmonthly emails targeted
2.6MNmonthly deliveries (Kerry)
2MNregistered loyalty members
ACTIVATION
To be the leader
*Transit, Office and Outdoor information as of 1Q 2016/17. Aviation, Digital and Activation information as of 2015.
prepared by Investor Relations departmentBTS Group Holdings PCL
MEDIA UPDATEMedia’s Projects in the Pipeline
181Q 2016/17 earnings presentationSection 2: Business Updates
MACO AGREED TO ACQUIRE 70% IN MULTI SIGN
• MACO announced an agreement to acquire 70% in Multi Sign
(THB 439mn)
• Multi Sign is one of the leading outdoor media company with
more than 13 years experience in outdoor media advertising.
• MACO will expand its nationwide footprint through Multi Sign.
• MACO & Multi Sign’ revenue capacity is expected to increase
from THB 900mn to THB 1,200mn.
• Potential from a conversion from existing static media to digital
media at strategic locations.
16%20%
25%
70%
84% 80%75%
30%
Population Number ofHouseholds
Householdincome
Out-of-HomeAdspend
Bangkok &Vicinities
Upcountry
Up-country advertising market is still underserved when comparing to the penetration relative to population, households and household income.
• VGI is now in the process to increase our stake in Aero Media
• VGI invested 20% in Aero Media since 2014 with an option to increase our stake up to 30%.
• Dominant position by covering 13 leading airports, including Suvanabhumi and Don Mueng airport, in Thailand
• Potential expansion in new media projects with new capital injected by VGI
• Solid relationship in aviation industry
IN THE PROCESS TO INCREASE STAKE IN AERO MEDIA UP TO 30%
AERO MEDIA GROUP STRUCTURE
At Peak
• 57 jet bridges in 5 AOT airports
• Buggy service cart wrap in SuvarnabhumiAirport
Prime World Solution
• Official AOT/airport websites management
Media Genius
• Sale agent for advertising media
100% 100% 100%
AERO MEDIA
342 LEDs in 13 Airports
prepared by Investor Relations departmentBTS Group Holdings PCL
Residential
THB 0.3bn3%
32%
29%
36%Bayswater JV
THB 3.9bn
PROPERTY UPDATE
PROPERTY BOOK VALUE BREAKDOWN
COMMERCIAL PROPERTY
COMMERCIAL PROPERTY REVENUE BREAKDOWN
HOTEL REVPAR AND OCCUPANCY
19
HISTORICAL HOTEL OCCUPANCY
Others
28%
U-Hotels
38%Thana City Golf
34%Commercial
THB 3.4bn
1Q 2016/17 earnings presentationSection 2: Business Updates
1Q 2016/17 Commercial
Property Revenue:
THB 132mn
68.8%78.7% 75.9% 78.3% 74.4%
80.5% 81.8% 82.9%76.3%
1Q14/15
2Q14/15
3Q14/15
4Q14/15
1Q15/16
2Q15/16
3Q15/16
4Q15/16
1Q16/17
2,54
4
1,20
4 1,94
0
1,9
76
83.6%
67.4%
75.5% 76.3%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
-
500
1,000
1,500
2,000
2,500
3,000
U Chiang Mai U Inchantree U Sathorn Blended
RevPar (THB per night) Occupancy Rate
Land bank
THB 3.1bn
Total Book Valueas of 30 Jun 16:
THB 10.7bn
* Excludes net investment of THB 444.0mn in BTS-SIRI JV and THB 7,367.0mn in U City
prepared by Investor Relations departmentBTS Group Holdings PCL
PROPERTY UPDATEBTS-Sansiri Projects Launched: The Line Asoke - Ratchada
Distance from mass transit station
300m from MRT Rama 9
Project value THB 3.0bn
No. of units 473 (38 floors)
Avg. selling price per sqm
THB 175k; fully furnished
Foreign participation 36%
Land Area (Rai) 2-0-200
20
Intl. Roadshow / Domestic Presales
Construction Starts
Construction Completion
Transfer Starts
Transfer Completion
Jun 2016
Nov 2016
Aug 2019
Sep 2019
Mar 2020
1Q 2016/17 earnings presentationSection 2: Business Updates
EXPECTED TIMELINE
THE LINE ASOKE - RATCHADA
prepared by Investor Relations departmentBTS Group Holdings PCL
PROPERTY UPDATEBTS-Sansiri Projects Launched
Project NameTHE LINE
Jatujak - MochitTHE LINE
Sukhumvit 71THE LINE
RatchathewiTHE LINE
Asoke - Ratchada
Distance from mass transit station
300m from BTS Mo Chit
400m from BTS Prakanong
220m from BTS Ratchathewi
300m fromMRT Rama 9
Project value THB 5.7bn THB 2.0bn THB 2.9bn THB 3.0bn
No. of units 841 (43 floors) 291 (28 floors) 231 (38 floors) 473 (38 floors)
Avg. selling price per sqm THB 179k THB 169k; fully furnished
THB 266k THB 175k; fully furnished
Land Area (Rai) 4-2-95.7 1-3-54.4 1-2-12 2-0-200
Intl. Roadshow / Domestic Presales
Construction Starts
Construction Completion
Aug 2015
May 2015
Nov 2016
Dec 2016
Mar 2017
Transfer Starts
Transfer Completion
Oct 2015
Jan 2016
Aug 2018
Sep 2018
Mar 2019
May 2015
Mar 2015
Dec 2017
Jan 2018
Sep 2018
21
Target project value of THB 100bn to be developed over 5 years under BTS-SIRI partnership Approximately THB 11bn in project value launched and fully presold in 2015 Expected equity IRR ≈ 17% and NPAT margin ≈ 12%
2016 Guidance: expected 6 projects launched with value of THB 23bn
1Q 2016/17 earnings presentationSection 2: Business Updates
Jun 2016
Nov 2016
Aug 2019
Sep 2019
Mar 2020
prepared by Investor Relations departmentBTS Group Holdings PCL
PROPERTY UPDATEU City Phayathai Project to be launched
221Q 2016/17 earnings presentationSection 2: Business Updates
HOTEL 14 FLOORSNFA. 14,111 SQ.M397 KEYS
SERVICED APARTMENTS 15 FLOORSNFA. 7,532 SQ.M118 UNITS
GRAND BALLROOM
PARKING 906 CARS
LOBBYRESTAURANT
CHEF MAN
FITNESSMEETING ROOM
ALL DAY DINNING
FUNCTION ROOM
HOTEL FACILITIESNFA. OTHER 852 SQ.M
NFA. OTHER 470 SQ.MLOUNGE
OUTDOOR WEDDING AREA
OFFICE 12 FLOORSNFA. 22,452 SQ.M
RETAIL NFA. 7,096 SQ.M
DETAILS AREA (SQ.M) REMARK
LAND AREA 10,526 6-2-31.45 Rai
TOTAL GFA 120,400
TOTAL NFA 52,513
EFFICIENCY (%) 43.6%
NFA. SERVICED APARTMENTS 7,532 14.3% of NFA
NFA. HOTEL 14,111 26.9% of NFA
NFA. OFFICES 22,452 42.8% of NFA
NFA. OTHER (MAINLY RETAIL) 8,418 16.0% of NFA
CAR PARK 906
prepared by Investor Relations departmentBTS Group Holdings PCL
Agenda
Section
1 BTSG 1Q 2016/17 FINANCIAL PERFORMANCE
Section
2Section
3
BUSINESS UPDATES
BTSGIF 1Q 2016/17 FINANCIAL PERFORMANCE(separate presentation)
APPENDICES
231Q 2016/17 earnings presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Breakdown of Share of Income /(Loss) from Investmentsin JVs and Associates (1Q 2016/17)
241Q 2016/17 earnings presentationAppendix: Breakdown of Share of Income (Loss) from Investments and JVs
per Financial Statements THB mn
Share of loss from investments in JVs (94.3)
Share of loss from investments in associates 193.9
Total 99.6
Share on Investments in Associates
THB mn
Absolute Hotel Services (AHS) 0.8
BTSGIF 221.2
MACO and Aero Media 3.0
U CITY (31.8)
MACO’s associates 0.6
Total 193.9
Share on Investments in Joint Ventures
THB mn
ATS (AEON-Rabbit) 4.9
Bayswater (33.1)
BTS-SIRI JV projects (59.9)
Rabbit LINE Pay (6.3)
Total (94.3)
prepared by Investor Relations departmentBTS Group Holdings PCL
LINE ROUTEAUTHORISING
BODYTARGETED
OPERATE YEARCONSTRUCTION
PROGRESSDISTANCE
(KM)BLUE HUA LAMPHONG - BANG KHAE MRTA 2019 UNDER CONSTRUCTION 14.0
BLUE BANG SUE - THA PRA MRTA 2019 UNDER CONSTRUCTION 13.0
DARK RED BANG SUE - RANGSIT SRT 2019 UNDER CONSTRUCTION 26.3
DARK GREENSOUTH
BEARING - SAMUT PRAKARN MRTA 2018 UNDER CONSTRUCTION 12.8
DARK GREENNORTH
MO CHIT – SAPHAN MAI – KHU KHOT MRTA 2019 UNDER CONSTRUCTION 18.4
LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0
LRT BANG NA - SUVARNABHUMI BMA 2019 18.3
GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2019 16.3
PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 – 2021 36.0
DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2020 – 2021 7.0
YELLOW LAD PRAO – SAM RONG MRTA 2020 – 2021 30.4
ORANGE TALING CHAN – MIN BURI MRTA 2020 39.8
LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2021 9.0
LIGHT RED MAKKASAN – HUA MARK SRT 2021 10.0
DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2019 10.0
DARK RED BANG SUE - HUA LAMPHONG SRT 2021 6.5
TOTAL (KM) 274.8
274.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 84.5KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
108.8km
BTS Group: Potential DEVELOPER of Mass Transit ExtensionsFocused on 6 lines; total length of 108.8km
1Q 2016/17 earnings presentationAppendix: Target of New Mass Transit Lines
25
Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, State Railway of Thailand, Ministry of Transport, Bangkok Expressway and Metro Public Company Limited (BEM), BTS Group Holdings Public Company Limited (BTS)
prepared by Investor Relations departmentBTS Group Holdings PCL
BTS Group: Potential DEVELOPER of Mass Transit extensionsBTSG well-positioned for new contracts
1Q 2016/17 earnings presentationAppendix: Target of New Mass Transit Lines
26
PINK LINE• Khae Rai – Min Buri (36.0km)• Expected turnkey bidding: 2016• Target operation: 2020 – 2021
DARK GREEN NORTH LINE• Mo Chit – Saphan Mai – Khu Khot (18.4km)• Civil works on progress• Expected O&M award: 2016• Target operation: Mid 2019
GREY LINE• Watcharaphol – Rama 9 Bridge (26.0km)• Awaiting EIA approval• Expected bidding (Phase I): late 2016• Target operation (Phase I): 2019
Phase I: Watcharaphol – Thong Lo (16.3km)
LIGHT RAIL TRANSIT (LRT)• Bang Na – Suvarnabhumi (18.3km)• Expected bidding: 2016• Target operation: 2019
DARK GREEN SOUTH LINE• Bearing – Samut Prakarn (12.8km)• Civil works on progress• Expected O&M award: 2016• Target operation: Dec 2018
Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand,Bangkok Metropolitan Administration, Ministry of Transport
LIGHT GREEN LINE• Bang Wa – Borommaratchachonnani (7.0km)• Expected O&M award: 2017• Target operation: 2019
prepared by Investor Relations departmentBTS Group Holdings PCL
MASS TRANSIT UPDATEProcurement of 184 carriages - Thailand’s Largest Train Order
27
• On 23 May 2016, BTSC signed the contract with Siemens Consortium (“Siemens”) and CRRC Changchun Railway Vehicles Co., Ltd. (“CRRC”) to procure additional trains. Total of EURO 270mn (before VAT)
• 46 additional 4-car trains, totaling of 184 carriages to serve the increased patronage in existing network, together with green line south and north extensions
1Q 2016/17 earnings presentationAppendix: Procurement of 184 carriages
Rolling stocks From Delivery Schedule
22x4 trains• 7x4 trains for existing network • 15x4 trains for green line south extension
Siemens by 2018/19
24x4 trains• 21x4 trains for green line north extension• 3x4 trains – spare trains for extensions
CRRC by 2019/20
prepared by Investor Relations departmentBTS Group Holdings PCL
Bayswater TransactionTransaction Summary
Bayswater (50:50 affiliated company of BTS and GLAND), won the auction for a land plot at Phaholyothin Road.
This project is excluded from the strategic alliance framework with SIRI.
Land Price THB 7,350mn
Ownership Freehold
Area 48 – 2 – 96.8 Rai (77,987.2sqm)
BTS Proximity 200m from N10, future Green Line North station
Land Details
281Q 2016/17 earnings presentationAppendix: Bayswater Transaction
prepared by Investor Relations departmentBTS Group Holdings PCL
Rabbit LINE Pay TransactionTransaction Summary
29
Rabbit Pay subscribed 2mn new shares
for 50% shareholding in Line Biz Plus
number of shares 1,999,999 shares
price THB 375 per share
total investment THB 750mn (THB 600mn by BSSH &
THB150mn by Kerry Logistic)
TRANSACTION SUMMARY
TIMELINE OF RABBIT LINE PAY
STRUCTURE
BSS Holdings Kerry Logistic
80% 20%
LINE
Line Biz Plus
50% 50%
Rabbit Pay
RATIONALE
• Established Thailand 1st Integrated online & offline payment platform
• Revitalising the e-payment platform anticipation of cashless society
• Expand “Rabbit” brand and services to nationwide
• A critical part of supporting VGI’s strategy of “Nationwide Integrated Media Platform”
SYNERGIES WITH VGI
• Big data based services
• 2nd step to nationwide integrated media platform
• Targeted marketing and Digital Advertising
• Improve VGI’s occupancy by bundling online and data
• VGI & Rabbit, a leading offline and online media platform
25 APR 2016: Injected THB 750mn & signed BSS’s acquiring agreement
APR 2016: Complete Kerry Integration
AUG 2016: Rebranding Line Pay to be “Rabbit Line Pay”
1Q 2017: Full merchant upgrade to support QR payment
3Q 2016: Pilot QR payment at merchants
4Q 2016: Pilot Campaign
1Q 2016/17 earnings presentationAppendix: Rabbit LINE Pay Transaction
prepared by Investor Relations departmentBTS Group Holdings PCL
FY 2016/17 BTS Group Targets and CAPEX
30
Rolling stocks4,100
200
1,000
180
300
500
1,200
Mass Transit Media Property Services BTS Group
Thana City renovation
• 5-6% Ridership Growth
• 1% Average Fare Increase
• 3-4% O&M Revenue Growth
BTS GROUP CAPEX/ FINANCING (THB mn)
FY 2016/17 TOTAL CAPEX** THB 7.6BN
*assumes consolidates MACO from Jun 2016 onwards **excludes real estate development cost for Property business
2016/17 BTSGIF CAPEX is expected to be approx. THB 490mn (not included in BTS Group CAPEX)
BTS GROUP TARGETS
MASS TRANSIT
MEDIA*
• 50% Revenue Growth
PROPERTY
• THB 620mn Commercial Property Revenue
• THB 60mn Residential Property Revenue
• THB (100)mn Share of Net Loss from BTS-SIRI JVs
SERVICES
• 6.5mn Rabbit Cards in circulation
• Reach to 2,000 retail shops with 4,500 readers
• 3mn Rabbit Rewards Membership
4,280
500
Outdoor
Invest in BTS-SIRI JVs
Land acquisition & others
10110
2,700
1Q 2016/17 earnings presentationAppendix: FY 2016/17 BTS Group Targets and CAPEX
prepared by Investor Relations departmentBTS Group Holdings PCL
BTS Group UpdateDividend
311Q 2016/17 earnings presentationAppendix: Dividend Summary
DIVIDEND PAYMENT HISTORY
DIVIDEND POLICY FY 2016/17 AND BEYONDS
• Dividend policy: reverts to “no less than 50% of the net income after tax in accordance with the Company's financial statements (on a standalone basis)”.
• Aim to pay a dividend that is competitive with the constituent companies of the SET50 Index
2,0
15.1
2,7
47.6
4,3
59.0
7,07
2.8
7,09
3.8
8,04
8.0
41.6%79.8% 79.7%
35.0%
200.7%122.8%
5.19% 6.55% 4.79% 7.34% 6.21% 7.75%
-950 .0%
-750 .0%
-550 .0%
-350 .0%
-150 .0%
50.0%
250.0%
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
8,000.0
9,000.0
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Dividend (THB mn) Payout ratio (%) Dividend Yield (%)
prepared by Investor Relations departmentBTS Group Holdings PCL
321Q 2016/17 earnings presentation
Q&As